European Central Bank chief Christine Lagarde warned Friday the region was increasingly "vulnerable" to shocks like US tariffs and is lagging behind in areas that will drive growth such as AI.

The continent must urgently speed up its integration and overhaul a model of export-led growth that has faltered amid mounting geopolitical turmoil, she said in a speech to a banking conference.

"Europe has become more vulnerable," the head of the central bank for the 20-nation eurozone said in Frankfurt, pointing to the region's "dependency on third countries for our security and the supply of critical raw materials".

"Global shocks have intensified, with rising US tariffs, Russia's invasion of Ukraine and stiffening competition from China," she added.

Europe's domestic market meanwhile had "sto

See Full Page