“When you think about it, many of our digital payments right now, like online shopping, or when we use a card or mobile phone, all rely on non-European infrastructures,” Christine Lagarde stated in an interview with Ireland’s radio program ‘The Pat Kenny Show’.
The President of the European Central Bank (ECB) highlighted examples such as Visa, Mastercard, PayPal, or Alipay, and added, “Where do they come from? Either the U.S. or China. The entire mechanical infrastructure that enables credit and debit payments is not a European solution,” she emphasized.
When questioned by Irish journalist Pat Kenny about whether this means that whenever a card or mobile payment is made in the European Union (EU), the information “leaves” the EU and goes to the U.S. or China, Lagarde replied, “Absolutely.”
She quickly noted that these financial companies comply with EU regulations. However, Lagarde argued for reducing this “vulnerability” and ensuring the presence of a domestic alternative within European territory, as “you never know.”
Throughout the interview, Lagarde also warned that the consequences of U.S. tariffs are “completely negative for the economy,” though she refrained from offering her opinion on how the EU should respond to these tariffs, stating it is something “for political leaders to decide.”
“Our job at the central bank is to anticipate and explain to them what the consequences will be in terms of economic impact, because it will always be negative worldwide,” she added.
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