Finland’s ECB Governing Council member Olli Rehn highlighted growing risks to Europe’s economic outlook with the uncertainty over trade policy as a key downside factor.
Rehn warned that Europe must be prepared to respond to potential trade conflicts with the US, emphasizing that while “negotiation is preferable,” EU’s position could be strengthened by demonstrating readiness to implement “countermeasures” against any US tariff threats.
Rehn also provided clarity on ECB’s monetary policy direction, stating it is now clearly leaning toward further easing. However, the “speed and scale of rate cuts” will remain data-dependent and decided at each meeting based on a thorough assessment of economic developments.
