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

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.

“I’m more in favor of incentives than taxes,” Lagarde said. The overall sentiment is currently positive for Europe as “the money is coming in.”

Lagarde made the comments amid increasingly urgent calls from ECB officials, European governments and corporate leaders to improve the European Union’s competitiveness amid ...