(Bloomberg) -- The election of Donald Trump as the next US president raises risks and uncertainty for the global economy and should encourage Europe to address its weaknesses, Bank of France Governor Francois Villeroy de Galhau said.
The president-elect’s policies would fuel deficits and drive up long-term borrowing costs, the European Central Bank policymaker said at the Jeco economics conference in Lyon, France.
More protectionism with increased tariffs would also fuel inflation in the US and harm growth elsewhere in the world, he said.
“The result of the American election increases both risks for the global economy and the necessity for Europe to rally together,” Villeroy said.
The central banker said the European Union must do more to catch up on technological investment and overcome its political divisions.
“The American election should sound a wakeup call after a long period of numbness,” Villeroy said.
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