Christine Lagarde, ECB President, discusses Europe’s potential for long-term growth through structural reforms, decision-making models, and leveraging its size for scale, in her acceptance speech for the 2026 Paul A. Volcker Award.
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.
She reflected on the influence of individuals versus institutions in shaping history, citing Paul Volcker’s decisive actions in the 1980s that transformed central banking and emphasizing the importance of culture and conviction in maintaining independence.
Lagarde highlighted Europe’s decision-making structure, noting that despite its size, the ECB’s Governing Council’s diversity enhances its resilience and independence, especially during crises such as the pandemic and energy shocks.
She discussed Europe’s capacity for rapid action, citing examples like the €750 billion emergency asset purchase program and the Next Generation EU recovery fund, emphasizing the importance of structural reforms to sustain long-term growth.
Lagarde identified three key areas for Europe’s growth: the changing composition of demand, new supply possibilities through technological adoption, and turning size into scale via internal market reforms.
She noted that recent reforms and initiatives, such as enhanced cooperation and flexible decision-making, demonstrate Europe’s ability to adapt and act decisively outside of unanimity constraints.
In conclusion, she expressed confidence that Europe can address its structural weaknesses and leverage its size for sustained growth, emphasizing that action is within reach when the political will exists.
Source: ECB official website
