During the recent press conference at the European Central Bank, President Christine Lagarde and Vice-President Luis de Guindos made a resounding statement on the critical importance of free trade for the European Union's economy. They highlighted that any escalation of trade barriers and tariffs would be detrimental to the EU.

"Trade is undeniably a vital component among the drivers of economic activity moving forward. Consumption and investment are key, but trade plays an equally significant role. Any constraints, uncertainties, or impediments to trade have repercussions for a highly open economy like that of the European Union—both within the EU and with the global community. Any reinforcement of barriers, tariffs, or additional obstacles to international trade represents a setback."

The ECB's call to prevent further tightening of market protection and tariffs is commendable. It is hoped that other EU institutions, particularly the German government, will adopt a similar stance and refrain from advocating for increased market protection measures.

The ECB's expertise in such matters surpasses that of professional politicians, and it is advisable for policymakers to heed their advice. At the national level, the Federal Ministry for Economic Affairs and Climate Protection holds a crucial responsibility in this regard, especially in listening to the voices of small and medium-sized enterprises.

Encouraging Economic Signals from the US, EU, and UK: Resilient Economies

Recent economic indicators from the USA, Eurozone, and UK indicate the resilience of the global economy. In the USA, a 0.4% increase in retail sales in September signals sustained consumer purchasing power, coupled with a significant decrease in initial jobless claims. This combination of stable demand and a robust labor market supports the optimistic outlook of a 'soft landing', avoiding a recession.

Positive Signs from the Eurozone

The Eurozone is also displaying positive signs, with inflation dropping to its lowest level since 2021. This decrease provides the European Central Bank with flexibility to adjust its monetary policies accordingly. President Lagarde highlighted the progress in inflation reduction, further bolstering financial markets.

Record Job Growth in the UK

In the UK, declining inflation rates and a record number of new jobs indicate economic stability. With 373,000 new jobs created and a decreasing unemployment rate, the British economy is experiencing a level of strength not seen in years. Decreasing inflation also offers room for the Bank of England to consider reducing the base rate, further supporting economic growth.