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The author is the chief executive of UniCredit
“Europe is disappearing.” Ken Griffin, founder of Citadel Securities, said in early December. He added: “It's deadly compared to the United States.” “Their economy is not growing. Their numbers per capita are staggering.” When America's top financiers make that kind of assessment about our continent, it's time to wake up and respond.
It is now a little over two decades since the EU went through its biggest enlargement. In one sweep, it created a single market of about 450 million people, promoting stability, democracy and economic prosperity. A good idea of that time is possible but it is undoubtedly at risk.
We are going through a period of EU discord, with no idea of a common way forward. This is even more problematic when faced with the threat of falling further behind the US due to President Donald Trump's potential tariffs. And I don't want to mention the gamut of geopolitical problems that have befallen us over the years.
As a continent, we are beginning to realize that we need greater unity and economic growth to deal with all of this. This is where the power of the single market is most apparent. We forget how far the opportunity we enjoy today has come. We also fail to realize that this is only a fraction of what it could be and it can disappear completely.
Enrico Letta and Mario Draghi's recent statements on the EU remind us of what is at stake. Without attracting significant resources and increasing our structural growth, the EU cannot continue to deliver better living standards. We are in danger of falling far behind other blocs as centers of innovation and creativity. Eventually we may lose the freedom and desires we love.
Our one favorite market is incomplete and needs work. We need to focus on the EU's wider strategy for growth. Yet it seems we can't agree on simple things like having a money market or a banking union to support investment and growth. If we do, many structural challenges can be overcome.
It is up to European politicians to push for this change, and they will certainly have my support. But as a CEO of a bank, I'm focused on what businesses can do today. We already have the pillars of the banking union, which can be completed soon. We have heard calls for the consolidation of the European banking system so that we have greater capacity to finance new infrastructure and business growth. Yet we have seen precious little action.
I believe in the integration of our banking system, with strong European banks. This is why the UniCredit Group has made an investment in Commerzbank and an offer to buy Banco BPM. While these decisions are taken in the interest of our stakeholders, they also put the EU's wider integration and the future of the single market on the table.
They represent test cases that question whether we, as a bloc, are serious about greater integration. Are we willing to take the steps that our leaders have been calling for or will we be cold? The answer will either help unlock Europe's growth, or ensure that the real act of moving the single market forward remains elusive.
With a stronger pan-European reach comes economies of scale and wider EU competence. It means a larger distribution of capital to businesses that need money to grow and more ways to raise money, including stock markets. It means more ambitious, growing businesses can connect with trade flows and access new markets, especially in the EU. It means greater investment in products and services to support caregivers. And it means stronger, stronger, more reliable banks.
Without convergence, we see a slowdown in investment, restricted wealth creation and a widening gap between us and other blocs. Young people will leave our continent in search of opportunities elsewhere. We are jeopardizing our long-term success and ability to support our EU goals.
This is not an application for centralized decision making. All EU countries have their own experts and expertise; we should not interfere or dominate. However, we must be drawn to the common goal of growth and long-term success and turn our agreed upon vision into a mission without excuses.
There is more to Europe's future competitiveness than banking and capital markets. But it shows that Europe is finally ready to come together to end this period of low growth for the benefit of all. We now have the opportunity – and I believe, the task – to boost the European banking sector and our bloc ambitions. If the genius of our single market remains unfulfilled, I fear Draghi's warning that Europe's “bottom pain” will come true.