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Lagarde Says Quarter of EU Single‑Market Reforms Could Offset U.S. Tariffs

She frames mutual recognition as the fastest path using existing EU tools.

Overview

  • The ECB president told the Frankfurt European Banking Congress that implementing roughly one quarter of identified single‑market changes would fully neutralize the tariffs’ drag on growth.
  • She called for cutting cross‑border regulatory and administrative barriers, promoting an approve‑once‑accept‑everywhere approach instead of full harmonization.
  • Lagarde argued that progress is stymied by the European Council’s unanimity rule, which she said still blocks meaningful steps in key areas.
  • She insisted the measures require no new treaties or institutional overhauls, only political will to deploy instruments already available.
  • The remarks position domestic structural reforms as Europe’s immediate response to higher U.S. duties, leaving action to national governments and EU leaders.