Luis de Guindos, ECB Vice-President, discusses Europe’s resilience, geopolitical risks, and priorities for strengthening the EU amid current global uncertainties.
Luis de Guindos, Vice-President of the European Central Bank (ECB), delivered a speech at the Ragnar Nurkse Memorial Lecture organized by Eesti Pank in Tallinn. He highlighted Europe’s resilience in facing recent crises, including energy shocks and inflation, and emphasized the importance of deeper integration within the EU.
He noted that the euro area grew by 1.5% in 2025, supported by domestic demand, low unemployment, and investment. Despite geopolitical uncertainties, such as the war in the Middle East and shifts in US foreign policy, the euro area’s financial sector remains resilient, with limited direct exposure to the conflict.
De Guindos discussed the impact of the Middle East conflict on energy prices and inflation, which is expected to rise above 2% in the near term. The ECB maintains a data-dependent approach, with interest rates unchanged, and monitors the evolving outlook closely.
The speech outlined four priorities for strengthening Europe: completing the Single Market, building a genuine savings and investments union, securing technological sovereignty, and simplifying regulations. He emphasized the need for greater internal cohesion, strategic autonomy, and resilience to external shocks to ensure sustainable growth and stability.
He concluded by referencing Ragnar Nurkse’s work on stability and prosperity, stressing that Europe’s future depends on collective efforts to address vulnerabilities and foster long-term growth.
