"ECB President Urges Single Market Watchdog for EU's Capital Union Amid Fragmenting Global Economy"

European Central Bank President Christine Lagarde warns that the global economy is showing signs of fragmenting into competing blocs, with Europe facing challenges such as deglobalization, demographics, and decarbonization. Lagarde emphasizes the need for massive investment in a short period of time to address these shocks, including reassessing supply chains, deploying new technologies, and advancing the green transition. She estimates that the planned green transition in Europe will require an additional investment of 620 billion euros per year until the end of the decade, along with 125 billion euros per year for a digital transition. Lagarde highlights the importance of the proposed capital markets union to support these investments, as governments have high debt levels and European recovery funding will end in 2026.