Larry FinkCEO of $BLKcalled at a panel discussion at the #wef2025 the EU to open up the capital market & banking union to make Europe a single market.
"Europe is currently a myth. A beautiful myth, but it doesn't work. It doesn't work compared to the strength, innovation and entrepreneurship of the US and its ability to adapt quickly. If you look at China, you also see a spirit of innovation and development. Europe needs to catch up here"
Christine LagardePresident of the ECBreplied:
"Europe is not a myth or a lost cause. Europe is a great example of transformation. Nevertheless, I agree that it is not currently functioning as a single market."
Fink went on to explain that Europe is currently suffering from an overly pessimistic perception:
"I think it's time to invest in Europe again. There are risks in every economy, but Europe is underestimated."
On the US economy, he said:
"The US economy is bigger than any single political party or president. If we were to activate private capital faster and with less regulation, it could reduce U.S. dependence on fiscal problems."
On the subject of interest rates Finkthat the FED may still have room to cut interest rates. He predicted that the yield on 10-year US government bonds theoretically to 5,5% could rise, although it currently stands at around 4,64% currently stands at around 4.64%.
Christine Lagarde:
"I would like to emphasize what Europe is strong in. If we look at the current figures: The debt ratio is around 80% of GDP, the deficit of the eurozone as a whole is around 3%. Inflation is currently 2.4%, with strong confidence that it will continue to fall. Interest rates are at 3%. Europe has enormous talent, huge savings and a wake-up call that is driving Europeans to act. If European leaders take this wake-up call seriously, recognize the existential threats and act accordingly, then Europe has enormous potential."
She agreed with Fink with regard to the banking union:
"We need a banking union and a capital markets union. We need to keep talent and savings in Europe and perhaps also attract talent from other parts of the world."
Moderator Sara Eisen posed the question of whether President Trump's statement that the EU is treating the USA unfairly in trade is true.
Lagarde:
"One thing Europeans have learned since the Second World War is that you cannot act alone. Cooperation, mutual respect and understanding are essential. To achieve this, you sit down at a table and work together. Trade relations must be organized within a framework that creates trust between the partners. It cannot be about abolishing all rules or ignoring institutions."
Kristalina GeorgievaManaging Director of the International Monetary Fund:
"We see that countries are increasingly trading with politically like-minded states. But the most successful countries are those that work with everyone."
Tharman Shanmugaratnam, President of Singapore:
"Whether it is tariffs, subsidies or the current forms of industrial policy, these developments are driven more by political calculations than economic considerations.
driven by political calculation rather than economic considerations."
https://m.youtube.com/watch?v=k7rBsMrx094&pp=ygUNTGFnYXJkZSBGaW5rIA%3D%3D