to relocate your business in the eu. i am convinced that, in the years to come, an even closer network of european capital marketplaces – maybe with the centre of gravity in frankfurt – will provide added value to global financial markets. all capital marketplaces together linked by a strong single currency, a balanced european legal framework and a profitable and resilient financial industry in a capital markets union will be of increased global relevance. let me share another thought with you : the british referendum – and the refugee crisis – were a wake - up call to work harder on convincing ideas for the future design of the european union and for the division of labour between the european union and its member states. recent developments have made it very clear to everyone that we need to put more effort into creating a realistic vision for europe that its citizens will support. discussions on the future set - up of intra - european relationships and the relationships with our partners abroad have been gaining momentum recently. this debate will help to improve the architecture of europe. people currently appear to be rediscovering the advantages of close political ties and of an integrated economic area with a common currency. if the member states work in concert, the european union can act as a major economic player and will be in a better position to influence further globalisation. today, there appears to be no majority for deeper european integration. there is a belief, however, that we should consolidate our achievements and improve the finer points. it is necessary to reflect on how we benefit from europe, the european union and the euro. for many eu citizens, the 60th anniversary of the european union as a peace project was a chance to express their support for a democratic european union. for the first time in years, we are now seeing demonstrations in favour of the european union and not against the “ bureaucracy in brussels ". frankfurt marks the epicentre of a movement called the pulse of europe, as part of which citizens are gathering on a weekly basis and expressing their belief in the fundamental idea of the european union and its ability to be reformed. this movement is intended as a countermovement to the negative and destructive voices that are often heard in public. the pulse of europe has spread to other german and european cities. 4 / 5 bis central bankers'speeches during my years in the european parliament, i learned that europe has never been an easy issue. quite the contrary, it is a complicated and demanding project. but i am convinced that it is a project worth fighting for

to discuss if, but rather how, the uk will leave the union. far more interesting will be the elections in those countries which, for many observers, are regarded as core countries of european unification. we saw the outcomes of the elections in the netherlands in march. we are currently awaiting the second round of the french presidential election. in germany, two important state elections will be held in may 2017 and the federal election in september 2017. at the moment, we can observe a swing in the voters ’ mood. we have seen a rise in the success of populism in recent years, culminating in the astonishing decisions of 2016 and their aftermath. but the popularity of political populism now appears to be waning, and was not successful for example in case of the netherlands. 3 / 5 bis central bankers'speeches 4. brexit : a chance to refocus on european strength given the uk government ’ s formal declaration to withdraw from the european union, brexit has now entered a new and decisive phase. this applies, in particular, to the future role of the uk ’ s financial sector as the financial hub of continental europe. at the current stage of negotiations, nobody knows what form any future interdependencies will take. while the uk ’ s withdrawal from eu is highly regrettable, its exit could be associated with the substantial loss of rights to conduct business in the european union. most people agree that london ’ s major role as financial capital cannot be replaced within a short timeframe. however, some argue that the uncertainty surrounding brexit will lead to a substantial shift of banking services out of london. this relocation of sensitive and important infrastructures needs careful planning. hence, market participants will most likely not postpone decisions until the negotiations between the eu commission and the uk have been finalised. i do not expect that brexit will have negative repercussions for the financial centres in continental europe. given the economic weight of the world ’ s largest common market, home to 500 million citizens, and the importance of banks for businesses in the euro area, there might even be a net positive effect for the financial centres in the eu. incidentally, you may have noticed that a lively competition between financial capitals in the eu has started. in the wake of brexit, it is becoming ever - clearer that at least some business may have to move to continental europe. some of you have already made, or are about to make, decisions on where