Lagarde: Eurozone Economy Resilient in Q2 Despite Energy Shock

Lagarde's read matters less as a growth story than as a signal that the energy shock has not, so far, forced the kind of policy trade-off between supporting activity and containing inflation that would split the Governing Council. The emphasis on a single-currency package and structural reforms shifts the conversation toward fiscal and supply-side coordination, areas where the ECB has limited reach. Whether the resilience she describes extends into the third quarter, and whether it changes the urgency around that package, is the open question.