ECB’s Lagarde Urges Defense and Infrastructure Spending to Spur Euro Growth

European Central Bank President Christine Lagarde said the euro-area economy needs urgent reinforcement and called for stepped-up public and private investment in defence and infrastructure. Speaking on 24 July, she argued that channeling resources into these sectors would help lift growth and make the currency bloc more competitive, productive and resilient. Lagarde’s remarks add to a growing policy debate in Europe over how to counter slowing momentum and geopolitical risks. While she did not outline specific spending targets, her comments highlight a shift in emphasis toward strategic investments rather than solely relying on monetary tools to support the recovery.