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According to Donald Trump’s election, Europe may attribute dismissed “talents” from the entire Atlantic, as the European Central Bank President asked the continent to better recognize its economic strengths.
Christine Lagarde said that Europe had to keep its talents and savings better at home, and added that the decision of the new US government, financing the former President Joe Bidens, would remove one of the incentives for investing in the USA .
Without a direct connection to Trump, the French central banker stated that some US residents could be attracted to Europe after the United States.
“We have to keep the talent at home. We have to keep the savings at home. Perhaps it is time to import some of the talents that would be disappointed from one other reason from another side of the sea, ”she said.
Trump’s re-election caused some US citizens and residents to leave the country with lawyers in Great Britain reporting An influx of liberal Americans in the move.
Lagard’s words came on the final day of the World Economic Forum in Davos, in which investors and managers highlighted the contrast between the optimistic mood of the US economy and deep pessimism about the weak growth prospects of Europe.
Larry Fink, Managing Director of Blackrock, said that he was spoken to Lagarde on a panel that he was too much pessimism in Europe, and it was probably time to invest in the continent again.
Lagarde said that the EU was exposed to “existential threats”, but that this should work as a wake -up call for its leaders in order to take measures to strengthen the block.
she said 2.4 percent In December it was more likely that it would go back than to react.
Lagarde admitted that some managers were “not very optimistic” in the European prospects, but she argued that the continent could react to his economic challenges if his leaders “actually bring their action together”.
The changes that Europe could benefit include Trump’s decision to suspend the payment of some funds as part of the Inflation Reducation Act, which has served as an important temptation for manufacturing projects in the United States for European companies.
Andy Marsh, Chief Executive by Plug Power -A developer and parts manufacturer of US Clean hydrogen, which in the last hours of bid administration a loan of USD 1.66 billion from the office of the Department of Energy Loan Programs won, investments to move elsewhere.
“We will go where there are markets,” said Marsh. “If there is more interest in our products due to politics in Europe and Australia, we spend more time in Europe and Australia. I think that would be the approach that most companies would pursue. “
Despite the expected slowdown of investments in Green Tech, economists believe that the United States is still a more attractive location for investors capital than Europe.
“In the United States, they have a relative history of growth, they have subsidized or cheap energy for heavy industry and they have direct pressure on Europe – and some other places – from Trump, who says that this is sold in America. Companies have to produce here, ”said Adam Posen, director of the Peterson Institute for International Economics Think-Tank.
“Regardless of anything, you have a great increase in foreign direct investments (in the USA) in the next one or two years.”
European politicians in Davos have also argued that Trump’s vow of building trading barriers opened up the opportunity to strengthen their relationships with other countries around the world. Lagarde said that after the Second World War, the Europeans had learned that “you can’t go alone” and they had to sit and work together at the table instead.
She said: “What happens outside is a challenge, but also a great chance of rethinking and deciding whether Europe wants to be a key player,” said Lagarde. “I say that it has talent and it has the means and it has the ambition.”
Despite its optimism that the investment case for Europe has grown, Europe said a “myth” because the internal market was incomplete, also in financial services.
Lagarde disagreed. “Europe is not a myth. It is not a basket housing. It is a fantastic case for transformation. “
