Annual Conference – European Financial Infrastructure in the Face of New Challenges
- Franklin Allen, Brevan Howard Centre, Imperial College
- Elena Carletti, Bocconi University, BAFFI CAREFIN and European University Institute
- Mitu Gulati, Duke University
- Jeromin Zettelmeyer, Peterson Institute for International Economics
Europe’s financial infrastructure is experiencing deep challenges from both within and outside. From within, there is a need to deal effectively with sovereign risk in a way that ensures financial stability in both the short and the long run. From the outside, Europe needs to react to the risk of economic and financial fragmentation, ignited by populist and nationalist movements and a new unilateralism on the side of Europe’s traditional ally, the United States. The tensions ignited by this shift have so far been mostly limited to international trade, but they could also affect the payments system.
Against this background, the purpose of this conference will be to gain a better understanding of the internal and external disruptions that may be putting Europe’s financial system under stress and offer a way forward to address these challenges, in a dialogue between senior academics, policy-makers and private practitioners.
Specifically, the conference aims to (1) assess the challenges to Europe’s and the global payment systems in the context of rising US extra-territorial sanctions, (2) debate what steps could mitigate the costs of sovereign debt crises without raising sovereign yields or exacerbating liquidity risk in the short run, (3) ask whether Europe needs a safe asset that helps address challenges from both directions, and how this could be designed.