In a speech in Florence, European Central Bank President Christine Lagarde argued that Europe has reached a point where existing governance and the unfinished internal market are limiting its ability to act decisively to reduce vulnerability to global shocks. Framing the message through a historical analogy with Brunelleschi’s dome, she presented the challenge as one of using existing “materials” more creatively rather than pursuing revolutionary institutional change. Lagarde pointed to the scale of recent shocks over the past five years, including the worst pandemic since the 1920s, the highest US tariffs since the 1930s, the deepest energy shock since the 1970s and the most devastating land war on European soil since the 1990s. While emphasising Europe’s resilience, she characterised EU decision-making as too slow and complex and too exposed to Member State vetoes, and proposed expanding qualified majority voting through Treaty “passarelle” clauses, creating “28th regimes” that apply common European rules without waiting for full convergence of national systems to help innovators scale, and deepening cooperation among groups of countries willing to move faster.
European Central Bank 2025-10-29
European Central Bank President Lagarde calls for faster EU decision-making using Treaty tools and 28th regimes
European Central Bank President Christine Lagarde, in Florence, noted Europe's governance and incomplete internal market hinder its response to global shocks. She advocated for creative use of existing structures, suggesting expanded qualified majority voting and "28th regimes" to streamline EU decision-making. Lagarde emphasized the need for faster action amidst global challenges like pandemics, tariffs, energy shocks, and conflicts.