"The risks to economic growth have become more balanced, as the likelihood of downside risks related to tariffs materializing has decreased, thanks to the new trade agreement [between the EU and the United States]. However, risks remain that new trade tensions could affect exports, investment, and consumption," warned Christine Lagarde.

In her regular hearing before the European Parliament's Economic and Monetary Affairs Committee, held on the sidelines of the institution's plenary session in Strasbourg, France, the ECB president indicated that, in recent months, the single currency area faced "a period of greater uncertainty," before the EU and the United States reached a trade agreement this summer on 15% US tariffs on European products. Despite this consensus, "there is always a degree of uncertainty that remains or recurs," she admitted.

"Weak export performance—due to higher tariffs, a stronger euro, and intensified global competition—is expected to hold back growth for the remainder of the year, but the impact of these headwinds should diminish next year," she said.

Furthermore, according to Christine Lagarde, "geopolitical tensions also remain a significant source of uncertainty."

"In contrast, higher defence and infrastructure spending and productivity-boosting reforms could boost growth," she suggested.

For Christine Lagarde, this increased political uncertainty is "a unique opportunity to strengthen the euro's global role," which would bring "tangible benefits" such as its increased use in trade invoices, reduced transaction costs, and protection of European prices against exchange rate volatility.

The ECB estimates that the eurozone economy will grow 1.2% in 2025, 1% in 2026, and 1.3% in 2027.

Inflation has remained around 2%, the percentage set by the central bank for price stability. However, according to Christine Lagarde, "the disinflationary process is over," which will be taken into account in upcoming monetary policy meetings.

The ECB's projections reveal that global inflation should average 2.1% in 2025, 1.7% in 2026, and 1.9% in 2027.