Luis De GUINDOS, Vice-President of European Central Bank (ECB), presents the annual report 2018 during an exchange of views in the EP Committee on Economic and Monetary Affairs (ECON), in Brussels. The report presents the ECB's policies and activities in the economic and financial environment of 2018, including monetary policy, financial sector, market infrastructures and payments, financial services provided to other institutions, banknotes and coins, statistics, economic research, legal activities, international and European cooperation, external communication, institutional and corporate governance.

Brussels

exchange of views

Committee on Economic and Monetary Affairs

European Central Bank annual report (T)

DE GUINDOS JURADO, Luis (ES)

European Central Bank – annual report 2018: extracts from the presentation by Luis De GUINDOS, Vice-President of ECB, and from the exchange of views

Arrival of Luis DE GUINDOS JURADO, Vice-President of the European Central Bank. He takes the seat (2 shots)

SOUNDBITE (English), Luis DE GUINDOS JURADO, Vice-President of the European Central Bank, The persistence of uncertainties related, in particular, to geopolitical factors, the threat of protectionism and vulnerabilities in emerging markets has appeared to dent economic sentiment. In our latest staff projections, the euro area growth outlook for 2019 has been revised down substantially, to an annual growth rate of 1.1%.  <p>The effect of the adverse factors weighing on growth is expected to unwind over time. Growth is expected to come in at 1.5% in 2021, unchanged from previous projections.</p>

SOUNDBITE (English), Luis DE GUINDOS JURADO, Vice-President of the European Central Bank, The absence of clarity related to the outcome of the Brexit process contributed to higher political and policy uncertainty. Thanks to the preparations made by public authorities and the private sector, a no-deal scenario poses manageable risks to overall euro area financial stability. However, some vulnerabilities remain which could generate more adverse effects if they interact with risks currently affecting the euro area outlook.

SOUNDBITE (English), Luis DE GUINDOS JURADO, Vice-President of the European Central Bank, Many of the main regulatory reforms prompted by the outbreak of the global financial crisis have now been completed. Nevertheless, European banks cannot yet operate within a truly integrated framework and European citizens and firms cannot yet reap the full benefits of a genuine single banking market. Further efforts are also needed to develop truly integrated capital markets, while at the same time strengthening the regulatory and supervisory framework for the non-bank financial sector. For these reasons, completing the banking union and fostering the capital markets union will remain of paramount importance in the new legislative term.

SOUNDBITE (English), Luis DE GUINDOS JURADO, Vice-President of the European Central Bank, If we have a Banking Union, one of the main elements of the Banking Union is to have real European banks, with presence in different countries. That could be an important signal in order to complete the Banking Union and it would convey the correct message in terms of having a Single Market for the banks. 