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Lagarde says euro-area economy is resilient, digital euro imminent
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European Central Bank President Christine Lagarde said the euro-area economy remains resilient despite persistent inflation, pointing to September’s 3.8% inflation rate as largely driven by high energy costs. She added that the ECB expects those energy pressures to ease next year. Lagarde spoke at the International Monetary Fund Annual Meetings on Saturday.
Lagarde cautioned that an energy shock will likely keep euro-area inflation above the ECB’s target through the first half of 2027. She argued that a measured policy response remains appropriate. The ECB has faced calls to adjust rates as inflation lingers above its 2% goal.
In the payments arena, Lagarde confirmed the ECB is preparing a digital euro. The central bank wants to complement cash with a digital equivalent for day-to-day transactions. She said the digital euro will stimulate innovation and competition in retail payments.
“The digital euro will further stimulate innovation and competition in retail payments,” Lagarde said. It will ensure that public and private solutions coexist, she added. That coexistence, she said, underpins Europe’s strategic autonomy in payments.
The ECB has also launched Pontes, a system for settling wholesale tokenized asset transactions in central bank money. Cointelegraph reported on Sept. 21 that the platform offers an alternative to private settlement assets like stablecoins. The system initially provides core services, with full implementation expected by 2028.
The digital euro project has drawn attention to accessibility standards. The ECB has said its digital euro app will exceed EU accessibility requirements. Lagarde’s remarks signal that the central bank is balancing inflation management with payment innovation.
