ECB's Villeroy calls on EU to set deadlines for financial sovereignty
Top European Central Bank policymaker Francois Villeroy de Galhau urged the European Union to set up deadlines in order to speed up progress on financial integration and pooling its savings together to sustain investments.
Speaking to students from all over Europe gathered in Milan for the Young Factor conference, Villeroy de Galhau said the European Union should create a sort of Artificial Intelligence (AI) community, like it did for steel and coal after World War Two..
If it acted now and upped its game, Europe could still catch up with the United States and China on AI.
"The technology is evolving, and we could have the second mover advantage," Villeroy de Galhau, who is the Bank of France governor, said.
"We still have a chance, provided we put together our resources, talents, and money on AI. This is why I call ... for an AI European Community, putting together our resources," he said.
In order to do so the EU must find ways to retain and invest domestically more of its residents' savings, a big portion of which is currently being exported into other markets, primarily the United States, financing investments there.
The European market is not particularly attractive for financial capital given its fragmentation, Villeroy de Galhau said, calling for the measures outlined by former Italian Prime Ministers Mario Draghi and Enrico Letta in their respective reports on European competitiveness to be swiftly adopted.
"We know what we have to do. Draghi plus Letta plus the savings and investments union. By the way, most of these measures don't have fiscal costs ... But we are too slow: it's now, or it could be never," he said.
"I really hope we can have a deadline and say: we will implement the Draghi and Letta reports, build European economic and financial sovereignty till, say, the 1st of January 2028, as we did with the single market," he added.
(Reporting by Valentina Za; Editing by Chizu Nomiyama )
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The National
an hour ago
- The National
Jailed PKK leader Ocalan needs outside contact to dissolve group, pro-Kurdish politicians say
The jailed leader of the Kurdistan Workers' Party (PKK) Abdullah Ocalan needs better communication with the outside world to manage the militant group's proposed disarmament and political transition, pro-Kurdish leaders in Turkey have said. "Mr Ocalan will personally lead this disarmament process," Tulay Hatimogullari, co-chairman of the pro-Kurdish Peoples' Equality and Democracy (DEM) Party, said in Istanbul on Wednesday. "Therefore, for him to work more comfortably on this matter, he wants to hold meetings with many groups in Turkey, the Middle East, Europe – in short, all over the world." Ocalan, whose group is designated a terrorist organisation by Turkey, the EU and the US, called on PKK members in February to lay down their arms and for the group to be dissolved. His call came after a months-long process initiated by an ally of Turkish President Recep Tayyip Erdogan, the ultranationalist politician Devlet Bahceli, to offer greater freedom for Ocalan in exchange for the PKK's dissolution. Ocalan intends to transform the PKK into a political party based on 'political internationalism', Ms Hatimogullari said. 'After the weapons are laid down, how will the PKK cadres take on roles and missions in this regard? she said. "To discuss all of this and consult with others, it is necessary for him [Ocalan] to meet with everyone. We can evaluate this as a first step.' Ocalan also wants to meet leaders in Iraq and Syria, both of which have large Kurdish populations with varying degrees of autonomous governance, she said. "He wants to meet both with representatives of the autonomous administration in northern and eastern Syria, and with representatives of the Damascus government. The same goes for Iraq and many other countries." Kurdish politicians, who distinguish themselves from the PKK, are pushing for Turkey's government to move faster in what they describe as a democratisation process aimed at peace. The Turkish government has framed it as an exercise in achieving a 'terror-free Turkey', following more than four decades of conflict with the Kurdish militant group. 'The fact that it is progressing slowly does not mean that it is deadlocked. I think it needs to be accelerated,' Ms Hatimogullari said. Broadly, Kurdish politicians are calling for better prison conditions for Ocalan, who has been incarcerated on a remote island in the Sea of Marmara, south of Istanbul, since 1999. They want the formation of a parliamentary commission to solidify the process in law and to make recommendations for amendments to anti-terrorism legislation. They also want greater rights to use the Kurdish language and an end to curbs on Kurdish political activity. Government officials have said little about how the PKK's dissolution and disarmament will be managed and it is unclear to what extent they are willing to meet the DEM party's expectations. The government seeks co-ordination with other parties for the process to succeed, Mr Erdogan said on Wednesday. 'We need co-operation and the development of the spirit of working together to easily reach the goal of a terror-free Turkey, whose strategic importance is understood,' he told MPs in Ankara. The parliamentary commission needs to be functional, effective and results-driven, DEM co-chairman Tuncer Bakirhan said. The conflict between Iran and Israel adds more urgency, as Turkey needs to maximise its stability in the face of regional hostilities, he added. The commission "must not just engage in debate; it should provide legal proposals to the parliament ... and ensure successful progress on this issue", he said. The DEM is pushing for the commission to start work before the Turkish parliament's summer break, he added. The PKK agreed to heed Ocalan's call and disband last month. Yet the process of laying down weapons and deciding the fate of its fighters is complex. The PKK has conditioned laying down their weapons on 'freedom' for Ocalan and are in contact with the Turkish government over the disarmament process, Ms Hatimogullari said. Whether that means his release or the ability to hold consultations on the process from prison has not yet been established. 'Of course, the warring sides are already in contact with each other – this is happening outside the DEM party, outside of democratic politics,' she said. "Our view is that if steps are taken in this regard, the disarmament process will gain momentum very quickly. But as for how the dialogue between them will evolve in the upcoming period – we cannot predict that.' The government has not confirmed it is in talks with the PKK over the disarmament. Turkish intelligence services would 'closely monitor whether promises are kept' around dissolution, Mr Erdogan said last month. Releasing Ocalan would be politically difficult for the Turkish government: the conflict with the PKK has killed 40,000 people across both sides, and the release of the man heading the group that forms Turkey's number one national security issue would be unpopular. DEM officials, who have been allowed to visit Ocalan several times in recent months, said his overall prison conditions have not changed, but he now spends less time in solitary confinement. He is able to meet up to three other prisoners, chosen by him and his lawyers, to hold 'study groups', said Ms Hatimogullari. "He is in quite good spirits."
Khaleej Times
3 hours ago
- Khaleej Times
UK inflation cools slightly to 3.4% in May, ONS says
British inflation came in at an annual rate of 3.4% in May, down from an originally published 3.5% in April, the Office for National Statistics said on Wednesday. A Reuters poll of economists had pointed to a reading of 3.4% in May, which the Bank of England had also projected in forecasts published last month. Earlier this month the ONS said April's consumer price inflation reading of 3.5% had been overstated by 0.1 percentage points due to an error in car tax data from the government. April's figures were not amended but the correct data was used for May's readings. Economists surveyed by Reuters and investors think the BoE will leave interest rates on hold when it announces its June policy decision on Thursday. Gas, electricity and water prices rose in April alongside higher taxes on employers, causing the inflation rate to leap from 2.6% in March. A rise in oil prices since the start of the Iran-Israel conflict last week could cause inflation to rise again. Some BoE officials have said they disagree with the central bank's key assumption at its May meeting that the climb in inflation will not have longer-running effects on pricing behaviour. Chief Economist Huw Pill said last month the pace of interest rate cuts was too fast given still strong wage pressures on inflation, but his vote in May to keep borrowing costs on hold was likely to be "a skip" not a halt to rate cuts. Market pricing on Tuesday pointed to an 87% chance that the BoE will leave rates on hold this week, with two 0.25 percentage-point cuts priced in by the year's end. The BoE lowered rates by a quarter point to 4.25% on May 8 in a three-way split vote, with two Monetary Policy Committee members favouring a bigger cut and two - including Pill - favouring a hold. The central bank said in May it expects inflation to peak at about 3.7% later this year. Some economists think April might prove to be the high point although the conflict in the Middle East poses a risk of stronger price pressures. (Reporting by Andy Bruce; editing by Sarah Young)
The National
4 hours ago
- The National
EU's Kaja Kallas launches evacuation effort for citizens stranded by war
The EU's foreign affairs chief Kaja Kallas is leading efforts to co-ordinate evacuations of European citizens stranded by the Israel-Iran war. Hundreds of Europeans have left Israel since Friday by land through Jordan or Egypt before boarding flights back home. The airspace of a dozen countries in the region, including Israel, has been closed since the beginning of hostilities. Speaking after Ms Kallas chaired a meeting of the bloc's 27 foreign ministers to discuss co-ordination efforts, spokesman Anouar El Anouni on Wednesday said that her office was working closely with member states 'to assist their citizens who wish to leave the region'. 'We will, as usual, encourage co-ordination to assist as many citizens in need as possible,' said Mr El Anouni. He added that he could not elaborate for security reasons. Not all countries have chosen to evacuate citizens from the region. Some that would like to appear not to have the ability to easily charter planes. Speaking ahead of Tuesday's online foreign minister meeting, Irish Foreign Minister Simon Harris said: 'None of this is easy. The airspace is closed. Land borders can be treacherous.' After the talks, Ms Kallas said in Brussels that she would co-ordinate efforts 'so our citizens are safe'. Logistics support The commission said that, so far, 400 European citizens have been repatriated through its so-called civil protection mechanism, the bloc's disaster-response co-ordination system, at the request of Poland, Lithuania, Slovakia and Greece. Flights leaving Jordan and Egypt started departing on Monday. Greece on Wednesday evacuated 105 citizens and assisted nationals from neighbouring Albania, according to Greek media. The request to trigger the mechanism was made for citizens in Israel but not Iran, The National understands. Poland has also reportedly moved its diplomatic staff from Iran to Baku, Azerbaijan. 'The passengers lists are basically in the hands of the member states because the people affected need to contact either their embassies or our delegations, but member states co-ordinate the lists,' commission spokeswoman Eva Hrncirova said. 'We co-finance these flights up to the 75 per cent of the transport costs.' While several countries have launched national repatriation efforts, others, such as France and Ireland, have yet to do so. French Foreign Minister Jean-Noel Barrot on Wednesday said he had submitted proposals to a national defence council chaired by President Emmanuel Macron to be held later in the day. 'In a few hours, we will have a system that will allow us to respond to many of the concerns that have been expressed,' Mr Barrot told senators. The homes of some of the French embassy's employees in Tel Aviv had been hit by Iranian strikes, he added. Germany has reportedly asked its citizens to travel by their own means to Amman before boarding charter flights to Frankfurt. About 4,000 of its citizens in Israel and 1,000 in Iran have registered on a crisis list, the ministry said. The UK, which is not a member of the EU, has also called on its nationals to register their presence in the region. London said it sent specialist teams to Egypt and Jordan to bolster its presence near the border. 'This is a distressing time for British nationals in the region, their safety and security is our top priority,' the Foreign Office said. 'This is a fast-moving situation that has the potential to deteriorate further, quickly and without warning.'
