François Villeroy de Galhau: Europe facing a new political economy

Speech by Mr François Villeroy de Galhau, Governor of the Bank of France, at the Asociación de Mercados Financieros Annual Financial Convention, Madrid, 21 November 2016.

The views expressed in this speech are those of the speaker and not the view of the BIS.

Accompanying slides

Mr. President, Ladies and Gentlemen,

Thank you for your invitation. I am grateful for the opportunity to speak here in Madrid today with my friend Governor L. Linde, in the midst of the Spanish financial community, and in a country which has demonstrated its active commitment to the European project since it joined the European Union thirty years ago. We have come a long way in Europe and our common history and past success will help us look ahead in these challenging times. The Brexit referendum in June and Mr. Trump's victory two weeks ago have indeed come as shocks for Europe: both have increased uncertainty and are raising questions about the European identity. How should we, as Europeans, react? Not by less Europe: this would clearly be a mistake if we want to collectively master our own destiny in this new world. But by a better Europe, a more focused and efficient one. In concrete terms, we need to adapt in two ways: first, by building actively on our economic and social assets - among them our single currency and monetary policy; second, by coming together around a few new select priorities - including tackling the current "investment crunch".