Lagarde: Europe should reduce its dependence on external sources and accelerate the exploration of its internal market potential.

European Central Bank President Lagarde stated at the 35th Frankfurt European Banking Congress on the 21st that Europe's traditional export-oriented growth model is facing a structural crisis. The EU must accelerate the exploration of internal market potential, reduce reliance on external markets and key resources, and enhance long-term economic competitiveness. Lagarde pointed out that in the past, Europe was highly integrated into the global system, with the share of foreign trade in GDP steadily rising. However, in the context of changing global dynamics, US tariffs, and the Russia-Ukraine conflict, exports are no longer a stable growth engine. At the same time, a large amount of European capital flows to the US market, leading to weak domestic investment and productivity growth, exacerbating the economy's dependence on external factors.