Lagarde Pushes for Independent European Payment System to Reduce Foreign Dependence

The European Central Bank is considering phasing out American and Chinese payment systems from the EU market in a strategic move toward financial sovereignty. President Christine Lagarde emphasized that the current reliance on platforms such as Visa, MasterCard, PayPal, and Alipay limits Europe’s control over critical financial infrastructure and increases vulnerability to geopolitical risks.

According to Lagarde, establishing a European alternative is essential for the EU’s economic and political independence. She described this initiative as a necessary “march towards independence,” underscoring the importance of keeping transaction data within the Union and ensuring that European interests remain protected, especially amid rising tensions with global powers like the United States and China.

The creation of a homegrown payment system is not only a matter of security but could also provide economic benefits. By eliminating the need to pay transaction fees to foreign corporations, Europe could redirect those funds into developing local fintech solutions. Lagarde added that such an initiative would align with broader EU goals, including the Capital Markets Union and plans for a fiscal union, ultimately fostering deeper economic integration.

On the technological front, Europe has already begun making strides. The Wero system, a joint effort by major EU banks, is currently under development. Additionally, Poland’s BLIK platform is expanding with the aim of becoming a continent-wide standard. These efforts reflect a growing desire to reduce dependence on external service providers and shape the digital economy on European terms.

Lagarde concluded by warning that reliance on foreign payment systems could prove dangerous if diplomatic ties fray, urging Europe to take control of its digital financial future.