jorg asmussen : is europe on the right track? speech by mr jorg asmussen, member of the executive board of the european central bank, at the deutsche bank women in european business conference “ competition versus coalition – the quest for growth? ”, frankfurt am main, 20 march 2013. * * * dear ms. siebert, dear mr. leithner, ladies and gentlemen, thank you very much for inviting me to speak at the women in european business conference organised by deutsche bank. the topic of this year ’ s conference – the quest for growth – could scarcely be more relevant for europe today. as this audience knows better than most, the low growth environment is posing serious challenges for businesses. uncertainty about the future is a drag on confidence and a barrier to new investment. it causes banks to cut back on lending, especially to small - and mediumsized firms, which are critical to help growth rebound. and above all, low growth is deeply affecting the lives of ordinary people in europe. as a result, many are frustrated, and some are even desperate. they doubt whether the european strategy to deal with the crisis is the right one. they are asking : “ will we ever come out of it, with ever more cuts and austerity? ” and it is right and legitimate that they are asking this. “ power of the masses ” is a key theme of this conference. we are democratic societies in europe and these important choices about the future of our countries and our monetary union require a proper public debate. but this debate also needs to be based on substance. rage alone does not solve our problems. just being angry at politicians or officials, even if justified, does not help citizens understand the crisis. people need to be presented with the real choices facing them – even if that means taking hard decisions or making sacrifices. offering allegedly easy solutions, or presenting false alternatives, abandons the debate to populists and gambles with the long - term prosperity of our societies. so today i would like to present my view on the choices that are facing europe – and in doing so, to expose some of the myths and misconceptions about the european approach to managing the crisis. concretely, i want to answer two questions : • first, are there alternatives to the current strategy, and if so, what are their real consequences? • second, are we condemned to a “ lost decade ”, or can we find new sources of growth to lift us out of

the batch electronic fund transfer ( eft ) credit to be called “ peso net ” and following that, the real time low value push ach or “ instapay ”. our msmes will surely benefit from these initiatives by broadening their customer reach, reducing the cost of managing cash, and providing greater access to credit. 3 / 4 bis central bankers'speeches stepping and leaping together to bridge gaps while much has been accomplished, the figures on msme financing show that more needs to be done. an msme finance ecosystem that services the needs of msmes at various stages of their growth path must be in place. these services are not exclusively bank credit but involve a mix of providers and products that are suited to the msmes needs and capacities. there is an urgent need to develop financial infrastructure to support msme financing. this includes a credit information system, efficient secured transaction registries and a well - run credit guarantee system. we are also very focused in pursuing ambitious reforms to deepen our domestic debt market and to further liberalize our foreign exchange regime to make doing business generally easier. the bsp is closely working with partners in government, the private sector, and international organizations on all these fronts and will stay engaged and supportive of these important initiatives. however, coordination and collaboration of multiple players is needed. only through our cumulative efforts will msmes be provided greater and affordable access to capital and finance. this will allow them to engage in more productive, innovative, and profitable activities contributing to national development. on behalf of the monetary board and the bsp, i am very honored to share this vision of synergy and cooperation with you. let us take the steps and leap forward together. thank you and mabuhay tayong lahat! 4 / 4 bis central bankers'speeches