ECB’s Cipollone: Trade policy uncertainty could reduce business investment

European Central Bank (ECB) Executive Board member Piero Cipollone said that “trade policy uncertainty could reduce business investment.”

Additional quotes

Potential for sudden stops in capital flows, payment disruptions and volatility in currency markets requires robust contingency planning.
There are further signs that geopolitical considerations increasingly influence decisions to invest in gold.
Recent increase in trade policy uncertainty could reduce euro area business investment by 1.1% in the first year and real GDP growth by around 0.2 percentage points in 2025-26.
The observed increase in financial market volatility might imply lower GDP growth of about 0.2 percentage points in 2025.