Europe’s economy is geared towards a disappearing world, says ECB’s Lagarde

Christine Lagarde said Europe’s policymakers had allowed its weaknesses to ‘erode growth quietly’. Photograph: Heiko Becker/Reuters

Europe’s economy is “geared towards a world that is gradually disappearing”, according to a warning from Christine Lagarde that the EU needs reforms to spur growth.

The president of the European Central Bank (ECB) said the EU’s dependence on international trade had left it vulnerable, as major partners had turned away from the trade that made the bloc’s exporters wealthy.