Interview with ECB President Christine Lagarde on monetary policy and Europe

Christine Lagarde, President of the European Central Bank (ECB), was interviewed by Jean-Christophe Lalay and Maxime Mainguet on September 12, 2026.

She explained that the ECB increased key interest rates to address inflation, which is currently at 3.3% in the euro area, above the 2% target. The rise aims to counteract a prolonged external shock caused by conflicts and energy price increases.

Lagarde emphasized that the ECB’s mandate is to maintain price stability across the euro area, which requires reacting to external shocks even if growth slows. She highlighted the importance of structural reforms in France, including the capital markets union, administrative simplification, labor market flexibility, and pension reform.

Regarding growth, she noted that demographic trends can be offset by improved productivity and that Europe must mobilize its talent, savings, and education to boost economic resilience. She also discussed rising government borrowing costs, attributing them to public finance conditions and AI-related funding needs, but reassured that the financial sector is stronger than in previous crises.

Lagarde dismissed proposals to cancel French debt held by the Banque de France, citing financial and legal risks. She warned of potential AI-related stock market corrections in the US that could impact Europe, but noted that European banks are better capitalized today.

On her future, she stated her intention to leave the ECB in October 2027 and ruled out a return to national politics, citing her age and experience. She shared her perspective as a European and a woman from Normandy, emphasizing her role in advocating for Europe.