At Paris Peace Forum, Lagarde hails European autonomy as shield against coercion

A digital euro, homegrown AI and what’s at risk if countries don’t establish economic sovereignty — European Central Bank President Christine Lagarde and other leaders called for strategic independence.PARIS (CN) — On a gray Wednesday morning against the backdrop of the Eiffel Tower, outgoing European Central Bank President Christine Lagarde made her way through a crowded hall, shaking hands as she approached a spotlit podium.“Sovereignty has traditionally been a legal concept, a state authority over its own territory recognized by others,” she said in her opening speech at the Paris Peace Forum. “And it can take the form of defense, capacity to levy tax, capacity to print money — but it’s generally based on a combination of trust and fear.”Europe’s need for independence has pervaded the continent’s politics since U.S. President Donald Trump took office again, when longstanding alliances entered an era of uncertainty.Artificial intelligence and new forms of cyber sabotage — like the Oct. 11 attack on French supermarkets that the country has attributed to Iran, which denies involvement — are heightening the urgency to develop self-sufficient systems.Sovereignty was a central theme at the forum, which gathered hundreds of heads of state, executives and NGOs Tuesday and Wednesday in the Palais de Chaillot. Security was tight; agents asked attendees to take a sip from any drinks in their possession before entering the perimeter.Panelists at the Paris Peace Forum on Nov. 11, 2026. (Lily Radziemski/Courthouse News)Lagarde, who announced last month she will step down in February, described how recent shifts in the global geopolitical order have triggered a European reckoning on the risks of economic coercion.“We paid a heavy price for depending too much on Russia for our energy, and China has shown that it is willing to restrict export of critical raw materials, rare earths amongst others,” she said. “And this summer, even the United States restricted our access to the most advanced artificial intelligence model, [Claude] Mythos.”She urged the continent to use its roughly 450 million citizens as collective market leverage. She said Europe must develop independent AI innovations for its own security. Europe will also roll out a pilot of a digital euro in 2027 as it works to reconfigure its monetary infrastructure.“It’s not a very sexy topic. … It’s nuts and bolts and pipes, but it’s critically important if we’re going to have sovereignty and if we don’t want anybody to suddenly say, ‘You know what, I don’t want you to move money on my railroads,’” Lagarde said. “So we have to build that, and we’re moving fast … years ahead of the U.S., ahead of the Bank of England, ahead of all those other central banks.”European Parliament member Sandro Gozi warned that autonomy shouldn’t be confused with nationalism or isolationism, though far-right agendas often fuse the concepts. Continuing to watch the consequences of Brexit unfold roughly 10 years after the referendum proves his point, he said.“Nationalist forces in Europe and the U.K. talk about independence … but they organize submission,” he said Wednesday. “Any decision which brings you back to 19th century national borders makes you less sovereign, less independent — that was the case with Brexit.”Lagarde agreed. When the U.K. voted to leave the European Union, she was managing director of the International Monetary Fund, or IMF, and Mark Carney, now prime minister of Canada, was governor of the Bank of England.“The two of us, with really solid analysis, with great economists on our side, said … British people will suffer as a result,” she said. “Was our voice heard despite the fact that Mark Carney was the most good-looking central bank governor of the world? That I was the first woman to be managing director of the IMF? No.”Benjamin Haddad, the French minister delegate for European Affairs, stressed the future of strategic autonomy should be rooted in cooperation.“I don’t think that you’re stronger and you have more control over your destiny when you isolate yourself from your key friends and partners on all the key issues,” he said. “Prosperity, technology, security or tackling illegal migration — you’re stronger when you cooperate closely with your partners and you find common solutions.”Subscribe to our free newslettersOur weekly newsletter Closing Arguments offers the latest about ongoing trials, major litigation and rulings in courthouses around the U.S. and the world, while the monthly Under the Lights dishes the legal dirt from Hollywood, sports, Big Tech and the arts.Additional Reads