Central Banks

ECB’s Lagarde Pushes Back Against Taxes to Stop Capital Outflows

Christine Lagarde at the Munich Security Conference, on Feb. 15.

Photographer: Alex Kraus/Bloomberg

European Central Bank President Christine Lagarde said creating incentives for investments in Europe is a better approach to prevent capital outflows to other regions than imposing taxes.

Current market developments signal that investors are interested in allocating more capital in Europe, Lagarde said Sunday during a panel discussion at the Munich Security Conference.