ECB President Christine Lagarde discusses monetary policy, digital euro, and global economic issues

On June 24, 2026, Christine Lagarde, President of the European Central Bank (ECB), was interviewed by Guillaume Benoit and Christophe Jakubyszyn. She addressed the ECB’s decision to raise key interest rates on June 11, 2026, stating that the decision was justified based on data confirming external supply shocks and rising inflation excluding energy and food, which increased from 2.2% to 2.5%.

Lagarde explained that the ECB’s monetary tightening aims to control inflation, with projections of 3% for 2026, 2.3% for 2027, and 2% for 2028. She noted only a slight downward revision of growth forecasts from 0.9% to 0.8%, and emphasized the robustness of the financial sector and low unemployment rates.

Regarding future policy moves, she stated that decisions depend on incoming data and the inflation outlook, and that no specific plans for further tightening are currently set. Lagarde also discussed the undervaluation of the renminbi, potential currency tensions, and Europe’s economic strength, including untapped productivity and savings of around €35 trillion.

She highlighted the European Parliament’s approval of the digital euro, which will reduce transaction fees for merchants and enable individuals to use it at all points of sale and for peer-to-peer payments. She addressed concerns about digital euro holdings caps, explaining that the total impact would be minimal compared to existing bank deposits, and that banks will facilitate access to the digital euro.

Lagarde discussed public debt levels in the euro area, noting an average of 88% of GDP, with divergences among member states. She emphasized the importance of structural reforms, especially in France, and expressed concerns about artificial intelligence and cybersecurity risks.

She reaffirmed her commitment to serve as ECB President until October 2027, but left open the possibility of early departure if circumstances change. Regarding her potential involvement in French politics, she indicated she might participate in the presidential debate to advocate for Europe’s role and France’s economic future.

Lagarde concluded by emphasizing the need for courageous decisions by French candidates and the importance of a strong European environment for economic stability and growth.