Europe must build own AI or risk getting cut off by US or China, says ECB’s Lagarde
ECB President Christine Lagarde has called on Europe to develop its own AI models and expand domestic data center capacity, arguing that dependency on US or Chinese AI technology gives those trade partners unusual leverage over Europe in negotiations.
Why this matters: This is about who holds the off switch. If Europe's critical infrastructure, public services, or financial systems run on AI controlled by foreign companies, those companies — and their governments — have real power in a crisis or a trade dispute. That is not a hypothetical. Lagarde is essentially saying Europe is already in a position where an adversary could threaten to pull the plug. Building domestic AI is one answer. The harder question is how fast Europe can get there, and what data and privacy tradeoffs come with building fast.
Who should care: General readers · AI governance · Policy
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