The forces of globalization are still strong today, said the governor of the Bank of Greece Giannis Stournaras addressed on Thursday night to the members of the Supervisory Board of the Unified Supervisory Mechanism. However, as he pointed out, there is no doubt that security and diversification concerns in supply chains are constantly growing, which underscores the need for a counterweight at the regional level.
“What is at stake is not just the future of our economy. “As popular discontent and reaction to globalization continue, some of the fundamental principles of the democratic, rule-based order we take for granted in the West are being called into question,” the BoG governor warned.
Mr. Stournaras argued that the Eurozone should act proactively and move forward in actions and reforms, in this partially globalized world order. In this context, he said, there are several areas of financial integration in which reforms have stalled. The recent resumption of the procedures for setting up the European Deposit Insurance Scheme (EDIS) is a step in the right direction, he said, but reforms such as the MiCA (cryptocurrency) regulation need to be promoted. Also, the NextGenerationEU recovery package, in order to be a landmark reform, will have to be turned into a permanent mechanism, which will combine central fiscal management with supervision.