The President of the European Central Bank, Christine Lagarde, expressed concern that Europe is falling behind the United States in the technological race, reports Interfax-Kazakhstan.
"The decline of Europe's position in technology has become more apparent over the past year," she stated during an event in Frankfurt. "The technological gap between the US and Europe is now evident."
Christine Lagarde noted that accelerating technological development in the EU can be achieved by strengthening the European capital market through greater integration. In her view, financing for innovation can be attracted by changing individuals' approach to investing. Specifically, Europeans are very conservative, holding about one-third of all their savings in deposits and cash, while in the US this figure is only 10%. If Europeans follow the example of Americans, it could free up around €8 trillion for "long-term market investments," said Christine Lagarde.
"The geopolitical situation has also become less favorable given the increasing threats to free trade around the world," added the ECB head. "The EU economy, being the most open among the leading economies globally, is more vulnerable to these risks than others."