IMF Chief Tells Europe’s Davos Elites: Let’s Be More Like the U.S.

As the European economy continues lagging behind the United States, the head of the International Monetary Fund (IMF) told the Davos elites the time has come for Europe to collectively look across the Atlantic and follow the U.S. lead as it grows in confidence daily under the leadership of President Donald Trump.

There was much gloom in Europe losing its competitive edge at the World Economic Forum in Davos this week, with the European Union racing to act to catch up with the United States, AFP reports.

At the forum’s closing panel, focused on the global economic outlook, IMF managing director Kristalina Georgieva suggested a change in attitude to tackle the issue is needed as Trump settles into the White House once more.

“The United States has a culture of confidence. Europe has a culture of modesty,” Georgieva said. “My advice to my fellow Europeans is more confidence. Believe in yourself and most importantly, tell others that you do.”

European Central Bank President Christine Lagarde warned Europe needed to keep its “huge amount” of talent at home and raised the alarm for its leaders to act in the wake of a resurgent Trump America.

“So if the European leaders can actually get their act together, respond to this wake-up call and existential threat that can be identified, then I think that there is a huge potential for Europe to respond to the call,” said Lagarde, herself a former IMF chief.

In front of hundreds of Europe’s gathered business and political elites in his hotly awaited virtual speech on Thursday, Trump criticised Europe, especially over the United States’ trade balance gap.

“I’m trying to be constructive because I love Europe,” Trump said. “They do treat the United States of America very, very unfairly with the bad taxes.”

Lagarde said it was true there had to be negotiations with the United States.

“There has to be trade relationships that are organised in a framework that is giving confidence to the partners. It cannot be about removing all the rules, ignoring the institutions,” she said.

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