Christine Lagarde's biggest challenge is Germany


CHRISTINE Lagarde is still to be confirmed as the European Central Bank’s next president, but work is already piling up on her desk. The euro zone is in danger of becoming the biggest collateral victim of the U.S.-China trade war and Lagarde will need all her political skills to plot an escape route from the threat of recession.

The euro zone is uniquely vulnerable to any blockages in international trade. In 2017, exports of goods and services amounted to 27.9% of its gross domestic product compared to 12.1% for the U.S., according to the ECB. The monetary union had a current account surplus of 323 billion euros ($362 billion), or 2.8% of GDP, in the year to May. While countries such as Germany and Italy might be very different in their commitment to fiscal rectitude - and in how they’re viewed by the bond market - they both share the same export-led model of economic growth.

Save 30% for ads-free and full access now!

Monthly Plan

RM13.90/month
RM9.73 only

Billed as RM9.73 for the 1st month then RM13.90 thereafters.

Annual Plan

RM12.33/month
RM8.63/month

Billed as RM103.60 for the 1st year then RM148 thereafters.

1 month

Free Trial

For new subscribers only


Cancel anytime. No ads. Auto-renewal. Unlimited access to the web and app. Personalised features. Members rewards.

Follow us on our official WhatsApp channel for breaking news alerts and key updates!

Others Also Read


Want to listen to full audio?

Unlock unlimited access to enjoy personalise features on the TheStar.com.my

Already a member? Log In