The session will first assess the economic causes of the recent financial turmoil on the EU financial industry and discuss solutions to get out of the financialization trap. Then the session will focus on the impact of the economic environment on the EU financial industry.
Speakers will also be invited to express their views on how this environment and protectionist tendencies (Inflation Reduction Act) impacts the EU open strategic autonomy project and the possible way forward.
Points of discussion
- What lessons can be drawn from the collapse of US regional banks and the takeover of Credit Suisse by UBS on the global and EU banking system, its regulation and supervision?
Europe has been especially watchful in implementing the Basel rules regarding the management interest rate risks. The problem is on the other side of the Atlantic where the regulatory and the supervisory environment is not the same: Should the Basel regime be applied to all banks? How to avoid that differences in transposition of this regime allow the emergence of systemic contagion risk from one region of the world to another?
- What are your recommendations to get out of the trap of financialization and free the forces of savings and investment that condition our future?
What were the effects of this massive indebtedness on productivity gains, productive investments and economic growth in Europe during the past 20 years?
What are the economic and financial vulnerabilities created by this record debt? Are they addressed appropriately at the EU and national levels? How to increase productivity gains and potential growth with less debt?
- Is the return of persistent high inflation over the last two years, the slowdown in economic growth, over indebtedness in some EU countries, the rise of nominal interest rates but negative real interest rates – calculated using year on year headline or core inflation, a source of opportunities or weaknesses for the European financial industry?
- To what extent does the current economic environment, marked by strong protectionist tendencies notably in the United States and China, constitute an opportunity to relaunch Europe’s strategic autonomy in the financial sector?