, stable and prosperous europe. the unification of germany almost a decade ago, and the removal of the iron curtain have placed germany even further, as it were, in the heart of europe. these fundamental changes make clear that the motives for european integration are no less valid today than 50 years ago. the main vehicle for european integration has been economic integration, via the coal and steel industry, from establishing a customs union, the european monetary system, to the single market programme and the introduction of the euro. “ trade, do not fight ” or perhaps better “ trade and you will not fight ” was the basic philosophy. given this background, it is striking that economists all too often assess the costs and benefits of european integration in purely economic terms and in a rather static context. this is clearly too narrow an approach. nonetheless, the economics of european integration are important. the political objectives can only be met if economic integration is successful and placed on a sound economic footing. this is also where the role of the central banker comes in. he or she should not and does not decide on the steps to be taken in the integration process. that is in the realm of politics and is also market - driven. the central banker advises and points out the conditions which have to be met for certain steps to be taken safely. the reverse is also true : the central banker and central banks are for their part influenced by the integration process, and the greater the level of integration in the monetary field, the greater the impact upon them. the central bank and the central banker are operating in an environment, which is affected by the ongoing integration process. this has to be taken into account. moreover, the question arises as to whether a single monetary policy ultimately calls for further integration in other areas. in retrospect, it can be concluded that, thus far, the european integration process has, on balance, been successful. in our part of europe we have experienced peace since the process was initiated and we have seen a continuous growth in earnings and wealth. the further process of gradual integration has now culminated in the emergence of a single currency. there is no room, however, for complacency. looking back, let me also draw some more specific conclusions : 1. the integration process has been marked by ups and downs, often in step with the course of the business cycle or in connection with major shocks, such as german unification. the road has been long and winding, sometimes bumpy. 2. long ago european integration

yves mersch : comments at financial services summit comments by mr yves mersch, member of the executive board of the european central bank, at cumberland lodge financial services summit, windsor, 10 november 2016. * * * introduction sustainable economic growth in the real economy depends on the soundness of financial services and their providers ; this simple truth has been amply evidenced by the collapse of credit during the financial crisis and the subsequent recession. one important type of financial intermediary are central counterparties ( ccps ) ; second, the financial ecosystem is – like the rest of the world – experiencing rapid change due to technical innovation ; i would like to give a clear signal that innovation should be embraced as the improvement of financial services can boost the real economy ; but i also would like to give a warning that a certain level of caution is needed when technological innovations are applied to financial markets in order to avoid any negative consequences. ( i ) central counterparties ccps are systemically relevant. they have been in the focus of regulators and central banks since the financial crisis. the growth in central clearing makes ccps nodes for risk in the system. this is why we have carried out considerable work at international level to promote that they operate in a safe and resilient manner. in 2012 global standard setting bodies ( cpmi - iosco ) adopted key risk mitigation requirements – the principles for financial market infrastructures – which raised the bar worldwide for ccp supervision. a global ccp work plan has recently been launched to further strengthen the resilience, recovery planning and resolution of ccps, which will lead to further guidance being released in the near future. under eu law, each ccp is overseen by a college of supervisors, involving all authorities that have a relevant interest in its prudent risk management. the colleges act as forums for information - sharing, ensuring a high level of transparency in the way ccps operate, which can prove especially valuable in the event of a crisis. brexit creates uncertainty, and raises doubts as to the future of this framework the prospect of the uk ’ s exit from the eu creates uncertainty regarding the future of the supervision of non - euro area ccps that clear significant amounts of euro currency. we do not know what the future relationship between the eu and the uk will be, and i do not wish to speculate on this matter. we cannot be complacent with regard to the regulatory, supervisory and oversight framework for financial market infrastructures. while it