The Event will be live streamed on this page
What has been the position of Europe’s leading financial centres, its ‘financial capitals’, since the globalisation of the early twentieth century? Financial centres are the nerve centres of international finance, a source of wealth and power. Over the last hundred years, most leading international financial centres have been located in Europe –within a changing international balance of power. This paper considers the development of Europe’s international financial position, from the height of the pre-1914 days, when it was the ‘banker of the world’; to the lows of the late 1940s, when it required American assistance; and to the resurgence of its financial power at the turn of twenty-first century in an increasingly multipolar financial environment. The paper addresses three main issues. First: how to explain the rise, persistence and fall of Europe’s financial capitals? Second: what has been the degree of competition, cooperation and integration of Europe’s financial capitals, at both global and European levels? And third, what can the past tell us about the future of Europe’s financial position in the twenty-first century?
The Schuman Centre honours its first Director, Yves Mény, with its annual lecture to mark the beginning of the academic year and to launch the RSCAS Seminar Series. This second Yves Mény Annual Lecture will be given by Youssef Cassis, Professor of Economic History and Joint Chair RSCAS/History and Civilization Department.
Organise: Brigid Laffan – EUI – Robert Schuman Centre for Advanced Studies and Global Governance Programme
Speaker: Youssef Cassis
RECORDING OF THE EVENT
16:30 | Introduction by Vincenzo Grassi, EUI Secretary General and Brigid Laffan, RSCAS EUI
16:50 | Introduction by Andrea Simoncini, UNIFI and Fondazione CR Firenze
17:00 | Lecture by Patrick Honohan “Central Banking in Europe today: Over-mighty or Under-powered”
17:45 | Q&A, moderated by Giorgia Giovannetti, UNIFI and EUI
18:30 | Reception for all participants
The ECB and other European Central Banks have never looked so powerful. They have driven interest rates below zero and purchased trillions of euros of government and other bonds. They have become more active in bank supervision – a function now also centralised for the euro zone in the ECB. Moreover, a much broader toolkit than used in past decades is being energetically employed. Having tested the limits of their mandates, the ECB and other European Central Banks are now unlikely to return to the light touch policy of the 1990s. However, some puzzles remain:
- Why is inflation in the euro area – the main statutory objective of the ECB – still below target?
- Why were these tools not employed earlier in the crisis?
- Is there more that could be done now, such as “helicopter money”; and if so, should it be used?
This lecture will explain how the crisis has gradually drawn the ECB into policy areas and instruments for which its mandate is less explicit, though no less real. The Frankfurt-based Bank has, in the past ten years, changed more than most central banks. Like other major central banks, it has had to innovate in response to developments in globalization, in commodity price fluctuations and in unusually large fiscal deviations. But in doing so the ECB has been faced with unique challenges of political legitimacy as well as of economic analysis in the multi-country currency union.
Honorary Professor of Economics at Trinity College Dublin; Nonresident Senior Fellow at the Peterson Institute for International Economics
Former Governor of the Central Bank of Ireland
Patrick Honohan was Governor of the Central Bank of Ireland and a member of the Governing Council of the European Central Bank from September 2009 to November 2015. He is an honorary professor of economics at Trinity College Dublin and a nonresident senior fellow at the Peterson Institute for International Economics, Washington, DC. Previously he spent twelve years on the staff of the World Bank where he was a Senior Advisor on financial sector issues. During the 1990s he was a Research Professor at Ireland’s Economic and Social Research Institute. In the 1980s he was Economic Advisor to the Taoiseach (Irish Prime Minister) Garret FitzGerald. He also spent earlier spells at the Central Bank of Ireland and at the International Monetary Fund. A graduate of University College Dublin, he received his PhD in Economics from the London School of Economics in 1978. He has taught economics at the London School of Economics, at University College Dublin and as a visitor to the University of California San Diego and the Australian National University as well as at Trinity College Dublin. He was elected a member of the Royal Irish Academy in 2002.
In her speech, Sabine Lautenschläger argues that, in a well-functioning banking sector, banks must be able to fail. It is key, however, that they can do so in an orderly manner without destabilizing the entire banking system. Against that backdrop, Ms Lautenschläger discusses the role of the supervisor within the European framework for bank resolution. She also sheds light on the importance of the upcoming European stress test for supervisors’ assessments of banks’ resilience.
The event will be in Italian and English, simultaneously translated.
16:35 | Opening remarks by Giuseppe Morbidelli (President, Fondazione CESIFIN Alberto Predieri)
16:40 | Presentation of the FBF and the speaker by Elena Carletti (Scientific Director, Florence School of Banking and Finance)
16:45 | Lecture by Sabine Lautenschläger (Member of the Executive Board and Vice-Chair of the Supervisory Board of the ECB): ‘The banks and the market’
17:30 | Questions and answers with the public, moderated by Emilio Barucci (Full professor of Financial Mathematics, Polytechnic University of Milan)
18:00 | Closing remarks by Vincenzo Grassi (Secretary General, European University Institute) and Giuseppe Rogantini-Picco (Member of the Board, Fondazione CR Firenze)
18:10 | Cocktail for all participants
Member of the Executive Board & Vice-Chair of the Supervisory Board of the European Central Bank
Sabine Lautenschläger, born in 1964, studied law in Bonn. After passing the second state examination in law, she joined the Bundesaufsichtsamt für das Kreditwesen (BAKred – Federal Banking Supervisory Office), which later became the Bundesanstalt für Finanzdienstleistungsaufsicht (BaFin – Federal Financial Supervisory Authority). In the course of her career at BAKred/BaFin, she held several management positions before being appointed BaFin’s Chief Executive Director of Banking Supervision in 2008. Later, in 2011, she additionally was Member of the Management Board and Board of Supervisors of the European Banking Authority (EBA) in London. In 2011 Sabine Lautenschläger moved to the Deutsche Bundesbank, serving as Vice-President until January 2014 when she was appointed to the Executive Board of the European Central Bank. As Member of the Executive Board she is also Member of the Governing Council which is responsible for the Monetary Policy in the Euro Area. Since her appointment as Vice-Chair of the Supervisory Board of the Single Supervisory Mechanism (SSM) in February 2014, she has also been in charge of ECB Banking Supervision. She represents ECB Banking Supervision in the Basel Committee on Banking Supervision and in the Financial Stability Board Plenary.