Lagarde urges EU to drop veto power, seize chance for ‘global euro’

Frankfurt (dpa) – European Central Bank President Christine Lagarde has warned that the European Union too often paralyses itself by allowing individual member states to block urgently needed reforms.

“A single veto must no longer be allowed to stand in the way of collective interests of the other 26 member states,” Lagarde wrote in an opinion piece published in the Financial Times on Tuesday.

She called for more frequent use of qualified majority voting in critical areas, arguing it would “enable Europe to speak with one voice.” Currently, major EU decisions require unanimous approval.

Lagarde said the “profound shift in the global order” presents Europe with a chance to seize greater control over its future – and to pursue the vision of a “global euro.”

“For the euro to reach its full potential, Europe must strengthen three foundational pillars: geopolitical credibility, economic resilience and legal and institutional integrity,” she wrote.

Lagarde also urged the EU to leverage its position as the world’s largest trading bloc to secure new trade agreements. Last month, in a speech in Berlin, she advocated for strengthening the international role of the EU’s common currency — a move she said would benefit the broader eurozone economy. (17 June)