Interview with Christine Lagarde, President of the ECB, conducted by Marie-Pierre Gröndahl on 8 May 2025

18 May 2025

The new US President’s first 100 days in office have been a period of economic and financial chaos. What’s the best response to all of this chaos and disruption?

President Trump taking office changed the state of play in three key areas at once: the economy, politics and defence. These have been three key pillars of international cooperation in the increasingly globalised world of recent decades. But this is an opportunity more than a threat – Europe is needed now more than ever. European leaders have to seize this opportunity and speed up the process of deepening the European Union. As we see our reliance on others in the areas of energy, defence and finance being questioned, we need to work together. These are public goods and require coordinated action at the European level. None of the countries in the euro area would be able to tackle the challenges in these three areas on their own.

Can the EU manage to do so?

The EU brings together 450 million people whose purchasing power per capita, standard of living and productivity are lower than in the United States. But the EU also has undeniable strengths and capabilities, starting with the often overlooked fact that our largest trading partner is in fact the EU itself, not the United States. Europe has no option but to rise to this challenge. Just as we are seeing how the rule of law, the courts and trade rules are being challenged in the United States, and how uncertainty is a constant and seems to be renewed every day, Europe is quite rightly seen as a stable economic and political region with a solid currency and an independent central bank. It’s impressive to see that in a period of uncertainty, when the US dollar would usually have strengthened significantly, the opposite has happened and the euro has strengthened compared with the US dollar.

Why?

It is counter-intuitive but can be explained by the level of uncertainty and the fact that some parts of the financial markets are losing confidence in US policies.

How can the EU react to the increase in tariffs announced by Donald Trump?

It needs to have a strong hand should negotiations prove unsuccessful. This means it needs to have identified the relevant sectors, regions, amounts and percentages to be able to determine the retaliatory measures that are available. From a business perspective, it has to negotiate, consider the room for manoeuvre, understand what the other side wants and see whether an agreement can be reached. The fact that the European Commission is seeking common ground with other countries, in Latin America for example, but also India, Indonesia and countries in South-East Asia, is also very relevant.

Can Europe emerge united?

It depends partly on the global challenges we are facing. If all European countries were facing external threats, they would need to take a leap forward together. NATO has so far been working very well in helping to protect Europe. We have now all understood that there was a need to build a common European defence mechanism together. Shared threats can give rise to shared initiatives, as we saw with the Next Generation EU borrowing during the pandemic. “Let’s share our best elements and enrich ourselves with our mutual differences”, as the great European Paul Valéry said.

Many French and European business leaders are disappointed that the recommendations in Mario Draghi’s report have not been acted on. They have also criticised over-regulation in Europe. Do they have a point?

They’re being slightly unfair. It’s true that progress towards greater European integration over the past 50 years has also led to a build-up of regulation. But legislative initiatives like the “Omnibus” packages, which combine multiple amendments or revisions, have kept coming over the past few months. There is political will to reduce reporting obligations and increase efficiency, but this can’t be done overnight. Politicians have a very important role to play here.

The Franco-German relationship is considered to be a driving force of the EU, but it seemed to be losing momentum in recent years. Will the arrival of a new German Chancellor change things?

The meeting between Emmanuel Macron and Friedrich Merz on 7 May sends a very strong signal. As does the announcement by the new Chancellor of a €500 billion infrastructure investment programme, in addition to a significant increase in defence spending. This is a major change for Germany. This Franco-German partnership, without which few initiatives would get off the ground, seems committed to acting together. Certain projects, like the capital markets union, had been on hold for a few years because the Franco-German partnership wasn’t working so well. These two leaders understood that it would be necessary to mobilise funds at the European level and build platforms to attract those who want to invest in it. And there are many who want to.

What needs to be done to stop a large proportion of European savings from being invested in the United States?

We need to create European solutions that help us avoid the type of dependence we had for energy, particularly for payment infrastructures and the digital euro. The major payment providers, which account for just over 60% of the market, are not European. Digital payment systems do exist in some EU countries, but none have pan-European reach. The European Parliament needs to act on the draft legislation that has been under discussion since July. I think there is the political momentum for things to move a bit faster. The digital euro is a topic that the ECB is working on jointly with the Parliament, which has to approve the project. On our side, as of October we will be technically ready to complete the preparations to implement and gradually scale up the project.

Can Europe catch up in these two areas?

Definitely. We need to develop a smart regulatory framework. Europe is not the Wild West. For the digital euro and the capital markets union, the groundswell is the strongest I’ve seen in the six years I have been at the ECB. We also need to harmonise supervision, like we have successfully done for banking.

Does this period worry you?

I’m not at all pessimistic. In Europe, employment is holding up, purchasing power is increasing and inflation is falling. Consumption and investment should pick up again, even if the uncertainty sparked by the US Administration’s announcements is weighing on confidence and holding back that recovery. However, I think we need to demonstrate a shared desire to free ourselves from the energy, military and financial dependencies we naively lulled ourselves into. It’s a rude awakening, but we can rise to the challenge – Europe has already partially shown that by diversifying its energy supply sources. And we should further reduce gas supplies that come from Russia. I am intentionally being positive, because I also think that’s the approach we have to take. Europeans tend to be less optimistic than Americans – I’ve spent enough time living in the United States to be able to say that with at least a small amount of credibility. We tend to approach things more critically. But being positive certainly does not mean ignoring the reality of the situation.

Precisely, the falsehoods are piling up, including where economics is concerned. How does one fight against this phenomenon?

It’s another challenge we’re being confronted with – what is and isn’t true. We should all check facts and figures, and the authenticity of everything that is reported. Journalists have a fundamental duty in this regard.

Is globalisation being called into question?

I think globalisation has had an underlying legitimacy issue for a long time. Even though it has been very beneficial for some countries and has saved hundreds of millions of people from famine, it has also followed, perhaps too closely, a logic of cost reduction, efficiency and fragmentation. And that’s without considering the issues of deindustrialisation and the impoverishment of certain regions or geographical areas that have been tragically affected by it. These issues have of course been exploited for electoral gain. But they should nevertheless give us cause to rethink how our economic relations, our supply sources and our payment infrastructures are organised, also with the aim of preserving the European social model, which is more protective than others.

The IMF has recently published some fairly negative forecasts for France in terms of debt reduction and the deficit. What is your opinion?

Every country, no matter its debt level or its deficit-to-GDP ratio, can decide to set its public finances on a new trajectory. In European fora, such as ECOFIN [the Economic and Financial Affairs configuration of the Council of the EU] or the Eurogroup, the French authorities have expressed their determination to reduce the budget deficit and the debt level. These intentions must become reality. It’s a question of credibility – a question that every country is facing.

The US President has attacked both the strategy of the Federal Reserve and its Chair, Jay Powell, on several occasions. Would such a thing be conceivable in Europe?

The independence of the European Central Bank is guaranteed by the Treaties. So no, that would not be possible. Central bank independence is fundamental if a country, or group of countries, is to have a healthy monetary and financial system. It has never ended well when a central bank has found itself under the thumb of a fiscal authority.

In a significant move aimed at revitalizing the European agricultural sector, the European Commission has unveiled a comprehensive package of reforms designed to simplify the Common Agricultural Policy (CAP) and enhance the competitiveness of farmers across the bloc. Announced on May 14, 2025, the new measures target administrative inefficiencies, streamline regulatory requirements, and improve crisis response mechanisms — all while delivering substantial cost savings and greater flexibility for both farmers and national administrations.

A Bold Step Toward Simplification

The reform package is part of the European Union’s broader effort to reduce red tape and support economic resilience, as outlined in the Competitiveness Compass . By simplifying rules and procedures, the Commission aims to make agriculture more attractive, especially to small-scale and young farmers, while also promoting sustainability and digital innovation.

According to the Commission, these changes could save up to €1.58 billion annually for farmers and €210 million for national authorities , freeing up resources that can be reinvested into farm development, environmental protection, and rural economies.

Key Highlights of the Reform Package

Simplified Payment Scheme for Small Farmers

One of the most notable changes is the doubling of the annual lump-sum payment limit for small farmers from €1,250 to €2,500 . This measure is intended to:

• Promote a fairer distribution of CAP support,
• Encourage economic vitality in rural areas,
• Reduce bureaucratic obligations for small farms and public authorities alike.

Small farmers benefiting from this scheme will also be exempt from certain environmental conditionality rules, although they may still receive eco-scheme payments for adopting environmentally friendly practices.

Easier Environmental Compliance

To reflect the diversity of farming practices and regional conditions, the Commission is introducing more flexible environmental requirements:

• Certified organic farms will automatically meet some EU environmental standards.
• Farmers involved in protecting peatlands and wetlands under GAEC 2 will receive incentives and support to comply with stricter national regulations.

This approach ensures that farmers are rewarded fairly for their environmental stewardship without being overwhelmed by overlapping or redundant rules.

Modernized Controls Using Technology

The use of satellite data and other digital tools will significantly reduce the need for on-site inspections. Under the new framework:

• Each farm will undergo only one on-the-spot check per year , minimizing disruption and saving time for both farmers and inspectors.

This shift reflects the EU’s commitment to leveraging technology to improve efficiency and transparency in agricultural monitoring.

Enhanced Crisis Response Tools

Farmers facing natural disasters, animal diseases, or market shocks will benefit from more accessible and flexible crisis management instruments:

• New crisis payments will be available through CAP Strategic Plans.
• Member States will have greater autonomy to adjust their plans, provided they obtain prior approval from the Commission for strategic amendments.

These changes aim to ensure faster, more targeted support during emergencies, strengthening the resilience of Europe’s agricultural sector.

Digitalization and Interoperability

The Commission is pushing forward with its “report once, use multiple times ” principle, encouraging national administrations to develop integrated digital systems. This means:

• Farmers will submit data only once through a centralized system.
• The same data will be used across different reporting requirements, reducing duplication and improving efficiency.

Additionally, small farmers will gain easier access to funding through a new lump-sum grant of up to €50,000 to help modernize their operations and improve competitiveness.

Looking Ahead: A Broader Agenda for Regulatory Reform

This CAP simplification package builds on earlier reforms introduced in 2024 and aligns with the Commission’s Vision for Agriculture and Food , launched in February 2025. It is also part of a wider cross-sectoral initiative aimed at cutting unnecessary bureaucracy across the EU economy.

The legislative proposal will now be submitted to the European Parliament and Council for adoption. Later this year, the Commission plans to introduce further simplification measures targeting non-agricultural policies that impact farmers and agri-food businesses.

As part of its current mandate, the Commission has committed to achieving a 25% reduction in overall administrative burdens and 35% for SMEs , ensuring that EU rules remain effective but not overly burdensome.

Conclusion: Farming for the Future

With today’s announcement, the European Commission has taken a decisive step toward creating a more agile, farmer-friendly, and sustainable agricultural policy. By easing compliance, supporting innovation, and empowering small producers, the EU is laying the groundwork for a stronger, more resilient farming sector capable of meeting future challenges — from climate change to global market volatility.

For Europe’s farmers, the message is clear: the road ahead will be less bureaucratic, more supportive, and increasingly aligned with the realities of modern agriculture.

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Most EU citizens seek a peaceful coexistence in a diverse society, yet the complexities surrounding migration policies can create division. Understanding the importance of solidarity in shared migration policies is vital for fostering a more inclusive environment. In this post, you will discover effective methods to advocate for unity while navigating the challenges of migration, ensuring that your voice contributes to a positive change across Europe. By implementing these strategies, you can play a pivotal role in shaping a compassionate, welcoming future for migrants and host communities alike.

Understanding Solidarity

While the concept of solidarity within the European Union (EU) is often viewed as a moral imperative, it is integral to the efficacy of shared migration policies. Solidarity encourages cooperation among member states, fostering a sense of shared responsibility. This is particularly significant in the context of migration, where challenges can be unevenly distributed. A united approach enables the EU to respond more effectively to humanitarian crises and to support those nations that face disproportionate pressures from incoming migrants.

The Importance of Solidarity in Migration Policies

To understand the dynamics of migration within the EU, it is imperative to recognise that solidarity is not just a philosophical notion but a practical necessity. By working together, member states can develop robust migration frameworks that ensure the humane treatment of migrants while maintaining national security. Solidarity embodies shared values—human rights, dignity, and respect—that are integral to the fabric of European identity. This commitment can galvanise collective action aimed at creating more comprehensive solutions.

Key Factors Influencing Solidarity Within the EU

An array of factors shapes the level of solidarity among EU member states, influencing their migration policies. These factors include economic disparities, political climates, historical contexts, and public attitudes towards migrants. To reinforce solidarity, it is vital to address inequality by ensuring that resources are equitably shared. Furthermore, fostering a sense of community among European nations can enhance collaborative efforts in responding to migration issues. The interplay of these elements often determines the degree of political will to act in harmony.

• economic disparities
• political climates
• historical contexts
• public attitudes

Policies that reinforce solidarity must actively engage with varying historical narratives and national identities that shape public perceptions of migration. Engaging communities through education and outreach can help dispel myths and build empathy towards migrants. Additionally, encouraging governments to create inclusive frameworks will lead to better integration of migrants into local societies. A concerted effort is needed to pursue policies that reflect the shared values of the EU while addressing the real concerns of member states.

• inclusive frameworks
• public perceptions
• community engagement
• collaborative action

Knowing how these factors interact not only enhances your understanding of solidarity but also empowers you to advocate for better policies that uphold the values and principles of the European Union.

How To Promote Solidarity

Any efforts to promote solidarity within the EU should begin by establishing effective policies that are tailored to the unique needs of each member state while considering the broader picture. Cooperation between nations can be facilitated through shared migration policies that prioritise human rights and ensure that the challenges faced by migrants are met with compassion and pragmatism. To achieve this, you need to foster open dialogue amongst decision-makers that will allow for *mutual understanding* and *collective responsibility*. Your ability to advocate for these shared goals can significantly influence the effectiveness of policies that promote integration and social cohesion.

Tips for Policy Makers

With practical strategies in mind, your role as a policy maker requires actionable steps to strengthen the EU’s commitment to solidarity. Consider implementing the following ideas:

• Encourage bilateral agreements between member states to address specific migration challenges.
• Promote funding initiatives to support local projects aimed at migrant integration.
• Facilitate public awareness campaigns that highlight the contributions of migrants to society.
• Implement training programmes for officials to better serve diverse communities.

Thou must persistently advocate for a culture of solidarity through unwavering commitment and innovative practices.

Community Engagement Strategies

Now, engaging with communities is pivotal in fostering a collective sense of responsibility towards migrants. By actively involving local residents in initiatives, you can create an environment where everyone feels valued, and misconceptions are dismantled. This can be achieved through collaborative projects, community events, and open forums that not only educate but also empower individuals to act. You should focus on fostering relationships between migrants and locals, thereby enhancing social cohesion and mutual respect within the community.

Solidarity can be cultivated through active participation in community-led initiatives, ensuring that both migrants and locals share their experiences and challenges. By creating safe spaces for dialogue, you effectively dismantle barriers and enable the development of a united front against discrimination and xenophobia. It is imperative to emphasise that involving both groups in decision-making processes strengthens community bonds and lays the groundwork for more inclusive policies. This communal effort not only illustrates the importance of shared values but also champions a positive narrative that all can rally behind.

Establishing Shared Migration Policies

It is imperative to create a coherent framework for migration policies within the EU that fosters mutual benefit and addresses the needs of both migrants and host countries. This necessitates the establishment of shared migration policies that facilitate cooperation among member states. Your engagement in discussions surrounding Solidarity under EU asylum policy with the New Pact on … will play a significant role in shaping these policies. A unifying approach not only addresses humanitarian concerns but also enhances the overall stability of the EU, fostering solidarity during times of increased migration pressures.

Best Practices for Implementation

Now is the time for you to turn theory into practice by focusing on successful case studies within the EU. For instance, collaborative initiatives that champion both local community support and migrant integration have worked effectively in various member states. These best practices showcase how local authorities can engage citizens in welcoming migrants, thus mitigating social tensions and enhancing public acceptance. You can facilitate these initiatives by sharing resources and fostering partnerships between local governments and NGOs to ensure your migration policies are effectively implemented.

Overcoming Challenges in Policy Development

Any attempts to develop shared migration policies will inevitably face challenges, from political reluctance to logistical barriers. You must acknowledge that differing national priorities and perspectives on migration can create a complex environment in which policy cohesion is difficult to achieve. Collaborative approaches that promote understanding and address common goals are necessary for overcoming these hurdles.

Best practices include intentional dialogue between member states, ensuring clear communication of objectives, and fostering a spirit of cooperation. By understanding that challenges such as differing economic conditions or public sentiment towards migrants can jeopardise successful policy implementation, you equip yourself with the knowledge to advocate for solutions. With the right strategies in place, the EU can transform these challenges into opportunities for a more integrated and peaceful approach to migration policy.

Enhancing Collaboration Among Member States

To foster effective migration policies across the EU, you must recognise that collaboration among member states is necessary. By working collectively, you can share resources, strategies, and best practices, significantly improving the handling of migration challenges. This cooperation not only strengthens the policies in place but also promotes a sense of solidarity, enabling you to create a more cohesive approach to migration management throughout the EU.

Building Networks for Support

On the journey towards more integrated migration policies, building networks among member states is paramount. As you engage with other nations, you can establish partnerships that facilitate mutual support and create a unified front against the complexities of migration. By connecting with various stakeholders, you can share experiences and solutions, leading to improved outcomes for both migrants and receiving communities.

Facilitating Information Exchange

States must prioritise the sharing of vital information regarding migration patterns, policies, and best practices. Through enhanced communication channels, you can better understand the challenges faced by other member states and the solutions they have implemented. This knowledge exchange empowers you to adopt more effective approaches, thereby strengthening your migration framework.

Facilitating information exchange should involve the creation of centralised databases and platforms where you can access and share data freely. By making relevant information readily available, you ensure that your policies are informed by the latest developments and challenges faced by other EU countries. This collaborative effort diminishes the risk of overlapping strategies and promotes tailored responses to migration issues, ultimately leading to a more effective, cohesive policy framework across the European Union.

Monitoring and Evaluating Solidarity Efforts

Many countries within the EU are learning that effective monitoring and evaluation systems are imperative for assessing the implementation and impact of solidarity in shared migration policies. You must ensure that these systems are not just perfunctory; instead, they should provide you with meaningful insights into how policies affect migrants and host communities alike. This also includes analysing the social, economic, and cultural implications of your solidarity efforts, allowing you to refine your strategies continually. Without such systems in place, it would be nearly impossible to gauge the effectiveness of the initiatives undertaken and identify areas that require improvement.

Assessment Metrics

Assuming you want to assess the impact of your solidarity measures accurately, implementing a robust set of assessment metrics is indispensable. These metrics should encompass both qualitative and quantitative measures that evaluate not only the immediate outcomes of your policies but also their long-term sustainability. For example, tracking the rates of integration of migrants, their access to health and education services, and public perceptions of migrants can provide a valuable snapshot of how your shared policies are performing. Ensuring that these metrics are aligned with EU-wide standards will facilitate cross-country comparisons and enhance accountability.

Adapting Policies Based on Feedback

For your policies to remain effective, you need to remain flexible and open to incorporating feedback from various stakeholders, including migrants themselves. By establishing feedback loops, you can gain invaluable insights into the lived experiences of those impacted by your initiatives. This adaptive approach enables you to identify what works, what doesn’t, and where adjustments are necessary to improve the overall effectiveness of your shared migration policies.

Another important aspect of adapting policies based on feedback is the involvement of local communities and organisations. Engaging with these stakeholders allows you to draw upon their expertise and ground-level observations, thereby enriching your understanding of the challenges faced by migrants. Furthermore, listening to different voices enhances community cohesion and reduces resistance to migratory policies, ultimately leading to more effective and inclusive approaches that benefit everyone involved. In such a manner, your solidarity efforts can evolve and better respond to the dynamic landscape of migration in the EU.

Encouraging Public Support for Migration Solidarity

Now, fostering a supportive environment for migration solidarity within communities begins with effective communication. By raising awareness and understanding about the benefits of migration, you can help reshape the narrative around this important issue. Engaging in public discussions, social media campaigns, and local events will allow you to highlight how migration enriches your society, contributes to the economy, and fosters diversity. When individuals can see the tangible positive impacts of migration, they may become more inclined to support shared migration policies.

Raising Awareness and Understanding

Solidarity is rooted in knowledge, and promoting a better understanding of migration can significantly enhance public support. You can take the initiative to organise workshops, informational sessions, or community forums where people can learn about the real stories and experiences of migrants. Sharing statistics and evidence of how migrants contribute positively to your community can dispel myths and misconceptions. By transforming fear and uncertainty into informed opinions, you empower your peers to support migration solidarity actively.

Addressing Misconceptions and Fears

Any efforts to build solidarity must address the misconceptions and fears surrounding migration. Many people harbour irrational fears about migrants taking jobs or infringing on community resources. You can play a pivotal role in dismantling these arguments by providing data that demonstrates how migrants often fill critical gaps in the labour market and contribute to economic growth. Engaging with sceptics through informed conversations can create a more receptive atmosphere for shared migration policies.

Support for migration solidarity requires a proactive approach in tackling the general misconceptions that might pervade your community. It is vital to show that the integration of migrants often leads to a more vibrant, culturally rich environment, counterbalancing misplaced fears of resource competition. Highlighting personal stories of migrants can foster empathy, and reminding your peers that we all share common human experiences can pave the way for a more supportive stance towards shared migration policies. Your voice and actions can significantly affect how migration is perceived and supported within the community.

Conclusion

With this in mind, it is crucial that you actively engage in the promotion of solidarity across shared migration policies within the EU. By advocating for comprehensive strategies that facilitate the fair distribution of migrants and refugees, you can contribute to a more unified approach among member states. Fostering partnerships that encourage collaboration will not only enhance the overall resilience of the European Union but also strengthen the social fabric of your local communities, ensuring that integration and support mechanisms are effectively implemented.

Furthermore, by staying informed and educating others about the benefits of solidarity in migration, you can play a pivotal role in shaping public opinion and policy. Emphasising the shared responsibilities among nations can lead to a more empathetic response to the challenges faced by migrants. By participating in discussions, raising awareness, and supporting initiatives aimed at reinforcing solidarity, you empower yourself and others to contribute to a more harmonious and equitable European Union, setting a positive precedent for future generations.

FAQ

Q: What is the concept of solidarity in relation to migration policies within the EU?

A: Solidarity within the context of EU migration policies refers to the collective responsibility of member states to support and assist each other in managing migration effectively. This involves sharing the burdens and benefits of migration, ensuring that all countries contribute to the integration and support of migrants, regardless of their individual circumstances or capabilities.

Q: Why is shared migration policy important for EU member states?

A: Shared migration policy is vital for EU member states as it promotes a unified approach to handling migration challenges. By collaborating, countries can enhance their capacity to provide humanitarian assistance, maintain security, and leverage resources effectively. It also helps prevent situations where some countries bear a disproportionately high burden of migration, fostering a sense of unity and mutual support among nations.

Q: What strategies can EU countries adopt to foster solidarity in migration policies?

A: EU countries can adopt various strategies to encourage solidarity, such as establishing fair relocation mechanisms for asylum seekers, creating joint funding initiatives to support local integration efforts, and sharing best practices regarding migrant services. Additionally, fostering dialogue and cooperation among member states can help to build trust and ensure a coordinated response to migration challenges.

Q: How can civil society contribute to promoting solidarity in EU migration policies?

A: Civil society plays a significant role in promoting solidarity by voicing the needs and rights of migrants, mobilising public opinion, and advocating for inclusive policies. Non-governmental organisations and community groups can provide vital support services to migrants, facilitating their integration. Furthermore, they can work with governments to influence policy formation and promote a culture of understanding and acceptance towards migration.

Q: What role does public perception play in the success of shared migration policies in the EU?

A: Public perception is a significant factor in the success of shared migration policies within the EU. Positive public attitudes towards migrants and the benefits of migration can enhance support for solidarity initiatives. Conversely, negative perceptions can lead to resistance against migration policies. Education and awareness campaigns can help to dispel myths and foster a more inclusive environment, thereby promoting the success of shared migration efforts across member states.