Christine Lagarde, President of the ECB, in an interview on 19 February 2026, addresses Europe’s reform efforts, geopolitical issues, digital euro, and global economic stability.
On 19 February 2026, Christine Lagarde, President of the European Central Bank (ECB), conducted an interview with the Wall Street Journal. She discussed her commitment to her mandate of price and financial stability, and her intention to serve until the end of her term.
Lagarde highlighted Europe’s strengths, such as infrastructure and social indicators, while emphasizing the need for reforms like Capital Markets Union, Savings and Investments Union, energy reform, and productivity improvements. She expressed optimism about Europe’s capacity for reform, especially in response to external critiques.
She addressed the concept of a multispeed Europe, mentioning initiatives by Spain and other countries, and the possibility of coalitions of member states moving forward on reforms. Lagarde acknowledged internal fragmentation and the importance of reforms to unify efforts.
Regarding geopolitical risks, she discussed cyber threats, hybrid warfare, and the importance of protecting the EU from destabilization efforts. She also commented on the evolving US-EU relationship, noting differences in approach under the current US administration compared to previous ones.
Lagarde recounted her walkout from a Davos speech due to offensive remarks about Europe, and affirmed the importance of central bank independence, supporting Federal Reserve Chair Jay Powell’s stance. She praised Powell’s leadership and principles, and discussed the challenges faced by Kevin Warsh, a potential future US Federal Reserve Chair.
She reflected on the lessons from the 2022 inflation surge, acknowledging initial misjudgments by central banks and the importance of agility and anticipation in policy responses. Lagarde expressed her support for Powell’s approach to balancing inflation control and economic growth.
On Europe’s internal political landscape, she warned of increasing fragmentation and the need for courageous leadership to counter populist threats. She emphasized the importance of European unity, especially in AI development, advocating for cooperation, standards harmonization, and collective action.
Lagarde discussed the euro’s international role, noting its credibility and the ECB’s efforts to enhance its global standing through measures like the euro repo line. She highlighted the importance of geopolitical strength and rule of law for the euro’s reserve currency status.
She distinguished between cryptocurrencies and stablecoins, supporting the adoption of distributed ledger technology (DLT) for digital currencies, including the digital euro, which is awaiting legislative approval.
Regarding her future, Lagarde mentioned options including participation in the World Economic Forum, with personal considerations like family location influencing her decision. She expressed confidence in the ECB’s reputation and her role within it, emphasizing the importance of independence.
