Brussels Economic Forum 2011: extracts from the first Annual Tommaso Padoa-Schioppa Lecture by Wolfgang Schäuble
Type: Speech - summary
End production: 18/05/2011 First transmission: 18/05/2011
On 18/05/2011, High level decision-makers, economists and social partners gathered for the Brussels Economic Forum to debate and exchange ideas on the new era of the EU economic governance.
Wolfgang Schäuble, German Federal Minister for Finance, took part in the First Annual Tommaso Padoa-Schioppa Lecture. Padoa-Schioppa was an Italian banker and economist who was Italy's Minister for Economy and Finance from May 2006 until May 2008.
He also participated in a session devoted to strengthening European economic governance and surveillance of fiscal and macroeconomic imbalances.
Only the original language version is authentic and it prevails in the event of its differing from the translated versions.
||Exterior view of the Charlemagne building where the conference takes place
||General view of the Forum
||SOUNDBITE (in ENGLISH) by Wolfgang Schäuble, German Federal Minister for Finance: Tommaso Padoa-Schioppa believed in Europe. He believed in the European Union. And he believed that in the process of European integration, the euro was not only a milestone, but more importantly its catalyst. So do I. There is one basic principle which directed and still directs, the European integration: the principle that economic unity precedes political unity, but is intended to lead to political unity.
||SOUNDBITE (in ENGLISH) by Wolfgang Schäuble: we are not experiencing a crisis of the euro, but various crises in individual countries that belong to the euro area. These crises were caused by individual countries' erroneous economic and fiscal policies, as in the case of Greece, or were caused by a banking system going off the rails, as in Ireland.
||SOUNDBITE (in ENGLISH) by Wolfgang Schäuble: clearly it was a mistake to deregulate financial markets as much as possible. Markets aggregate the decisions and acts of human beings. And like human beings they need institutions, need rules and boundaries to act responsibly.
||SOUNDBITE (in ENGLISH) by Wolfgang Schäuble: if debt sustainability cannot be conformed for a Member State in crisis, private sector involvement becomes compulsory. With adequate private sector involvement, we strengthen the crucial principle of market economy: the inseparability of risk and accountability. Strong Member States will not provide an automatic safety net for weak Member States. They will not automatically account for risks taken by private creditors.
||Cutaway of the Forum