European Central Bank Vice-President Calls for Urgent Financial Integration Amid Global Uncertainty
Luis de Guindos emphasizes the need for a more cohesive European financial framework during a key conference in Brussels.
Brussels – Luis de Guindos, the Vice-President of the European Central Bank (ECB), addressed significant challenges facing the European Union during the Annual Joint Conference of the European Commission and the ECB, emphasizing that unpredictability and uncertainty are likely to persist for years.
He underscored the urgent need for enhanced financial integration within the EU, suggesting that the answer to these challenges lies in advancing 'more Europe'.
De Guindos articulated that a true single market for goods and services remains unattainable due to persistent barriers and divergent national regulations.
He pointed out that the banking union is incomplete, with deposit insurance still managed at the national level, a situation that complicates the separation of banking risks from sovereign debts.
He noted the European Deposit Insurance Scheme (EDIS) has yet to reach an agreement, which he characterized as a significant issue that has hindered progress.
He also highlighted that the EU's capital markets remain fragmented.
According to de Guindos, now is a critical time to address these issues, particularly as inflation aligns with the ECB's target of around 2 percent.
He argued that structural reforms and a growth-oriented fiscal policy are essential to fostering productivity and competitiveness across Europe.
De Guindos pointed to the recent shifts in U.S. economic policy under President Donald Trump as an opportunity for Europe to solidify its own financial foundations.
He emphasized the need for decisive action to strengthen the Economic and Monetary Union, asserting that the European project must be prioritized over national interests.
Furthermore, he warned of the increasing risks tied to over-reliance on non-European powers, signifying a call for a more unified European approach to global financial matters.
In his remarks, he reiterated the need for urgent progress on three key fronts: completing the banking union, integrating capital markets, and fostering a robust single market for goods and services.
The call for financial integration, he stated, is more pressing than ever, particularly in light of geopolitical shifts and the diminishing role of any single country on the global stage.
De Guindos’ statements underscore a pivotal moment for the EU, as it grapples with the complex interplay of economic policies and the growing demand for a cohesive financial strategy.
He underscored the urgent need for enhanced financial integration within the EU, suggesting that the answer to these challenges lies in advancing 'more Europe'.
De Guindos articulated that a true single market for goods and services remains unattainable due to persistent barriers and divergent national regulations.
He pointed out that the banking union is incomplete, with deposit insurance still managed at the national level, a situation that complicates the separation of banking risks from sovereign debts.
He noted the European Deposit Insurance Scheme (EDIS) has yet to reach an agreement, which he characterized as a significant issue that has hindered progress.
He also highlighted that the EU's capital markets remain fragmented.
According to de Guindos, now is a critical time to address these issues, particularly as inflation aligns with the ECB's target of around 2 percent.
He argued that structural reforms and a growth-oriented fiscal policy are essential to fostering productivity and competitiveness across Europe.
De Guindos pointed to the recent shifts in U.S. economic policy under President Donald Trump as an opportunity for Europe to solidify its own financial foundations.
He emphasized the need for decisive action to strengthen the Economic and Monetary Union, asserting that the European project must be prioritized over national interests.
Furthermore, he warned of the increasing risks tied to over-reliance on non-European powers, signifying a call for a more unified European approach to global financial matters.
In his remarks, he reiterated the need for urgent progress on three key fronts: completing the banking union, integrating capital markets, and fostering a robust single market for goods and services.
The call for financial integration, he stated, is more pressing than ever, particularly in light of geopolitical shifts and the diminishing role of any single country on the global stage.
De Guindos’ statements underscore a pivotal moment for the EU, as it grapples with the complex interplay of economic policies and the growing demand for a cohesive financial strategy.
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