2018_06_14_firma-catedra-cuatrecasas

"Something that is missing in the European monetary union is the creation of a safe European financial asset that allows the diversification of the banks' investment portfolio". This was stated by the former vice president of the European Central Bank (ECB) Vítor Constâncio during the act of constitution of the new Chair Cuatrecasas de Estabilidad Financiera of the University of Navarra.

The former Vice-President of the ECB, director of this Chair, recalled that the European monetary union is facing new challenges and insisted on the need to implement a European bond system to reinforce banking unification. In his opinion, a solid monetary union requires the creation of a secure European financial asset. In his opinion, in addition to allowing the diversification of banks' investment portfolios, this would play a crucial role in the integration of the European money market.

"When I talk about a safe pan-European financial asset, I don't mean a Eurobond from plenary session of the Executive Council right, but a synthetic asset based on national debt and with some public support," he added. Among the reforms he considers necessary, he also cited placing a "fiscal stability function" at the center of European monetary policy, including a stability fund "like the one already proposed by the International Monetary Fund (IMF)."

On the other hand, in a more staff tone, Constâncio recalled the toughest period during the crisis. "Those were difficult times; the fragmentation and the development of financial imbalances put the project of the monetary union at risk. Fortunately, thanks to the ECB's decisions, we were able to control and stabilize the status".

Former ECB Vice-President Vítor Constâncio directs the new Chair Cuatrecasas Financial Stability School of Economics and Business Studies at the University of Navarra. The creation of this Chair responds to the desire to establish a framework of partnership between the signature of lawyers and the educational center in the fields of teaching, training and research, specifically by promoting and partnership in activities related to monetary policy, the banking environment and financial regulation.