19 August 2026
European Central Bank warns continent losing competitive edge to U.S., China
- Christine Lagarde, head of the European Central Bank, said Wednesday that Europe's three-pillar post-war growth model is cracking: global trade is shrinking, cheap energy access is gone, and U.S. military leadership is withdrawing.
- Trump's tariffs on EU goods (initially 20%, then reduced to 15%) and threats to reduce U.S. security commitments in Europe are forcing companies to prioritize resilience over efficiency, reducing investment and economic output.