Munich. Peter Orszag, CEO of US investment bank Lazard, has urged Europe to seek greater independence from the United States. "European politicians must ask themselves how much volatility from Washington they are willing to endure," Orszag told Handelsblatt (Tuesday edition).
Lazard CEO warns Europe must cut US dependence amid rising risks
He welcomed Canadian Prime Minister Justin Trudeau's proposal to form an alliance of middle powers. "Why shouldn't the EU join the Asian free trade zone? In a world fracturing into power blocs—the US, China, and then Russia, Iran, and North Korea—Europe must not be left on the sidelines," Orszag said on the margins of the Munich Security Conference.
Lazard is known for its strong focus on geopolitics and regulation. Orszag himself transitioned from Washington to the financial sector, having served under Democratic Presidents Barack Obama and Bill Clinton. Reflecting on the Trump administration, he warned of the risks tied to Trump's "discretionary state capitalism."
Under President Donald Trump, the US government has taken stakes in a number of companies—a move unusual for America, where there are no clear rules, and decisions rely more on "individual discretion than a comprehensive framework," Orszag noted. "In the long run, this approach leads to more lobbying and the risk of misconduct by firms that stand to lose heavily if they fall out of favor." He described the system of checks and balances as weakened. "Overall, it's fair to say there are currently fewer oversight mechanisms than many would like, but that doesn't mean they don't exist at all," he clarified.
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