EC/ECB joint conference on Financial Integration and Stability: keynote speech by Vítor Constâncio, ECB Vice-President
Type: Complete speech
Brussels - EC/Charlemagne
On 25 April 2013, Vítor Constâncio, Vice-President of the ECB, made a presentation on fragmentation and rebalancing in the euro area at the European Commission/European Central Bank Joint Conference on Financial Integration and Stability.
Only the original language version is authentic and it prevails in the event of its differing from the translated versions.
||Presentation by Vítor Constâncio, Vice-President of the European Central Bank (ECB), (in ENGLISH) going through his slide show on fragmentation and rebalancing in the euro area.Saying, in conclusion, that financial integration progressed during 2012 as markets fragmentation has been reduced. In particular, sovereign bond spreads declined, especially in countries where they had increased the most in the preceding months. The degree of adjustment in both internal and external imbalances achieved by several stressed countries contributed also to the receding financial fragmentation.In spite of the improvements in market conditions, the climate in the financial markets remains fragile. The level of fragmentation remains high in some markets, e.g. money markets. The improvement in financial conditions has not been reflected on the real side of the economy. Economic growth in Europe will be essential to complete the adjustment that took place. Therefore, it is of paramount importance that the momentum is maintained towards structural reforms at national level and towards building a stronger Economic and Monetary Union through European-level institutional reforms. Further progress towards the establishment of the banking union (SSM, SRM and harmonised DGS) will be a critical factor underpinning future growth and financial integration.