nicholas c garganas : the european financial marketplace speech by mr nicholas c garganas, governor of the bank of greece, at the economist conference : private banking and asset management, athens, 22 october 2002. * * * ladies and gentlemen, let me start and by thanking the economist for inviting me to speak at this conference. in recent years, there has been a visible acceleration in the development and integration of eu financial markets. in what follows, i will discuss, first, why financial integration is desirable, second, why it has occurred, third, trends toward financial integration in the eu, and fourth, the role of public policy in supporting integration. why is financial integration desirable? i think it fair to say that the main function of the financial system is to serve the needs of the real economy, encouraging productive investments, allowing risks to be diversified, mobilising savings, monitoring firms ’ use of funds, etc. to this end, the development of both markets and sound financial institutions plays a key role. to the extent that increased financial integration allows the tasks of markets and institutions to be completed more efficiently, it will bring about greater benefits through two main channels : increased capital accumulation and higher productivity of capital. through these two channels, the greater efficiency of an integrated eu financial system will lead to increased economic growth and a higher standard of living for eu citizens. three main interrelated factors have underpinned the acceleration of integration of eu financial markets. the first factor is globalisation. the integration of financial markets in europe is part of a wider global development. globalisation has many dimensions, all of which have been stimulated by the decline in costs of communication, transportation, data processing, and transactions. the second factor is the advances in creating a common regulatory framework across the eu as part of the effort to complete the internal market in financial services. the adoption of a common eu policy has been accompanied by liberalisation of financial markets in the member states. as i will discuss shortly, however, there is still some distance to travel in this respect. the third factor is the adoption of the euro. before january 1999, the need to operate in many national currencies was a major obstacle to financial integration in the union. the presence of a sizeable exchange risk limited the attractiveness of cross - border investment, reduced the incentive to proceed with regulatory harmonisation at the eu level, and dampened competitive pressures in member states'home markets. the introduction of a common currency for twelve member

yannis stournaras : reforming and rebalancing the economy in greece introduction by mr yannis stournaras, governor of the bank of greece, to the presentation of the european bank for reconstruction and development ( ebrd ) transition report 2016 - 2017, athens, 25 january 2017. * * * it gives me great pleasure to welcome artur radziwill, director for country economics and policy of the ebrd, and his colleagues to the bank of greece. as you are aware, the bank of greece has on several occasions provided the venue for the presentation of the transition report and for many other ebrd initiatives. it this vein, we endorse the activity and positive role of the ebrd in greece, in particular during the last couple of years following the establishment of its local office. its commitment to the country sends a strong signal to private sector investors that greece is serious about reforming and rebalancing its economy. the 2016 transition report is of particular relevance to greece, since it deals exclusively with the important subject of inequality and economic inclusion. the report focuses on a number of key aspects of inclusive growth : the distribution of income ; the impact that the transition process has had on people ’ s well - being and happiness ; equality of opportunity ; and financial inclusion. these aspects are topical for greece. the economic adjustment programmes that have been implemented since 2010 in greece aimed at addressing the twin deficits ( i. e. fiscal and current account ) and structural weaknesses from which the economy has suffered for decades. the achievements so far have been remarkable : unprecedented fiscal consolidation. over the period 2013 – 16, the primary deficit was eliminated and, for the first time since 2001, general government primary surpluses were recorded. moreover, the improvement in the “ structural ” primary budget balance by more than 17 percentage points of potential gdp between 2009 and 2016 means that, taking the impact of the economic cycle into account, the fiscal adjustment in greece was more than double the one achieved in other member states under similar programmes. a recouping of the sizeable cumulative loss in labour cost competitiveness vis - a - vis our trading partners between 2000 and 2009. an elimination of the external deficit, which exceeded 15 % of gdp in 2008. an increase in the share of exports from 19 % of gdp in 2009 to 32 % today. structural reforms, notably in the labour market, but also in the product markets and in public administration. recapitalisation