Christine Lagarde: Interview with La Croix

What happened: In a La Croix interview, ECB President Christine Lagarde said the main threat to the European economy is the energy crisis tied to the conflict in the Middle East, and that Europe's three long standing pillars, cheap Russian energy, the Chinese export market and the US security umbrella, are being shaken. Key numbers: Euro area growth expected at 0.9% this year Why it matters: Lagarde said the ECB must keep a supply shock from feeding durably into inflation, and noted political uncertainty and budget deficits weigh on investment, with public borrowing costs possibly rising.

In a La Croix interview, ECB President Christine Lagarde said the main threat to the European economy is the energy crisis tied to the conflict in the Middle East, and that Europe's three long standing pillars, cheap Russian energy, the Chinese export market and the US security umbrella, are being shaken.

Lagarde said the ECB must keep a supply shock from feeding durably into inflation, and noted political uncertainty and budget deficits weigh on investment, with public borrowing costs possibly rising.