François Villeroy de Galhau: Europe's growth gap - reconciling Keynes and Schumpeter

High-level lecture by Mr François Villeroy de Galhau, Governor of the Bank of France, at the College of Europe, 31 March 2021.

Central bank speech  | 
01 April 2021

Dear students, Professors, Ladies and Gentlemen,

I am delighted to be with you today, and I extend my warmest thanks to Professor Béatrice Dumont for her kind welcome speech. For obvious and unfortunate reasons, I was unable to come physically to the magnificent city of Bruges, this architectural jewel of the Middle Ages. Bruges is also a highly significant place for a central banker, as it was the birthplace of stock markets in Europe, in the 14th century.

I also stand before you as a committed European, born and raised at the Franco-German border, present in Maastricht 30 years ago, and the College of Europe reflects this fruitful European spirit that I particularly cherish. What I want to do today is to avoid "langue de bois". In these troubled times, we need to speak "truthfully" before acting positively. In this respect, I would like to address the following issue: why is Europe lagging economically behind the United States? In order to find the right cure, we first have to elaborate on the right diagnosis.