it is becoming increasingly important to monitor not only the performance of economies but also single sectors and investment projects. careful selection in the allocation of resources fosters the expansion of the global economy. italy is endowed with professional and entrepreneurial expertise, labour and savings allowing it to compete successfully with other economies in the new and more competitive european and global environment. the many small firms present in the italian economy can be a strong point, in view of their ability to use new technology and adapt rapidly to changes in external conditions. however, the increase in competition requires a major expansion in innovative sectors, something that larger companies are better able to achieve. the financial system can make a fundamental contribution by making finance available to the most viable investment projects, helping to keep domestic savings in italy and attracting resources from abroad. the restructuring of the credit system under way and the formation of major banking groups will support the activity of medium - sized and large firms and their growth. it is these firms, together with the multitude of highly flexible and productive small enterprises, that can make a decisive contribution to the achievement of higher levels of investment, to the introduction of advanced technology in companiesa€™ modus operandi and production processes and to the growth of savings and employment.

christian noyer : the end of the financial dictatorship? introduction by mr christian noyer, governor of the bank of france and chairman of the board of directors of the bank for international settlements, to session 5 “ the end of the financial dictatorship? ”, aix - en - provence economic forum, aix - en - provence, 6 july 2013. * 1. * * firstly, is finance really a dictatorship? this question isn ’ t new : already petronius, in roman times, at the start of our modern era, asked : “ what use are laws when money is king? ” the question seems rhetorical, and you can sense in its resignation that the latin writer ( who, incidentally, was born in the nearby city of marseille ) was already worried about the difficulties of establishing the primacy of politics over finance. i ) it is true that the world of finance does have considerable powers : • the power to create and support economic development. in its most traditional forms, this is finance ’ s most crucial role – and power : it is an essential cog in the wheel of economic activity, allocating capital, supplying credit and enabling the management of risk. more than just “ the sinews of war ”, it can be seen as the lifeblood flowing through our veins. • but also a highly destructive power : it was the unchecked sophistication of finance and the excesses this caused that lay behind the 2007 - 2008 financial crisis, a crisis that subsequently transformed into an economic, social and political crisis. limited losses on subprime loans ultimately led to the destruction of millions of jobs throughout the world, and the links between finance and the real economy were cruelly laid bare. ii ) but finance can certainly not be considered “ all powerful ” : in my opinion, the world of finance only has the political power that state governments choose to give it. • granted, the difficulties some countries were facing, notably in the euro area, were exacerbated by financial market pressures – think back to the attacks on italian debt in the summer of 2011. but if the markets were able to exert this pressure, it was because those countries had, in a sense, put themselves at their mercy by demanding that they finance their ever - expanding public deficits, even during periods of growth. • in nearly all the crises faced by the euro area since 2009, it is true that market reactions were often brutal and even extreme. but these reactions were frequently