Europe’s Commissioner for Financial Services on the challenge of fostering economic growth in the EU

In the course of the address he gave to students and professors of IE Business School and IE University, Lord Hill examined the challenges Europe faces in terms of job creation and growth, and the role played by banks and money markets in funding the economy. During his visit to Spain, Lord Hill also met with Spanish politicians including Minister of Foreign Affairs, José Manuel García-Margallo, and Minister of Finance, Luis de Guindos.

Jonathan Hill underscored the fact that the biggest challenge currently facing the EU is the lack of economic growth and low levels of job creation. Hill explained that in order to have a strong economy we need solid financial services. He explained the objectives of the capital markets union aimed at providing EU companies with access to funding and promoting growth in the 28 EU member countries with the creation of a single capital market.

Jonathan Hill underlined the importance of regulating capital markets in order to regain confidence in the markets and promote investment. With regard to Europe’s banking sector, he said that we can expect to see a consolidation process in the future and also remarked on the importance of developing alternative sources of funding to avoid total dependence on banks. He also stressed that it was essential to have well-trained professionals capable of innovating and assuming risks, because “zero risk is equal to zero growth.”

Participants in the “Titans of Finance” workshop series include top-tier executives and key players who examine relevant issues in the field of finance and economics. Speakers in the latest series include Robert Rubin, former Secretary of the U.S. Treasury, Lord Adair Turner, former President of the UK’s FSA (Financial Services Authority), and Alejandro Werner, Director of the Western Hemisphere Department of the International Monetary Fund (IMF).