Frank Elderson, ECB Vice-Chair, emphasizes the need for deeper European integration through reforms in banking, markets, and policies to address current challenges and foster growth.
Frank Elderson, Member of the ECB Executive Board and Vice-Chair of the Supervisory Board, delivered a keynote speech at the conference “Financing Europe: a new era of strategic investment”.
He highlighted that 85 years ago, Spinelli and Rossi authored the Ventotene manifesto, diagnosing Europe’s issues as fragmentation, division, and nationalism. Today, Europe faces challenges including weak growth, energy dependence, geopolitical tensions, and climate crises. Elderson stressed the importance of addressing root causes, notably fragmentation, which hampers monetary policy, banking efficiency, and competitiveness.
He argued that more Europe—through advancing the savings and investments union, deepening the Single Market, and increasing integration—is essential for Europe’s future prosperity. The speech emphasized the role of banks in supporting the real economy, noting that European banks are stronger, more profitable, and resilient, enabling stability during crises such as the pandemic and energy crises.
However, Elderson pointed out that Europe’s banking market remains largely national due to legal and regulatory fragmentation. This limits risk diversification, economies of scale, and cross-border financing, which are critical for funding large projects like the energy transition requiring €1.2 trillion annually until 2030.
He called for a clear roadmap to complete the Single Market, including treating the banking union as a single jurisdiction, harmonizing rules, and finalizing a European Deposit Insurance Scheme (EDIS). Further integration of capital markets and strengthening economic growth policies are also necessary.
Europe’s diverse banking landscape is a strength, supporting different needs from local retail to investment banking. The ECB advocates proportionality in regulation, with ongoing efforts to simplify supervision, reporting, and decision-making processes. Initiatives include faster approval processes and streamlining supervisory guides.
In conclusion, Elderson urged decisive action to strengthen Europe’s strategic autonomy, remove barriers, and implement tangible reforms. He emphasized the importance of progressing on the savings and investments union, Deposit Insurance Scheme, and Single Market to revitalize growth and competitiveness.
He quoted Altiero Spinelli: “The time has come to act decisively and without delay”.
Thank you for your attention.
