The worst of the economic crisis caused by the coronavirus pandemic is probably behind us, according to European Central Bank president Christine Lagarde.
"We probably have passed the lowest point," she said on Friday, speaking at the online Northern Light Summit.
"I say that with some trepidation because of course there could be a second wave," she cautioned.
- European Central Bank rules out rapid economic recovery
- European Central Bank may consider setting up 'bad bank'
The world might not go back to the status quo, according to Lagarde. Recovery "is going to be incomplete and might be transformational," she said, with hard-hit industries emerging "in a different shape" than before.
"It is likely that trade will be significantly reduced. We need to be extremely attentive to those that are most vulnerable,” she added.
EU leaders will meet in Brussels on 17 and 18 July to try to reach an agreement on the European economic recovery plan, including the creation of a €750 billion recovery fund financed by massive borrowing.
However, Lagarde warned that she didn't think they would reach an agreement already in July, predicting intense negotiations to come.
The Brussels Times