25 years of the euro: lessons for future challenges
Over two days, researchers presented the latest results of their research on topics such as the resilience of the eurozone, new financial technologies and the measures needed to strengthen European economic integration and discussed these with representatives from politics and the financial sector. The highlight was a keynote speech by Isabel Schnabel, Member of the Executive Board of the European Central Bank (ECB).
The first CEPR Frankfurt Hub Conference on 30 and 31 October 2024 focused on the path taken so far and the future of the eurozone in the midst of economic and geopolitical challenges. The conference was organized by the Leibniz Institute for Financial Research SAFE and the CEPR (Centre for Economic Policy Research) Research and Policy Networks European Financial Architecture, European Economic Policy, and FinTech and Digital Currencies. The event at the House of Finance in Frankfurt was chaired by Jan Krahnen and Loriana Pelizzon from SAFE, Giancarlo Corsetti from the European University Institute and Dirk Niepelt from the University of Bern.
"The fight against inflation is not yet won”
In her speech, Isabel Schnabel spoke about the ECB's efforts to bring inflation back to its target level amidst challenging economic conditions. Despite the decline in inflation rates, she pointed to the persistent inflation in the services sector and volatile energy prices. Although the ECB has succeeded in reducing inflation-related tensions and has therefore eased measures, Schnabel emphasized that the “fight against inflation is not yet won” and requires continued vigilance.
She also addressed the resilience of the labor market, which has remained strong despite rising wage levels and labor shortages. Although the situation is easing somewhat, the ECB remains vigilant with regard to future economic shocks and structural challenges, such as geopolitical risks, energy prices and climate-related effects. Schnabel said that the ECB's monetary policy alone could not solve structural economic problems and that more comprehensive government work was needed to ensure long-term economic stability in the eurozone. In parallel, the ECB would continue to pursue its gradual, data-dependent approach.
During the two days of the conference, researchers presented important research results along the variety of topics of the CEPR clusters that reflect the current challenges of the euro and the financial markets. Florian Heider, for example, discussed the paper “Common Deposit Insurance, Cross-border Banks, and Welfare,” by Gyöngyi Lóránth, Anatoli Segura and Jing Zeng, presented by Segura, which examines the effect of common deposit insurance on international banks. In his analysis, Heider emphasized the current relevance of the paper. He illustrated this by using the possible takeover of Commerzbank by UniCredit as an example. In a panel discussion moderated by Jan Krahnen, Roland Chai, Giancarlo Corsetti, Daniela Weber-Rey and Beatrice Weder di Mauro debated the future of European financial market policy, focusing on the necessary regulatory and market-based innovations.
Loriana Pelizzon, Deputy Scientific Director of SAFE, was delighted with the productive talks and discussions. She hopes that the conference and the cooperation with CEPR have created a solid basis for future discussions on the complex challenges facing the eurozone and the European financial system.
Source: SAFE
