During a recent summit, Italian Prime Minister Giorgia Meloni expressed strong support for European Commission President Ursula von der Leyen’s measured approach in dealing with U.S. tariffs. Meloni highlighted the importance of avoiding a retaliatory trade war that could have detrimental effects on the European economy. She warned against automatic reactions, stressing the potential risks of escalation.
According to Meloni, the imposition of tariffs could trigger an inflationary surge, which in turn would likely prompt the European Central Bank (ECB) to raise interest rates. “Higher ECB rates could slow down growth, which is a concern,” Meloni said. Her caution was underscored by remarks from ECB President Christine Lagarde, who addressed the summit with a stark warning. Lagarde pointed out that retaliatory tariffs could reduce EU growth by up to 0.5%, with a contraction of as much as 0.3% being a likely scenario.
These statements underscore a growing concern within the EU leadership that an aggressive trade response could harm the bloc’s already fragile economic recovery. Meloni, a prominent voice in European politics, emphasized the need for a balanced and strategic approach to avoid exacerbating the economic challenges that Europe faces.
In light of the current trade tensions, the summit discussions underscore the delicate balance between protecting European interests and avoiding further economic strain. With global inflationary pressures and slowing growth, Meloni’s remarks reflect a cautious and thoughtful strategy aimed at safeguarding the European economy.
These concerns align with comments made by Christine Lagarde, as reported during her speech at the summit, where she outlined the potential economic fallout from tariff escalations.
Giorgia Meloni (AP pic) Via FMT Creative Commons 4 0
