Lagarde: Getting Ready for Geoeconomic Division

Shifting Perspectives on Trade and Security

The fact that a central banker now addresses supply chain concerns at the Munich Security Conference highlights just how dramatically our world has evolved. Ten years ago, such a scenario would have seemed out of place. Today, however, it is widely understood that trade is no longer solely an economic matter—it is also a crucial aspect of global security.

Over the past several decades, nations have become increasingly interconnected through complex networks of international trade. While this interdependence was once viewed as a stabilizing force, it has now revealed new vulnerabilities. Events like the pandemic and the strategic use of economic dependencies have exposed the risks inherent in these global ties. Experts within the Eurosystem have conducted extensive analyses to better understand these dynamics.