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Christine Lagarde dropped some real talk Friday about Europe's economy being stuck in the past. The ECB president didn't hold back, saying the continent's prosperity model is "geared towards a world that is gradually disappearing."
Her main point? Europe's classic export-heavy growth strategy has shifted from being a strength to an actual weakness. What worked for decades—relying on shipping goods globally—doesn't fit the current economic reality anymore.
The "old growth model" comment hits different when you consider how much geopolitical and trade dynamics have shifted. Export dependence might've been Europe's thing, but Lagarde's basically calling it a vulnerability now. Big structural rethink ahead for the EU economy.