A leading European Central Bank (ECB) officer has strictly criticized the trade war policies by former US president Donald Trump, who labeled them with a “loss of game loss” that damaged the economic stability of economic and ensured between the allies.
In a Conference In New York, ECB official Francois Villeroy de Galhau said the aggressive trading steps threatened to thirty a fragile economy. He added that increasing tariffs between major economies creates uncertainty for the business, encourages investment, and risks to financial stability.
Villeroy, one of European's most influential central banks, emphasized the growing demand for loyalty to the Atlantic, urging a thorough assessment of trade war damage and encouraging efforts to reopen the path for constructive communication.
His comments follow a series of global economic forecasts. Just before Villeroy spoke, the International Monetary Fund (IMF) changed the global forecasts of its growth down for this year and the next. The IMF warned things that could have worsened if the trade war was still rising.
Villeroy stood for European values
Villeroy also discussed President Trump's comments that criticized the European Union. Trump criticized the EU as a group created to take advantage of the United States and called it unfair to trade matters. Villeroy pushed that story again.
The European Union, he added, was arrested after World War II with deep support in America.
Villeroy added that peace, democracy, and market-based economies are major American values and that the European Union is multilateralism “at best,” with a steady backing from the United States.
The ECB official's defense reflects the European increase that is not slow about how the current US administration is treating allies long. Previous American presidents have been made so that global leadership partners when talking to Europe. Trump's rugged posture is a well -known removal.
Villeroy's comments also came after President ECB Christine Lagarde called EU governments to boost internal trade and cooperation earlier in the day. Lagarde has called on European countries to remove barriers to one another to withstand external shocks such as trade wars more effectively.
Villeroy calls for positive Dialogue
Villeroy ended his speech by motivating the intentional, rational discussions between the US and Europe aimed at fixing the disagreement.
He denied the notion that international trade was a zero-sum game, where one country's success comes at the expense of another. Instead, he framned global commercials as a powerful driver of fellow development – built on the exchange of goods, services, talents, and changes.
Villeroy also taught the frequently noticed facts in the heated trade debates. He noted that the US is holding a significant trade trade service in Europe, especially financially, technology, and consulting – areas where it stands to benefit most. He further stated that mechanisms such as the amount added tax (VAT) differ in customary duties and are not intended as protectionist measures.
Villeroy added that the ECB baseline scenario continues to project inflation to return near 2% in 2025 without a huge backdown. But he said that increasing trade tensions posed risks to this forecasting.
Villeroy calls on Europe to react by growing stronger – investing better, innovative faster, and developing new partnerships worldwide. He also emphasized that the US still has the opportunity to work, especially in global financial stability, cybersecurity, digital assets, and climate change.
To close, he sounded a sharp warning about political contact with central banks, saying that attacks on their freedom and credibility, as recently seen, could have a start to damage the financial consequences.
Trump often attacks the US Federal Reserve and its seat, Jerome Powellsuggesting the US central bank failed to make enough to protect the economic momentum. But Trump said on Tuesday that he did not intend to burn Powell.
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