ECB's Villeroy Urges EU to Set Deadlines for Financial Sovereignty and AI Community
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ECB's Villeroy calls on EU to set deadlines for financial sovereignty
MILAN, June 18 (Reuters) - Top European Central Bank policymaker Francois Villeroy de Galhau urged the European Union to set up deadlines in order to speed up progress on financial integration and pooling its savings together to sustain investments. Speaking to students from all over Europe gathered in Milan for the Young Factor conference, Villeroy de Galhau said the European Union should create a sort of Artificial Intelligence (AI) community, like it did for steel and coal after World War Two.. If it acted now and upped its game, Europe could still catch up with the United States and China on AI. "The technology is evolving, and we could have the second mover advantage," Villeroy de Galhau, who is the Bank of France governor, said. "We still have a chance, provided we put together our resources, talents, and money on AI. This is why I call ... for an AI European Community, putting together our resources," he said. In order to do so the EU must find ways to retain and invest domestically more of its residents' savings, a big portion of which is currently being exported into other markets, primarily the United States, financing investments there. The European market is not particularly attractive for financial capital given its fragmentation, Villeroy de Galhau said, calling for the measures outlined by former Italian Prime Ministers Mario Draghi and Enrico Letta in their respective reports on European competitiveness to be swiftly adopted. "We know what we have to do. Draghi plus Letta plus the savings and investments union. By the way, most of these measures don't have fiscal costs ... But we are too slow: it's now, or it could be never," he said. "I really hope we can have a deadline and say: we will implement the Draghi and Letta reports, build European economic and financial sovereignty till, say, the 1st of January 2028, as we did with the single market," he added. Reporting by Valentina Za; Editing by Chizu Nomiyama Our Standards: The Thomson Reuters Trust Principles., opens new tab Suggested Topics:Artificial Intelligence
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ECB's Villeroy calls on EU to set deadlines for financial sovereignty
MILAN (Reuters) -Top European Central Bank policymaker Francois Villeroy de Galhau urged the European Union to set up deadlines in order to speed up progress on financial integration and pooling its savings together to sustain investments. Speaking to students from all over Europe gathered in Milan for the Young Factor conference, Villeroy de Galhau said the European Union should create a sort of Artificial Intelligence (AI) community, like it did for steel and coal after World War Two.. If it acted now and upped its game, Europe could still catch up with the United States and China on AI. "The technology is evolving, and we could have the second mover advantage," Villeroy de Galhau, who is the Bank of France governor, said. "We still have a chance, provided we put together our resources, talents, and money on AI. This is why I call ... for an AI European Community, putting together our resources," he said. In order to do so the EU must find ways to retain and invest domestically more of its residents' savings, a big portion of which is currently being exported into other markets, primarily the United States, financing investments there. The European market is not particularly attractive for financial capital given its fragmentation, Villeroy de Galhau said, calling for the measures outlined by former Italian Prime Ministers Mario Draghi and Enrico Letta in their respective reports on European competitiveness to be swiftly adopted. "We know what we have to do. Draghi plus Letta plus the savings and investments union. By the way, most of these measures don't have fiscal costs ... But we are too slow: it's now, or it could be never," he said. "I really hope we can have a deadline and say: we will implement the Draghi and Letta reports, build European economic and financial sovereignty till, say, the 1st of January 2028, as we did with the single market," he added. (Reporting by Valentina Za; Editing by Chizu Nomiyama )
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Top ECB policymaker Francois Villeroy de Galhau calls for EU to establish deadlines for financial integration and create an AI community to compete globally.
ECB Policymaker Calls for EU Financial Integration and AI Community
Francois Villeroy de Galhau, a top European Central Bank (ECB) policymaker and governor of the Bank of France, has urged the European Union to establish concrete deadlines for achieving financial sovereignty and creating an Artificial Intelligence (AI) community. Speaking at the Young Factor conference in Milan, Villeroy emphasized the need for swift action to enhance Europe's competitiveness in the global AI race 12.
Source: Reuters
Proposal for an AI European Community
Villeroy de Galhau drew parallels between the current AI landscape and the post-World War II era, suggesting that the EU should form an AI community similar to the European Coal and Steel Community. He expressed optimism about Europe's potential to catch up with the United States and China in AI development, stating, "The technology is evolving, and we could have the second mover advantage" 1.
The ECB policymaker stressed the importance of pooling resources, talents, and financial investments to create a robust AI ecosystem in Europe. He argued that by acting now and consolidating efforts, the EU could still become a significant player in the global AI market 2.
Financial Integration and Domestic Investment
A key aspect of Villeroy de Galhau's proposal involves retaining and investing more of EU residents' savings within the bloc. Currently, a substantial portion of European savings is being exported to other markets, particularly the United States, financing investments abroad instead of domestically 12.
The fragmentation of the European market was identified as a major deterrent for financial capital. To address this issue, Villeroy called for the swift adoption of measures outlined in reports by former Italian Prime Ministers Mario Draghi and Enrico Letta on European competitiveness 1.
Setting Deadlines for Financial Sovereignty
Emphasizing the urgency of the situation, Villeroy de Galhau proposed a specific deadline for implementing the recommendations from the Draghi and Letta reports and building European economic and financial sovereignty. He suggested January 1, 2028, as a target date, drawing a parallel to the establishment of the EU single market 12.
"We know what we have to do. Draghi plus Letta plus the savings and investments union. By the way, most of these measures don't have fiscal costs ... But we are too slow: it's now, or it could be never," Villeroy stated, underscoring the critical nature of timely action 2.
Implications for European Competitiveness
The proposals put forward by Villeroy de Galhau aim to address several challenges facing the EU, including its ability to compete in the rapidly evolving AI sector and its capacity to retain and leverage domestic savings for strategic investments. By setting clear deadlines and creating focused initiatives like the AI European Community, the ECB policymaker hopes to accelerate progress towards a more integrated and competitive European economy 12.
As global competition in AI and other advanced technologies intensifies, the EU's response to these calls for action could significantly impact its future economic standing and technological capabilities on the world stage.
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