Reuters Econ World Interview with European Central Bank chief economist Philip Lane
Nov 26, 2025
Philip Lane, chief economist of the European Central Bank, digs into the eurozone's steady economic outlook amid potential pitfalls. He discusses the resilience of labor markets in the face of tariffs and how global trade shifts, particularly with China, reshape supply chains. Lane emphasizes the need for reforms to counter stagnant growth, highlighting disparities between countries like Germany and Spain. He also explores the implications of U.S. fiscal policy and the emerging digital euro, stressing the importance of geopolitical stability for economic security.
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Personal Memory Of Europe's Labour Market Shift
- Philip Lane recalls earlier European eras marked by low unemployment to contrast today's low‑six percent rates.
- He emphasises that low unemployment improves the economy's 'feel good' factor.
Eurozone's Resilient Post‑Shock Position
- The euro area now combines low unemployment, steady growth, and inflation near target, which reduces macroeconomic misery.
- Philip Lane says this resilience matters after shocks like the pandemic and the Ukraine war.
Tariff Impacts Often Lag And Are Contained
- Tariffs' full effects often appear with a lag because firms front‑load inventories and adjust supply chains.
- Lane notes US tariffs matter but Europe's domestic demand dominates overall outcomes.