Fabio Panetta: The future of Europe's economy amid geopolitical risks and global fragmentation

Text of the Lectio Magistralis by Mr Fabio Panetta, Governor of the Bank of Italy, on the occasion of the conferral of an honorary degree in Juridical Sciences in Banking and Finance by the University of Roma Tre, Rome, 23 April 2024.

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

I am deeply honoured to receive this honorary degree in Juridical Sciences in Banking and Finance from the University of Roma Tre.

The profound links between law and economics have been studied by eminent scholars.

Laws and legal institutions shape economic interactions, aligning them with the needs and aspirations of citizens. At the same time, economic transformations – especially when accompanied by technological progress – are powerful drivers of change in legal norms.

Law is therefore an essential part of any economist's cultural and professional playbook.

My knowledge of the legal system and my belief in its importance for the economy and finance stem from my experience as a central banker. As a civil servant, over the years I have dealt with the implementation of monetary policy, the safeguarding of financial stability, and the supervision of intermediaries. I can thus safely say that I have always been immersed in economic, banking, and financial law.

Along the way, I have had the privilege of serving two prestigious institutions – Banca d'Italia in the first place, and then the European Central Bank – which have contributed to my understanding of the links between law and economics. Today I would like to express my sincere gratitude to all those who work in these institutions for the loyal cooperation and friendship they have shown me over the years.