Listen in as Christine Lagarde, President of the European Central Bank, speaks with Martin Wolf, the Financial Times’ Chief Economics Commentator, in this special session from the FT Global Boardroom, taking place 9–11 December 2025.
As part of FT Live’s flagship global event, Lagarde discusses the eurozone’s economic resilience, the ECB’s progress on price stability, and why Europe is confronting an “existential crisis” driven by internal market fragmentation. She outlines the urgent need to remove structural barriers across EU member states, strengthen the capital markets union, and support innovation through productive investment.
The conversation ranges across some of the most pressing issues facing Europe today — from inflation and fiscal policy to global currency competition, the threat posed by US-dominated stablecoins, and the strategic case for a digital euro. Lagarde also speaks about Europe’s defence financing, investor confidence, and the shifting geopolitical landscape reshaping global capital flows.
This interview is part of the FT Global Boardroom, a free digital event hosted by FT Live, bringing together 100+ leading voices from business, finance, government and academia to debate the defining issues shaping the world economy.
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Topics in this discussion include:
– Eurozone inflation, growth outlook and resilience
– Structural impediments and internal EU trade barriers
– Capital markets union and the future of European investment
– Fiscal policy, productive spending and joint EU issuance
– The euro in global markets vs. the US dollar
– Frozen Russian assets and international law
– Risks of US-based stablecoins for European monetary sovereignty
– Europe’s path toward a digital euro
Chapters:
00:00 – Introduction
00:57 – Martin Wolf reflects on Lagarde’s career
01:23 – State of the Eurozone economy: inflation, resilience & projections
02:41 – Why Europe resisted economic shocks better than expected
03:45 – Productivity challenges and Europe’s growth potential
04:05 – Structural barriers, internal tariffs & EU market fragmentation
05:19 – Europe’s “existential crisis” and the urgent need for reform
06:01 – Are IMF estimates of internal EU trade barriers accurate?
06:36 – Lessons from the Netherlands and reducing self-inflicted obstacles
07:04 – Political resistance and national preferences blocking reform
07:54 – Macron’s proposal to broaden the ECB mandate
09:08 – Lagarde on why lower rates won’t fix structural barriers
09:40 – The ECB mandate: price stability and wider economic factors
10:20 – Political pressure and central banks as scapegoats
11:31 – Excess savings in the eurozone & investment gaps
13:03 – Why Europe needs a stronger capital markets union
14:29 – The challenge of keeping investment inside Europe
15:02 – Productive spending and the role of fiscal policy
16:08 – Should Europe increase joint investment, including in defence?
17:12 – Joint EU issuance & defence financing: Lagarde’s personal view
17:41 – The euro vs. the US dollar: shifting global investor sentiment
19:39 – Using frozen Russian assets to support Ukraine
20:45 – Protecting the rule of law and investor confidence
21:48 – US stablecoins and the threat to European monetary sovereignty
23:55 – The case for a digital euro
24:49 – Timeline: Will the digital euro launch under Lagarde?
25:21 – Digital euro and financial sovereignty examples
25:56 – Regulating euro-based private stablecoins
26:46 – Sovereignty, financial crime and the risks of US stablecoins
27:06 – Closing thoughts and end of interview
Credit to : FT Live