Open the newsletter to watch the White House for free
Your guide to what the American elections mean 2024 for Washington and the world
The President of the European Central Bank has suggested that “Europe may be able to attract” talent “disappointed from all parts of the Atlantic Ocean after the election of Donald Trump, and called for the continent to better recognize its economic power points.
Christine Lagarde said that Europe needs to improve in preserving its talents and savings at home, adding that the decision of the new US administration to freeze some funding for the law to reduce inflation in former President Joe Biden may remove one of the incentives to invest in the United States.
Without direct reference to Trump, the French Central Bank indicated that some American population may be attracted to Europe in the wake of the American opening.
We need to keep talent at home. We need to keep savings at home. Perhaps it is also time to import a few talents that will be disappointed, for one reason or another, on the other hand. ”
Trump's re -election prompted some American and resident citizens to think about leaving the country, with lawyers in the United Kingdom Reporting Interest from liberal Americans in the transition.
Lagarde's words came on the closing day of the World Economic Forum in Davos, where investors and executives highlighted the difference between the optimistic mood over the American economy and deep pessimism about the weak growth possibilities in Europe.
Larry Fink, CEO of Blackrock alongside Lagarde, said in a committee, he believed that there is a lot of pessimism in Europe and may have come to invest in the continent.
Lagarde said that the European Union faced “existential threats”, but this should be an invitation to wake up to his leaders to take measures to enhance the mass.
She said that the positive performance card for the euro area included a relatively low government deficit at about 3 percent of GDP, and “strong confidence” in that annual inflation, which was 2.4 % In December, he would have been likely to retract the reaction.
Lagarde admitted that some executives were not “very optimistic” about European horizons, but said that the continent could respond to its economic challenges if “actually gathered their leaders.”
Among the changes that Europe can benefit from Trump's decision to suspend the exchange of some funds under the law to reduce inflation, which was an important temptation for European companies seeking to create manufacturing projects in the United States.
Andy Marsh, CEO of Plug Power – a hydrogen developer in the United States and a spare parts manufacture Companies to transfer investments elsewhere.
“We will go to where there are markets.” “If there is more attention to our products because of politics in Europe and Australia, we will spend more time in Europe and Australia. I think this will be the approach that most companies will take.”
Despite the expected slowdown in green technology investments, economists believe that the United States is still a more attractive destination for investor capital from Europe.
“You have a relative growth story in the United States, you have subsidized or cheap energy for the heavy industry, and you have direct pressure on Europe – and some other places – from Trump says that for sale in America, said Adam Bosn, director of the Peterson Institute for International Economy of the International Economy:” will have to be on Companies are produced here. ”
“Regardless of anything, you will have a significant increase in foreign direct investment (in the United States) during the next year or two years.”
European politicians in Davos also argue that Trump returns to establish commercial barriers to open an opportunity for the European Union to enhance his relations with other countries around the world. Lagarde said that the Europeans learned after World War II that “you cannot go alone” and that instead they need to sit on the table and cooperation.
“What is happening outside is a challenge, but also a great opportunity to reconsider whether Europe wants to be a major player,” she said. “I am competing for her talent, she has means and has ambitious.”
Fink said, despite his optimism that the issue of investment in Europe has grown, that Europe was a “legend” because the unified market is incomplete, including financial services.
Lagarde. “Europe is not a legend. It is not a basket condition. It is a great state of transformation.”
