Christine Lagarde, ECB President, discusses Europe’s potential for growth through structural reforms, decision-making models, and leveraging its size for economic scale in her 2026 Paul A. Volcker Award acceptance speech.
Christine Lagarde, President of the European Central Bank, delivered the acceptance speech for the 2026 Paul A. Volcker Lifetime Achievement Award at the 42nd Annual NABE Economic Policy Conference in Washington DC, United States.
She discussed the influence of individuals versus institutions in shaping history, highlighting Paul Volcker’s role in transforming central banking and emphasizing the importance of culture and conviction in maintaining independence.
Lagarde addressed Europe’s decision-making processes, noting that despite the need for unanimity, the ECB’s large Governing Council provides strengths such as resilience, diversity of perspectives, and speed in responding to crises. Examples include rapid responses during the pandemic and inflation surges, supported by EU-wide fiscal measures like the Next Generation EU program.
She examined structural issues affecting long-term growth, including demand composition, supply-side constraints, and the potential of technological adoption, especially AI, in manufacturing and services sectors. Europe’s industrial base and investment trends are seen as assets that can be harnessed for future growth.
Lagarde emphasized the importance of turning size into scale through reforms in the Single Market and capital markets. Initiatives such as enhanced cooperation and flexible frameworks are key to unlocking Europe’s growth potential. She concluded that Europe’s ability to act is evolving, with increasing willingness among member states to move forward even without full unanimity, and expressed confidence in Europe’s capacity to address its structural challenges.
Source: ECB official website
