U.S. retreat from global order ‘eroding’ European competitiveness, central bank boss warns

Christine Lagarde, president of the European Central Bank (ECB), during a rates decision news conference in Frankfurt, Germany, on Thursday, June 11, 2026. Alex Kraus | Bloomberg | Getty ImagesEurope is facing an erosion of the conditions that historically drove the continent's growth, its top central banker warned Wednesday, as she called on leaders not to repeat mistakes made during the dotcom boom in the age of AI. Speaking at the World Economic Forum's International Business Council in Geneva, Switzerland, on Wednesday, European Central Bank President Christine Lagarde warned that the continent's post-war growth model is "eroding" and "unlikely to return to the form we once knew."This economic growth, Lagarde told an audience, rested on three pillars: expanding global trade, manufacturing supported by access to cheap energy, and "a stable, rules-based global order, underpinned by a U.S. security umbrella."All three of those pillars are weakening today, Lagarde said.Last year alone, she said, more than 2,500 trade restrictions were implemented globally. Shortly after his return to the White House, President Donald Trump unveiled a raft of targeted tariffs, including a 20% baseli...