1 00:00:50,366 --> 00:00:53,266 Good morning. Welcome to the 2 00:00:53,266 --> 00:00:55,800 Good morning. Welcome to the second day of brutal annual 3 00:00:55,800 --> 00:00:57,300 second day of brutal annual meeting here in Brussels the 4 00:00:57,300 --> 00:00:59,467 meeting here in Brussels the first session of uh today’s 5 00:00:59,467 --> 00:01:01,200 first session of uh today’s event will be on equity, 6 00:01:01,200 --> 00:01:03,267 event will be on equity, corporate debt and Europe’s 7 00:01:03,267 --> 00:01:04,899 corporate debt and Europe’s capital markets The coverage 8 00:01:04,899 --> 00:01:06,333 capital markets The coverage nineteen epidemic will leave 9 00:01:06,333 --> 00:01:07,533 nineteen epidemic will leave states in private agents with 10 00:01:07,533 --> 00:01:08,099 states in private agents with much higher debts than when we 11 00:01:08,099 --> 00:01:10,366 much higher debts than when we came in to over this new hire 12 00:01:10,366 --> 00:01:13,267 came in to over this new hire debt overhand mean for growth 13 00:01:13,267 --> 00:01:15,367 debt overhand mean for growth um today and in the future, 14 00:01:15,367 --> 00:01:17,134 um today and in the future, what is the role of in helping 15 00:01:17,134 --> 00:01:18,533 what is the role of in helping growth? uh given the high level 16 00:01:18,533 --> 00:01:20,300 growth? uh given the high level of deadness and one must be 17 00:01:20,300 --> 00:01:22,934 of deadness and one must be done next in? To address some 18 00:01:22,934 --> 00:01:24,799 done next in? To address some of the dead bias in Europe’s 19 00:01:24,799 --> 00:01:26,801 of the dead bias in Europe’s financial model to discuss 20 00:01:26,801 --> 00:01:27,900 financial model to discuss these issues and many more that 21 00:01:27,900 --> 00:01:29,700 these issues and many more that are gonna be pivotal for the 22 00:01:29,700 --> 00:01:31,066 are gonna be pivotal for the new growth model for Europe, 23 00:01:31,066 --> 00:01:32,000 new growth model for Europe, I’m joined by a very 24 00:01:32,000 --> 00:01:33,301 I’m joined by a very distinguished panel this 25 00:01:33,301 --> 00:01:34,700 distinguished panel this morning. Welcome everyone. let 26 00:01:34,700 --> 00:01:37,133 morning. Welcome everyone. let me briefly introduce you uh to 27 00:01:37,133 --> 00:01:38,867 me briefly introduce you uh to my distinguished speakers. I am 28 00:01:38,867 --> 00:01:40,801 my distinguished speakers. I am joined by a Governor Robert 29 00:01:40,801 --> 00:01:42,333 joined by a Governor Robert Homan from the National Bank 30 00:01:42,333 --> 00:01:42,867 Homan from the National Bank roster, actually physically 31 00:01:42,867 --> 00:01:45,533 roster, actually physically here the premises uh of brutal 32 00:01:45,533 --> 00:01:46,467 here the premises uh of brutal and thank you very much for 33 00:01:46,467 --> 00:01:47,867 and thank you very much for joining us and then the rest of 34 00:01:47,867 --> 00:01:50,800 joining us and then the rest of my guests are joining online. 35 00:01:50,800 --> 00:01:52,600 my guests are joining online. It may be that chick, who is 36 00:01:52,600 --> 00:01:55,799 It may be that chick, who is the chief economist at the EBRD 37 00:01:55,799 --> 00:01:57,300 the chief economist at the EBRD Mister Ross is the Chief 38 00:01:57,300 --> 00:01:58,733 Mister Ross is the Chief Economist and management board 39 00:01:58,733 --> 00:02:01,667 Economist and management board member at the ESM and Sophie 40 00:02:01,667 --> 00:02:02,833 member at the ESM and Sophie Verma, who is the founder of 41 00:02:02,833 --> 00:02:05,233 Verma, who is the founder of and croissants rules for Growth 42 00:02:05,233 --> 00:02:06,667 and croissants rules for Growth Institute in Paris. Thank you 43 00:02:06,667 --> 00:02:08,467 Institute in Paris. Thank you all for uh for joining me, we 44 00:02:08,467 --> 00:02:11,667 all for uh for joining me, we have a big topic to to discuss 45 00:02:11,667 --> 00:02:13,466 have a big topic to to discuss uh and perhaps maybe if I can 46 00:02:13,466 --> 00:02:15,266 uh and perhaps maybe if I can attend to you uh if you have a 47 00:02:15,266 --> 00:02:16,467 attend to you uh if you have a check to start a little bit 48 00:02:16,467 --> 00:02:18,967 check to start a little bit with setting the scene of where 49 00:02:18,967 --> 00:02:20,400 with setting the scene of where we are in terms of the debt 50 00:02:20,400 --> 00:02:22,367 we are in terms of the debt overhang where we are in terms 51 00:02:22,367 --> 00:02:24,000 overhang where we are in terms of the level of indebted that 52 00:02:24,000 --> 00:02:28,267 of the level of indebted that uh. And inevitably had to uh to 53 00:02:28,267 --> 00:02:29,933 uh. And inevitably had to uh to carry on and that will include 54 00:02:29,933 --> 00:02:32,266 carry on and that will include also uh countries the uh the 55 00:02:32,266 --> 00:02:32,833 also uh countries the uh the sovereign states, and what 56 00:02:32,833 --> 00:02:34,400 sovereign states, and what would that mean as we move 57 00:02:34,400 --> 00:02:36,933 would that mean as we move forward in terms of identifying 58 00:02:36,933 --> 00:02:40,334 forward in terms of identifying the new growth model? Thank 59 00:02:40,334 --> 00:02:41,834 the new growth model? Thank you. Maria. Thank you very much 60 00:02:41,834 --> 00:02:43,299 you. Maria. Thank you very much for the invitation. It’s a 61 00:02:43,299 --> 00:02:45,800 for the invitation. It’s a pleasure to participate in this 62 00:02:45,800 --> 00:02:48,233 pleasure to participate in this conversation. so let me make 63 00:02:48,233 --> 00:02:50,634 conversation. so let me make three points first. you’re one 64 00:02:50,634 --> 00:02:53,667 three points first. you’re one of the big concerns now is that 65 00:02:53,667 --> 00:02:55,534 of the big concerns now is that the debt overhang will 66 00:02:55,534 --> 00:02:58,867 the debt overhang will negatively. To medium term as 67 00:02:58,867 --> 00:03:01,334 negatively. To medium term as we have seen after the 68 00:03:01,334 --> 00:03:02,700 we have seen after the financial crisis during the 69 00:03:02,700 --> 00:03:05,566 financial crisis during the recovery time firms that were 70 00:03:05,566 --> 00:03:07,633 recovery time firms that were highly indebted, we’re 71 00:03:07,633 --> 00:03:09,267 highly indebted, we’re investing much less and the 72 00:03:09,267 --> 00:03:12,000 investing much less and the effect was particularly strong. 73 00:03:12,000 --> 00:03:13,867 effect was particularly strong. uh for friends with debts of 74 00:03:13,867 --> 00:03:17,366 uh for friends with debts of short-term maturity so moving 75 00:03:17,366 --> 00:03:18,834 short-term maturity so moving forwards to the extent 76 00:03:18,834 --> 00:03:21,267 forwards to the extent possible, it would be useful to 77 00:03:21,267 --> 00:03:22,867 possible, it would be useful to avoid piling up more debt on 78 00:03:22,867 --> 00:03:27,033 avoid piling up more debt on funds So that means that grants 79 00:03:27,033 --> 00:03:31,233 funds So that means that grants equity. Or longer-term debt 80 00:03:31,233 --> 00:03:33,200 equity. Or longer-term debt would be more useful 81 00:03:33,200 --> 00:03:37,300 would be more useful instruments and the current the 82 00:03:37,300 --> 00:03:39,967 instruments and the current the your recovery uh package. it is 83 00:03:39,967 --> 00:03:41,034 your recovery uh package. it is a step in the right direction 84 00:03:41,034 --> 00:03:43,667 a step in the right direction in terms of focusing on grants 85 00:03:43,667 --> 00:03:46,266 in terms of focusing on grants the key issue here is how to 86 00:03:46,266 --> 00:03:47,967 the key issue here is how to break this vicious cycle 87 00:03:47,967 --> 00:03:50,267 break this vicious cycle between high in darkness and 88 00:03:50,267 --> 00:03:54,300 between high in darkness and low growth now as we are 89 00:03:54,300 --> 00:03:57,366 low growth now as we are helping firms the second issue 90 00:03:57,366 --> 00:03:59,633 helping firms the second issue we need to pay attention to is 91 00:03:59,633 --> 00:04:02,433 we need to pay attention to is how to avoid. Freezing the 92 00:04:02,433 --> 00:04:05,700 how to avoid. Freezing the status quo how to allow 93 00:04:05,700 --> 00:04:08,267 status quo how to allow creative destruction to work 94 00:04:08,267 --> 00:04:09,967 creative destruction to work and in particular what we want 95 00:04:09,967 --> 00:04:12,434 and in particular what we want to avoid is creating green 96 00:04:12,434 --> 00:04:15,466 to avoid is creating green zombies rescuing companies that 97 00:04:15,466 --> 00:04:19,334 zombies rescuing companies that may be viable in the pre crisis 98 00:04:19,334 --> 00:04:21,066 may be viable in the pre crisis environment but companies that 99 00:04:21,066 --> 00:04:23,466 environment but companies that will no longer be viable once 100 00:04:23,466 --> 00:04:27,266 will no longer be viable once we move to a low carbon economy 101 00:04:27,266 --> 00:04:29,699 we move to a low carbon economy and one of the issues that is 102 00:04:29,699 --> 00:04:32,633 and one of the issues that is um under appreciated. here is 103 00:04:32,633 --> 00:04:35,967 um under appreciated. here is political. You know it has not 104 00:04:35,967 --> 00:04:38,866 political. You know it has not gone away and there will be 105 00:04:38,866 --> 00:04:41,266 gone away and there will be fears by dirty industries to 106 00:04:41,266 --> 00:04:43,734 fears by dirty industries to help them survive. Also what’s 107 00:04:43,734 --> 00:04:46,466 help them survive. Also what’s very much under appreciated is 108 00:04:46,466 --> 00:04:49,100 very much under appreciated is the lack of awareness among 109 00:04:49,100 --> 00:04:52,666 the lack of awareness among firms um we did a survey of 110 00:04:52,666 --> 00:04:54,600 firms um we did a survey of about 20000 farms in the 111 00:04:54,600 --> 00:04:56,767 about 20000 farms in the countries where the EBRD 112 00:04:56,767 --> 00:04:58,733 countries where the EBRD operates and one of the 113 00:04:58,733 --> 00:05:01,566 operates and one of the fascinating um findings of the 114 00:05:01,566 --> 00:05:03,866 fascinating um findings of the surveys that when we ask 115 00:05:03,866 --> 00:05:07,666 surveys that when we ask parents if you have. Undertaken 116 00:05:07,666 --> 00:05:10,267 parents if you have. Undertaken green investments Why was what 117 00:05:10,267 --> 00:05:13,166 green investments Why was what was the reason for that almost 118 00:05:13,166 --> 00:05:14,900 was the reason for that almost two thirds of firm said. It’s 119 00:05:14,900 --> 00:05:18,766 two thirds of firm said. It’s simply not a priority for us 120 00:05:18,766 --> 00:05:21,301 simply not a priority for us and the same answer was given 121 00:05:21,301 --> 00:05:23,066 and the same answer was given by large firms and by small 122 00:05:23,066 --> 00:05:26,533 by large firms and by small firms. so there is a huge lack 123 00:05:26,533 --> 00:05:28,966 firms. so there is a huge lack of awareness and I think the 124 00:05:28,966 --> 00:05:31,000 of awareness and I think the current crisis provides a great 125 00:05:31,000 --> 00:05:33,067 current crisis provides a great opportunity to build awareness 126 00:05:33,067 --> 00:05:36,266 opportunity to build awareness as another survey we have. 127 00:05:36,266 --> 00:05:39,966 as another survey we have. Shows is that um people in 128 00:05:39,966 --> 00:05:41,333 Shows is that um people in countries where we operate 129 00:05:41,333 --> 00:05:43,866 countries where we operate particularly in the new member 130 00:05:43,866 --> 00:05:46,333 particularly in the new member states have increased their 131 00:05:46,333 --> 00:05:49,267 states have increased their appreciation of the climate 132 00:05:49,267 --> 00:05:51,234 appreciation of the climate change issues as a result of 133 00:05:51,234 --> 00:05:53,199 change issues as a result of the covet pandemic. So there 134 00:05:53,199 --> 00:05:54,733 the covet pandemic. So there there’s a parallel here you 135 00:05:54,733 --> 00:05:57,234 there’s a parallel here you know just as in January, it was 136 00:05:57,234 --> 00:05:58,734 know just as in January, it was a Chinese problem and now it’s 137 00:05:58,734 --> 00:06:02,700 a Chinese problem and now it’s a global problem. Climate 138 00:06:02,700 --> 00:06:04,700 a global problem. Climate change you know seems far away 139 00:06:04,700 --> 00:06:06,467 change you know seems far away issue. That’s not touching us 140 00:06:06,467 --> 00:06:07,967 issue. That’s not touching us at the moment in Europe, but 141 00:06:07,967 --> 00:06:10,299 at the moment in Europe, but you know. We know it’s it’s 142 00:06:10,299 --> 00:06:12,666 you know. We know it’s it’s going to be with us so we 143 00:06:12,666 --> 00:06:14,567 going to be with us so we should make sure that you know 144 00:06:14,567 --> 00:06:17,167 should make sure that you know we use this opportunity uh to 145 00:06:17,167 --> 00:06:19,634 we use this opportunity uh to build awareness because unless 146 00:06:19,634 --> 00:06:21,667 build awareness because unless we convince you know most of 147 00:06:21,667 --> 00:06:23,934 we convince you know most of the population um that climate 148 00:06:23,934 --> 00:06:26,300 the population um that climate change is a big issue, we are 149 00:06:26,300 --> 00:06:28,800 change is a big issue, we are not going to have popular 150 00:06:28,800 --> 00:06:30,233 not going to have popular support for green spending, 151 00:06:30,233 --> 00:06:31,967 support for green spending, which is very much envisioned 152 00:06:31,967 --> 00:06:34,267 which is very much envisioned in the U recovery package Now 153 00:06:34,267 --> 00:06:36,634 in the U recovery package Now the final issue we need to pay 154 00:06:36,634 --> 00:06:40,466 the final issue we need to pay attention to is. Bankruptcy 155 00:06:40,466 --> 00:06:42,700 attention to is. Bankruptcy procedures you know, sadly, 156 00:06:42,700 --> 00:06:44,299 procedures you know, sadly, there will be lots of firms um 157 00:06:44,299 --> 00:06:46,933 there will be lots of firms um that will meet to go out of 158 00:06:46,933 --> 00:06:48,266 that will meet to go out of business and that needs to 159 00:06:48,266 --> 00:06:50,433 business and that needs to happen so that capital and 160 00:06:50,433 --> 00:06:53,600 happen so that capital and labor are free so they move 161 00:06:53,600 --> 00:06:55,833 labor are free so they move they can move to a new 162 00:06:55,833 --> 00:06:56,433 they can move to a new activities so the challenge 163 00:06:56,433 --> 00:06:58,799 activities so the challenge that will be facing us is how 164 00:06:58,799 --> 00:07:02,699 that will be facing us is how to deal with it um in a 165 00:07:02,699 --> 00:07:04,299 to deal with it um in a efficient and speedy manner. So 166 00:07:04,299 --> 00:07:06,434 efficient and speedy manner. So let’s me stop here. Thank you. 167 00:07:06,434 --> 00:07:07,933 let’s me stop here. Thank you. Thank you very much. This is a 168 00:07:07,933 --> 00:07:10,099 Thank you very much. This is a very uh illustration of the 169 00:07:10,099 --> 00:07:13,400 very uh illustration of the three very important points. A. 170 00:07:13,400 --> 00:07:14,934 three very important points. A. Come to the second point of the 171 00:07:14,934 --> 00:07:17,333 Come to the second point of the of the of the zombie firms uh 172 00:07:17,333 --> 00:07:20,000 of the of the zombie firms uh you mentioned it’s crucial not 173 00:07:20,000 --> 00:07:21,866 you mentioned it’s crucial not to allow for first to linger 174 00:07:21,866 --> 00:07:22,933 to allow for first to linger around so, in other words to 175 00:07:22,933 --> 00:07:24,201 around so, in other words to laugh for creative destruction, 176 00:07:24,201 --> 00:07:25,833 laugh for creative destruction, you know how easy is that going 177 00:07:25,833 --> 00:07:27,933 you know how easy is that going to be as we move forward When 178 00:07:27,933 --> 00:07:29,333 to be as we move forward When you know we have suspended the 179 00:07:29,333 --> 00:07:30,867 you know we have suspended the state of rules in Europe, some 180 00:07:30,867 --> 00:07:33,266 state of rules in Europe, some countries are choosing to 181 00:07:33,266 --> 00:07:33,866 countries are choosing to prolong uh uh being 182 00:07:33,866 --> 00:07:36,200 prolong uh uh being discriminate help uh is this is 183 00:07:36,200 --> 00:07:37,300 discriminate help uh is this is this something that you think 184 00:07:37,300 --> 00:07:39,499 this something that you think is in the antennas of policy 185 00:07:39,499 --> 00:07:40,867 is in the antennas of policy makers, or is this the first or 186 00:07:40,867 --> 00:07:43,566 makers, or is this the first or the problem? Just save 187 00:07:43,566 --> 00:07:47,333 the problem? Just save everybody who we can save for 188 00:07:47,333 --> 00:07:49,767 everybody who we can save for politicians, it’s incredibly 189 00:07:49,767 --> 00:07:52,133 politicians, it’s incredibly difficult um to sell the 190 00:07:52,133 --> 00:07:54,634 difficult um to sell the message that you know we cannot 191 00:07:54,634 --> 00:07:57,934 message that you know we cannot help everybody and that we are 192 00:07:57,934 --> 00:07:59,734 help everybody and that we are going to give preference to 193 00:07:59,734 --> 00:08:01,767 going to give preference to some sectors but not the others 194 00:08:01,767 --> 00:08:03,400 some sectors but not the others right and I think what helps 195 00:08:03,400 --> 00:08:06,900 right and I think what helps here is one um making the 196 00:08:06,900 --> 00:08:10,633 here is one um making the argument that it is key to um 197 00:08:10,633 --> 00:08:13,367 argument that it is key to um rescue firms sectors, which 198 00:08:13,367 --> 00:08:14,799 rescue firms sectors, which will be viable in the long run, 199 00:08:14,799 --> 00:08:16,233 will be viable in the long run, you know even obstructing from 200 00:08:16,233 --> 00:08:19,134 you know even obstructing from green issues. The world has 201 00:08:19,134 --> 00:08:23,034 green issues. The world has changed um hospitality industry 202 00:08:23,034 --> 00:08:25,666 changed um hospitality industry airlines are facing sort of 203 00:08:25,666 --> 00:08:28,400 airlines are facing sort of medium term or longer term 204 00:08:28,400 --> 00:08:30,801 medium term or longer term problems um and second is I 205 00:08:30,801 --> 00:08:34,634 problems um and second is I think we need to find a balance 206 00:08:34,634 --> 00:08:38,767 think we need to find a balance between being radical and yet 207 00:08:38,767 --> 00:08:41,700 between being radical and yet not moving before we build 208 00:08:41,700 --> 00:08:44,500 not moving before we build public support and the EBRD we 209 00:08:44,500 --> 00:08:47,600 public support and the EBRD we talked about tilting to green 210 00:08:47,600 --> 00:08:51,834 talked about tilting to green about. Slight preference um to 211 00:08:51,834 --> 00:08:54,767 about. Slight preference um to green activities about matching 212 00:08:54,767 --> 00:08:58,000 green activities about matching funds towards better behavior 213 00:08:58,000 --> 00:08:59,967 funds towards better behavior matching them towards improving 214 00:08:59,967 --> 00:09:01,967 matching them towards improving their energy efficiency doing 215 00:09:01,967 --> 00:09:04,266 their energy efficiency doing energy audits this closing 216 00:09:04,266 --> 00:09:05,866 energy audits this closing their environmental 217 00:09:05,866 --> 00:09:07,899 their environmental performance. So perhaps it’s 218 00:09:07,899 --> 00:09:09,267 performance. So perhaps it’s not about extremely radical 219 00:09:09,267 --> 00:09:12,000 not about extremely radical action, but it’s about small 220 00:09:12,000 --> 00:09:13,967 action, but it’s about small steps and matching. thank you 221 00:09:13,967 --> 00:09:15,266 steps and matching. thank you very much physiology. That’s 222 00:09:15,266 --> 00:09:17,066 very much physiology. That’s this they’re hoping that I 223 00:09:17,066 --> 00:09:17,867 this they’re hoping that I would get also some of the 224 00:09:17,867 --> 00:09:18,867 would get also some of the reactions on these issues with 225 00:09:18,867 --> 00:09:21,267 reactions on these issues with the other speakers may tend to 226 00:09:21,267 --> 00:09:23,066 the other speakers may tend to me now and and and bringing the 227 00:09:23,066 --> 00:09:27,667 me now and and and bringing the the issue of. Sovereign in the 228 00:09:27,667 --> 00:09:29,867 the issue of. Sovereign in the ECB almost immediately reacted 229 00:09:29,867 --> 00:09:32,600 ECB almost immediately reacted to the epidemic to the shutdown 230 00:09:32,600 --> 00:09:34,833 to the epidemic to the shutdown and invented the markets to 231 00:09:34,833 --> 00:09:36,433 and invented the markets to effectively allow countries to 232 00:09:36,433 --> 00:09:39,834 effectively allow countries to borrow as much as they need to 233 00:09:39,834 --> 00:09:41,199 borrow as much as they need to deal with the immediate threat 234 00:09:41,199 --> 00:09:42,800 deal with the immediate threat to the health issues, but then 235 00:09:42,800 --> 00:09:45,267 to the health issues, but then also beyond that uh to help 236 00:09:45,267 --> 00:09:46,966 also beyond that uh to help with a supporting the um those 237 00:09:46,966 --> 00:09:49,400 with a supporting the um those who need support in the economy 238 00:09:49,400 --> 00:09:50,033 who need support in the economy beyond that. We also have a 239 00:09:50,033 --> 00:09:51,700 beyond that. We also have a number of different now EU 240 00:09:51,700 --> 00:09:52,766 number of different now EU tools that have come in to play 241 00:09:52,766 --> 00:09:57,100 tools that have come in to play the European. In place um so 242 00:09:57,100 --> 00:09:58,200 the European. In place um so nevertheless, the countries 243 00:09:58,200 --> 00:10:01,900 nevertheless, the countries will come out of this um with 244 00:10:01,900 --> 00:10:03,733 will come out of this um with uh high debts sovereign debts 245 00:10:03,733 --> 00:10:05,866 uh high debts sovereign debts with came to the crisis with 246 00:10:05,866 --> 00:10:07,234 with came to the crisis with sizable deaths for a number of 247 00:10:07,234 --> 00:10:08,466 sizable deaths for a number of countries, which means that and 248 00:10:08,466 --> 00:10:09,967 countries, which means that and here is the question what would 249 00:10:09,967 --> 00:10:11,067 here is the question what would that mean for the vulnerability 250 00:10:11,067 --> 00:10:13,933 that mean for the vulnerability of fiscal sustainability for uh 251 00:10:13,933 --> 00:10:15,500 of fiscal sustainability for uh a number of countries if not uh 252 00:10:15,500 --> 00:10:17,500 a number of countries if not uh a good majority in the European 253 00:10:17,500 --> 00:10:18,666 a good majority in the European Union? actually there, I say 254 00:10:18,666 --> 00:10:21,834 Union? actually there, I say globally mister Trump your 255 00:10:21,834 --> 00:10:22,667 globally mister Trump your comments and thoughts on the 256 00:10:22,667 --> 00:10:24,801 comments and thoughts on the issue. Thank you very much. 257 00:10:24,801 --> 00:10:26,367 issue. Thank you very much. Thank you very much for 258 00:10:26,367 --> 00:10:28,834 Thank you very much for inviting me to the panel and as 259 00:10:28,834 --> 00:10:31,801 inviting me to the panel and as you said for us and it’s also 260 00:10:31,801 --> 00:10:33,200 you said for us and it’s also appropriate to look at it from 261 00:10:33,200 --> 00:10:35,500 appropriate to look at it from the perspective of the public 262 00:10:35,500 --> 00:10:36,133 the perspective of the public balance sheet, but it also 263 00:10:36,133 --> 00:10:39,167 balance sheet, but it also create a link to the private 264 00:10:39,167 --> 00:10:41,100 create a link to the private balance and what it means. I 265 00:10:41,100 --> 00:10:42,400 balance and what it means. I mean for me. The main point is 266 00:10:42,400 --> 00:10:44,667 mean for me. The main point is after you have had an initial 267 00:10:44,667 --> 00:10:47,300 after you have had an initial reaction to the crisis in order 268 00:10:47,300 --> 00:10:49,400 reaction to the crisis in order to address the frailties that 269 00:10:49,400 --> 00:10:50,767 to address the frailties that emerge from the crisis, and it 270 00:10:50,767 --> 00:10:52,033 emerge from the crisis, and it will be more specific on that 271 00:10:52,033 --> 00:10:55,266 will be more specific on that and in order to. The recovery 272 00:10:55,266 --> 00:10:57,299 and in order to. The recovery right we still need a 273 00:10:57,299 --> 00:10:59,300 right we still need a comprehensive policy response 274 00:10:59,300 --> 00:11:01,767 comprehensive policy response and I will also be telling more 275 00:11:01,767 --> 00:11:03,200 and I will also be telling more specifically what are the 276 00:11:03,200 --> 00:11:05,667 specifically what are the elements in my view of this 277 00:11:05,667 --> 00:11:08,600 elements in my view of this policy response Now First, we 278 00:11:08,600 --> 00:11:10,767 policy response Now First, we have to acknowledge that the 279 00:11:10,767 --> 00:11:13,833 have to acknowledge that the crisis has created a huge cost 280 00:11:13,833 --> 00:11:17,334 crisis has created a huge cost in terms of securing public 281 00:11:17,334 --> 00:11:20,466 in terms of securing public health and obviously uh a 282 00:11:20,466 --> 00:11:22,567 health and obviously uh a priority and had to be done and 283 00:11:22,567 --> 00:11:27,200 priority and had to be done and second. There was incredible 284 00:11:27,200 --> 00:11:29,834 second. There was incredible rapture of capitals of of of 285 00:11:29,834 --> 00:11:31,467 rapture of capitals of of of cash flows for companies and 286 00:11:31,467 --> 00:11:33,801 cash flows for companies and households, and that require 287 00:11:33,801 --> 00:11:36,200 households, and that require also government reaction and 288 00:11:36,200 --> 00:11:37,733 also government reaction and governments have reacted 289 00:11:37,733 --> 00:11:40,399 governments have reacted massively at the national and 290 00:11:40,399 --> 00:11:41,767 massively at the national and the European level. You 291 00:11:41,767 --> 00:11:44,199 the European level. You mentioned that and in my view, 292 00:11:44,199 --> 00:11:45,800 mentioned that and in my view, this was absolutely right uh 293 00:11:45,800 --> 00:11:48,767 this was absolutely right uh the right thing to do and the 294 00:11:48,767 --> 00:11:50,667 the right thing to do and the necessary steps to be taken in 295 00:11:50,667 --> 00:11:52,434 necessary steps to be taken in order to cushion what 296 00:11:52,434 --> 00:11:53,767 order to cushion what eventually turns out to be the 297 00:11:53,767 --> 00:11:57,400 eventually turns out to be the biggest possession um or. Time 298 00:11:57,400 --> 00:11:58,734 biggest possession um or. Time now, it’s just to give some 299 00:11:58,734 --> 00:12:01,967 now, it’s just to give some figures and clarify still the 300 00:12:01,967 --> 00:12:04,000 figures and clarify still the biggest part of measures are 301 00:12:04,000 --> 00:12:05,934 biggest part of measures are taken at the national level so 302 00:12:05,934 --> 00:12:08,434 taken at the national level so far your area governments as 303 00:12:08,434 --> 00:12:10,734 far your area governments as dedicated about three and a 304 00:12:10,734 --> 00:12:14,900 dedicated about three and a half 1000000000000 to address 305 00:12:14,900 --> 00:12:16,200 half 1000000000000 to address related to Corona and the 306 00:12:16,200 --> 00:12:19,801 related to Corona and the pandemic and crisis is fighting 307 00:12:19,801 --> 00:12:21,366 pandemic and crisis is fighting a big part of that actually 308 00:12:21,366 --> 00:12:23,833 a big part of that actually goes to is guarantees for the 309 00:12:23,833 --> 00:12:27,434 goes to is guarantees for the banks to support the. Secretary 310 00:12:27,434 --> 00:12:29,267 banks to support the. Secretary on top of that as you 311 00:12:29,267 --> 00:12:31,367 on top of that as you mentioned, Europe as taken 312 00:12:31,367 --> 00:12:33,800 mentioned, Europe as taken relatively bold decisions for 313 00:12:33,800 --> 00:12:35,433 relatively bold decisions for in order to support this this 314 00:12:35,433 --> 00:12:39,367 in order to support this this amount of all to 315 00:12:39,367 --> 00:12:40,633 amount of all to 1.3000000000000 here, there was 316 00:12:40,633 --> 00:12:42,834 1.3000000000000 here, there was the first package to support 317 00:12:42,834 --> 00:12:45,767 the first package to support workers firms and um the 318 00:12:45,767 --> 00:12:47,233 workers firms and um the sovereign and this is not being 319 00:12:47,233 --> 00:12:49,767 sovereign and this is not being implemented by the European 320 00:12:49,767 --> 00:12:53,299 implemented by the European Commission. Yes and and 321 00:12:53,299 --> 00:12:54,499 Commission. Yes and and European Investment Bank and 322 00:12:54,499 --> 00:12:59,166 European Investment Bank and then a 540000000000. 323 00:13:29,266 --> 00:13:31,734 What is the policy response? uh 324 00:13:31,734 --> 00:13:33,367 What is the policy response? uh that is not needed and what are 325 00:13:33,367 --> 00:13:35,900 that is not needed and what are the different areas here and 326 00:13:35,900 --> 00:13:37,200 the different areas here and first? I think it’s clear on 327 00:13:37,200 --> 00:13:39,666 first? I think it’s clear on the physical side that forward 328 00:13:39,666 --> 00:13:40,500 the physical side that forward forward-looking the policy 329 00:13:40,500 --> 00:13:44,066 forward-looking the policy makers have to manage the fine 330 00:13:44,066 --> 00:13:45,600 makers have to manage the fine line between support and 331 00:13:45,600 --> 00:13:46,667 line between support and securing financial 332 00:13:46,667 --> 00:13:49,867 securing financial sustainability And that means 333 00:13:49,867 --> 00:13:52,234 sustainability And that means that you have to become more 334 00:13:52,234 --> 00:13:56,800 that you have to become more targeted and become more growth 335 00:13:56,800 --> 00:13:59,967 targeted and become more growth oriented. So. 336 00:14:29,300 --> 00:14:30,800 That will be you know after the 337 00:14:30,800 --> 00:14:32,367 That will be you know after the crisis at the same time, we 338 00:14:32,367 --> 00:14:33,767 crisis at the same time, we have to acknowledge that we 339 00:14:33,767 --> 00:14:35,967 have to acknowledge that we live in this low interest rate 340 00:14:35,967 --> 00:14:37,466 live in this low interest rate environment and that interest 341 00:14:37,466 --> 00:14:40,400 environment and that interest rates will be very low for long 342 00:14:40,400 --> 00:14:41,967 rates will be very low for long and that creates a different 343 00:14:41,967 --> 00:14:45,334 and that creates a different dynamic um that one that we can 344 00:14:45,334 --> 00:14:47,934 dynamic um that one that we can count on and economists talk 345 00:14:47,934 --> 00:14:49,733 count on and economists talk about this difference between 346 00:14:49,733 --> 00:14:52,534 about this difference between our the rate and the growth 347 00:14:52,534 --> 00:14:55,701 our the rate and the growth rate, which now seems to point 348 00:14:55,701 --> 00:14:58,600 rate, which now seems to point to the possibility of actually 349 00:14:58,600 --> 00:15:02,000 to the possibility of actually growing out of. Uh that level 350 00:15:02,000 --> 00:15:03,801 growing out of. Uh that level and and reduce that levels 351 00:15:03,801 --> 00:15:05,600 and and reduce that levels through growth and it gives 352 00:15:05,600 --> 00:15:07,100 through growth and it gives more time for the fiscal 353 00:15:07,100 --> 00:15:09,534 more time for the fiscal adjustment pass that you can 354 00:15:09,534 --> 00:15:12,534 adjustment pass that you can see and that’s really a window 355 00:15:12,534 --> 00:15:13,766 see and that’s really a window of opportunity or an 356 00:15:13,766 --> 00:15:15,767 of opportunity or an opportunity in this regard. But 357 00:15:15,767 --> 00:15:17,366 opportunity in this regard. But it doesn’t say that it is self 358 00:15:17,366 --> 00:15:18,800 it doesn’t say that it is self evident. There’s still the 359 00:15:18,800 --> 00:15:21,266 evident. There’s still the requests or the the need for 360 00:15:21,266 --> 00:15:23,699 requests or the the need for governments to do some physical 361 00:15:23,699 --> 00:15:25,834 governments to do some physical adjustment over time and also 362 00:15:25,834 --> 00:15:27,934 adjustment over time and also indeed to support the growth 363 00:15:27,934 --> 00:15:31,533 indeed to support the growth enhancing measures. but. It can 364 00:15:31,533 --> 00:15:33,034 enhancing measures. but. It can be measured We also have to 365 00:15:33,034 --> 00:15:34,667 be measured We also have to acknowledge that along the way 366 00:15:34,667 --> 00:15:37,833 acknowledge that along the way there is a den risks markets 367 00:15:37,833 --> 00:15:39,834 there is a den risks markets that can become impatient 368 00:15:39,834 --> 00:15:42,434 that can become impatient markets can lose easily trust 369 00:15:42,434 --> 00:15:43,899 markets can lose easily trust and when that levels are high, 370 00:15:43,899 --> 00:15:45,700 and when that levels are high, this can lead to a market 371 00:15:45,700 --> 00:15:47,466 this can lead to a market volatility that we have 372 00:15:47,466 --> 00:15:50,300 volatility that we have experienced in the past so 373 00:15:50,300 --> 00:15:51,234 experienced in the past so first point all physical 374 00:15:51,234 --> 00:15:52,933 first point all physical policies need to be adjusted. 375 00:15:52,933 --> 00:15:54,567 policies need to be adjusted. Let me know turn to the 376 00:15:54,567 --> 00:15:56,633 Let me know turn to the corporate sector and only very 377 00:15:56,633 --> 00:15:59,200 corporate sector and only very briefly because a lot has been 378 00:15:59,200 --> 00:16:01,967 briefly because a lot has been said on that and more will be 379 00:16:01,967 --> 00:16:06,200 said on that and more will be said. Has increased clearly um 380 00:16:06,200 --> 00:16:08,433 said. Has increased clearly um both bank loans and through um 381 00:16:08,433 --> 00:16:11,234 both bank loans and through um in the capital market so far, 382 00:16:11,234 --> 00:16:13,233 in the capital market so far, we haven’t seen an increase in 383 00:16:13,233 --> 00:16:15,034 we haven’t seen an increase in in season bankruptcies and that 384 00:16:15,034 --> 00:16:17,366 in season bankruptcies and that is clearly the result of the 385 00:16:17,366 --> 00:16:20,000 is clearly the result of the policies or we provided 386 00:16:20,000 --> 00:16:22,233 policies or we provided actually just the case that 387 00:16:22,233 --> 00:16:23,733 actually just the case that insolvency and bankruptcy have 388 00:16:23,733 --> 00:16:25,234 insolvency and bankruptcy have declined to remain stable, but 389 00:16:25,234 --> 00:16:29,266 declined to remain stable, but this is about to change uh when 390 00:16:29,266 --> 00:16:30,934 this is about to change uh when support measures have to be 391 00:16:30,934 --> 00:16:34,301 support measures have to be faced out and we move. More 392 00:16:34,301 --> 00:16:37,766 faced out and we move. More less public support and more 393 00:16:37,766 --> 00:16:40,333 less public support and more capital market support of 394 00:16:40,333 --> 00:16:43,233 capital market support of private sector support, so this 395 00:16:43,233 --> 00:16:45,000 private sector support, so this will change and then there is 396 00:16:45,000 --> 00:16:47,366 will change and then there is the the possibility that this 397 00:16:47,366 --> 00:16:48,999 the the possibility that this has indeed long-term 398 00:16:48,999 --> 00:16:51,466 has indeed long-term repercussions because one can 399 00:16:51,466 --> 00:16:54,200 repercussions because one can expect that then bankruptcies 400 00:16:54,200 --> 00:16:55,267 expect that then bankruptcies will increase, which in turn 401 00:16:55,267 --> 00:16:56,767 will increase, which in turn means that we will be 402 00:16:56,767 --> 00:16:59,467 means that we will be destroying some creative. uh we 403 00:16:59,467 --> 00:17:00,900 destroying some creative. uh we will be destroying some 404 00:17:00,900 --> 00:17:03,534 will be destroying some equipment and some European 405 00:17:03,534 --> 00:17:06,834 equipment and some European commissioners. The overall 406 00:17:06,834 --> 00:17:09,766 commissioners. The overall equity law to a large extent 407 00:17:09,766 --> 00:17:11,933 equity law to a large extent also for the purposes will 408 00:17:11,933 --> 00:17:15,500 also for the purposes will amount to 720000000000 till the 409 00:17:15,500 --> 00:17:17,201 amount to 720000000000 till the end of the year of what we even 410 00:17:17,201 --> 00:17:18,767 end of the year of what we even to 1.2000000000000 so there 411 00:17:18,767 --> 00:17:21,234 to 1.2000000000000 so there will be big financing needs and 412 00:17:21,234 --> 00:17:22,667 will be big financing needs and those financing needs will 413 00:17:22,667 --> 00:17:24,434 those financing needs will continue. I fully agree that 414 00:17:24,434 --> 00:17:26,033 continue. I fully agree that those financing needs cannot be 415 00:17:26,033 --> 00:17:29,533 those financing needs cannot be all covered by banks and 416 00:17:29,533 --> 00:17:30,967 all covered by banks and standard loans, so we need to 417 00:17:30,967 --> 00:17:32,366 standard loans, so we need to look for alternative sources of 418 00:17:32,366 --> 00:17:35,734 look for alternative sources of finance and that is the. Policy 419 00:17:35,734 --> 00:17:36,967 finance and that is the. Policy response that needs to come in 420 00:17:36,967 --> 00:17:38,667 response that needs to come in after the fiscal policies and 421 00:17:38,667 --> 00:17:39,767 after the fiscal policies and then here we need to think 422 00:17:39,767 --> 00:17:43,299 then here we need to think about how to get for for small 423 00:17:43,299 --> 00:17:44,934 about how to get for for small and medium-sized enterprises 424 00:17:44,934 --> 00:17:49,700 and medium-sized enterprises and the access to equity and 425 00:17:49,700 --> 00:17:52,799 and the access to equity and capital markets Overall, How 426 00:17:52,799 --> 00:17:55,299 capital markets Overall, How will that migrate through the 427 00:17:55,299 --> 00:17:58,000 will that migrate through the banks possibly to the sovereign 428 00:17:58,000 --> 00:18:00,733 banks possibly to the sovereign balance sheet again looking at 429 00:18:00,733 --> 00:18:01,867 balance sheet again looking at the current situation we have 430 00:18:01,867 --> 00:18:03,866 the current situation we have to acknowledge that the banks 431 00:18:03,866 --> 00:18:06,400 to acknowledge that the banks are actually very much improved 432 00:18:06,400 --> 00:18:07,934 are actually very much improved their position over the past 433 00:18:07,934 --> 00:18:09,399 their position over the past decade as the repercussion of 434 00:18:09,399 --> 00:18:12,933 decade as the repercussion of the last. And the uh uh the EB 435 00:18:12,933 --> 00:18:15,200 the last. And the uh uh the EB a has looked at it. The ECB has 436 00:18:15,200 --> 00:18:16,800 a has looked at it. The ECB has look at the governors may say 437 00:18:16,800 --> 00:18:19,201 look at the governors may say more about it, but my reading 438 00:18:19,201 --> 00:18:20,634 more about it, but my reading and understanding of the 439 00:18:20,634 --> 00:18:21,867 and understanding of the vulnerability exercises that 440 00:18:21,867 --> 00:18:23,467 vulnerability exercises that have been done is that there is 441 00:18:23,467 --> 00:18:27,467 have been done is that there is quite a significant capital 442 00:18:27,467 --> 00:18:29,867 quite a significant capital buffer available sizable 443 00:18:29,867 --> 00:18:32,700 buffer available sizable capital available in order to 444 00:18:32,700 --> 00:18:34,267 capital available in order to whether the repercussions of 445 00:18:34,267 --> 00:18:37,801 whether the repercussions of the crisis so that we can take 446 00:18:37,801 --> 00:18:39,467 the crisis so that we can take some comfort of from the side 447 00:18:39,467 --> 00:18:42,133 some comfort of from the side and in the exercise that. UCB 448 00:18:42,133 --> 00:18:46,333 and in the exercise that. UCB has done also the assumption is 449 00:18:46,333 --> 00:18:47,900 has done also the assumption is and the analysis is that 450 00:18:47,900 --> 00:18:50,267 and the analysis is that actually the full out of the 451 00:18:50,267 --> 00:18:51,066 actually the full out of the guarantees for the public 452 00:18:51,066 --> 00:18:55,134 guarantees for the public balance sheet may be limited 453 00:18:55,134 --> 00:18:58,700 balance sheet may be limited and maybe it manageable. So I 454 00:18:58,700 --> 00:18:59,933 and maybe it manageable. So I take that over overall as a 455 00:18:59,933 --> 00:19:01,234 take that over overall as a good news, but at the same time 456 00:19:01,234 --> 00:19:02,734 good news, but at the same time we need to acknowledge that 457 00:19:02,734 --> 00:19:05,000 we need to acknowledge that there are three caveats to this 458 00:19:05,000 --> 00:19:06,767 there are three caveats to this or three notions of caution. 459 00:19:06,767 --> 00:19:08,767 or three notions of caution. One not being is that what’s 460 00:19:08,767 --> 00:19:10,000 One not being is that what’s for the sector overall may not 461 00:19:10,000 --> 00:19:12,934 for the sector overall may not hold for each. So that maybe 462 00:19:12,934 --> 00:19:15,034 hold for each. So that maybe weaknesses that maybe unevenly 463 00:19:15,034 --> 00:19:16,767 weaknesses that maybe unevenly distributed the cross-country 464 00:19:16,767 --> 00:19:18,667 distributed the cross-country second point is the longer the 465 00:19:18,667 --> 00:19:20,201 second point is the longer the crisis lasts the more expensive 466 00:19:20,201 --> 00:19:21,967 crisis lasts the more expensive it becomes and as you move 467 00:19:21,967 --> 00:19:23,167 it becomes and as you move forward, it will be more 468 00:19:23,167 --> 00:19:24,433 forward, it will be more complicated for companies, 469 00:19:24,433 --> 00:19:25,767 complicated for companies, which means more and more 470 00:19:25,767 --> 00:19:27,533 which means more and more performing loans, which means 471 00:19:27,533 --> 00:19:30,766 performing loans, which means possibly more repercussions for 472 00:19:30,766 --> 00:19:32,633 possibly more repercussions for public balance sheets and that 473 00:19:32,633 --> 00:19:34,699 public balance sheets and that has to be um also taken into 474 00:19:34,699 --> 00:19:36,600 has to be um also taken into the third point is that the 475 00:19:36,600 --> 00:19:38,767 the third point is that the euro area banking sector still 476 00:19:38,767 --> 00:19:40,000 euro area banking sector still has a profitability problem, 477 00:19:40,000 --> 00:19:43,967 has a profitability problem, and that is also. In the book 478 00:19:43,967 --> 00:19:45,399 and that is also. In the book values, which means that we own 479 00:19:45,399 --> 00:19:47,767 values, which means that we own capital generating capabilities 480 00:19:47,767 --> 00:19:49,634 capital generating capabilities of the banking sector limited, 481 00:19:49,634 --> 00:19:50,967 of the banking sector limited, so it’s support that is needed. 482 00:19:50,967 --> 00:19:52,600 so it’s support that is needed. We’ll also have to come from 483 00:19:52,600 --> 00:19:54,799 We’ll also have to come from the public site and in turn 484 00:19:54,799 --> 00:19:56,700 the public site and in turn that means we need to create 485 00:19:56,700 --> 00:19:58,233 that means we need to create the conditions for profitable 486 00:19:58,233 --> 00:19:59,733 the conditions for profitable banker or profitable banking 487 00:19:59,733 --> 00:20:02,167 banker or profitable banking sector, and that is a big call 488 00:20:02,167 --> 00:20:03,833 sector, and that is a big call for the completion of banking 489 00:20:03,833 --> 00:20:06,400 for the completion of banking union and that’s the third 490 00:20:06,400 --> 00:20:08,667 union and that’s the third element of the policy response 491 00:20:08,667 --> 00:20:10,400 element of the policy response to move ahead in completing 492 00:20:10,400 --> 00:20:11,799 to move ahead in completing banking unit and creating the 493 00:20:11,799 --> 00:20:14,233 banking unit and creating the conditions for a profitable 494 00:20:14,233 --> 00:20:15,967 conditions for a profitable integrated banking market so 495 00:20:15,967 --> 00:20:20,900 integrated banking market so far. My view on a comprehensive 496 00:20:20,900 --> 00:20:23,467 far. My view on a comprehensive policy response that is needed 497 00:20:23,467 --> 00:20:25,866 policy response that is needed making physical policy targeted 498 00:20:25,866 --> 00:20:29,667 making physical policy targeted towards growth generating uh 499 00:20:29,667 --> 00:20:31,233 towards growth generating uh financing sources and 500 00:20:31,233 --> 00:20:32,999 financing sources and completing banking union. I 501 00:20:32,999 --> 00:20:34,367 completing banking union. I stopped here. Thank you. Thank 502 00:20:34,367 --> 00:20:36,299 stopped here. Thank you. Thank you very much mister star. So 503 00:20:36,299 --> 00:20:37,600 you very much mister star. So this is a very important 504 00:20:37,600 --> 00:20:39,266 this is a very important intervention and you know if I 505 00:20:39,266 --> 00:20:40,900 intervention and you know if I may dwell a little bit on your 506 00:20:40,900 --> 00:20:42,201 may dwell a little bit on your last point because I think this 507 00:20:42,201 --> 00:20:45,066 last point because I think this is uh at the time cone where we 508 00:20:45,066 --> 00:20:47,167 is uh at the time cone where we are right now, the one issue 509 00:20:47,167 --> 00:20:49,067 are right now, the one issue that has been discussed 510 00:20:49,067 --> 00:20:51,333 that has been discussed extensively. Exactly this your 511 00:20:51,333 --> 00:20:53,700 extensively. Exactly this your last point as to how likely is 512 00:20:53,700 --> 00:20:55,300 last point as to how likely is it that this economic crisis, 513 00:20:55,300 --> 00:20:57,433 it that this economic crisis, what started as an economic 514 00:20:57,433 --> 00:21:00,199 what started as an economic crisis may turn out transform I 515 00:21:00,199 --> 00:21:01,867 crisis may turn out transform I think call transitions into 516 00:21:01,867 --> 00:21:03,467 think call transitions into effectively financial crisis 517 00:21:03,467 --> 00:21:06,699 effectively financial crisis and and you know I am reassured 518 00:21:06,699 --> 00:21:08,366 and and you know I am reassured to uh to hear uh uh your 519 00:21:08,366 --> 00:21:09,467 to uh to hear uh uh your intervention in this respect 520 00:21:09,467 --> 00:21:11,167 intervention in this respect where I mean, you know there’s 521 00:21:11,167 --> 00:21:12,267 where I mean, you know there’s certain of course is very high, 522 00:21:12,267 --> 00:21:13,967 certain of course is very high, but at least the banking sector 523 00:21:13,967 --> 00:21:15,267 but at least the banking sector is in a much better position 524 00:21:15,267 --> 00:21:17,133 is in a much better position now in terms of having buffers 525 00:21:17,133 --> 00:21:18,467 now in terms of having buffers uh by comparison to what it was 526 00:21:18,467 --> 00:21:20,766 uh by comparison to what it was uh let. 10 years 10 years ago 527 00:21:20,766 --> 00:21:22,733 uh let. 10 years 10 years ago when we got into the financial 528 00:21:22,733 --> 00:21:23,867 when we got into the financial crisis, so you know in as much 529 00:21:23,867 --> 00:21:24,800 crisis, so you know in as much as one can prepare for these 530 00:21:24,800 --> 00:21:27,000 as one can prepare for these things so the banking the 531 00:21:27,000 --> 00:21:27,867 things so the banking the financial sector in general is 532 00:21:27,867 --> 00:21:29,767 financial sector in general is much better prepared. I would 533 00:21:29,767 --> 00:21:31,334 much better prepared. I would be interested to hear uh the 534 00:21:31,334 --> 00:21:33,767 be interested to hear uh the governor’s uh uh uh infusion 535 00:21:33,767 --> 00:21:36,600 governor’s uh uh uh infusion this and I hear your uh p for 536 00:21:36,600 --> 00:21:37,967 this and I hear your uh p for completing uh the banking union 537 00:21:37,967 --> 00:21:39,600 completing uh the banking union and I hope we can also talk 538 00:21:39,600 --> 00:21:41,666 and I hope we can also talk about making progress on 539 00:21:41,666 --> 00:21:43,200 about making progress on capital markets union, but I’m 540 00:21:43,200 --> 00:21:44,834 capital markets union, but I’m hoping we can we can return to 541 00:21:44,834 --> 00:21:47,267 hoping we can we can return to that. um let me go to perhaps 542 00:21:47,267 --> 00:21:51,467 that. um let me go to perhaps at ask. To my initial points on 543 00:21:51,467 --> 00:21:52,700 at ask. To my initial points on the one issue that we heard 544 00:21:52,700 --> 00:21:54,300 the one issue that we heard from both the previous 545 00:21:54,300 --> 00:21:56,834 from both the previous speakers, there will be more um 546 00:21:56,834 --> 00:21:59,201 speakers, there will be more um cooperating solves as the 547 00:21:59,201 --> 00:22:02,467 cooperating solves as the fiscal drip um stops uh when it 548 00:22:02,467 --> 00:22:05,733 fiscal drip um stops uh when it stops the world necessarily be 549 00:22:05,733 --> 00:22:07,400 stops the world necessarily be um companies that will not make 550 00:22:07,400 --> 00:22:09,834 um companies that will not make it how well prepared to deal 551 00:22:09,834 --> 00:22:13,933 it how well prepared to deal with the bulk whatever that is 552 00:22:13,933 --> 00:22:16,800 with the bulk whatever that is um on on corporate um ins and 553 00:22:16,800 --> 00:22:19,400 um on on corporate um ins and Mikey you have worked on. The 554 00:22:19,400 --> 00:22:20,699 Mikey you have worked on. The issues before and you have a 555 00:22:20,699 --> 00:22:23,299 issues before and you have a specialized in so can you give 556 00:22:23,299 --> 00:22:24,867 specialized in so can you give us your views on on on how well 557 00:22:24,867 --> 00:22:26,467 us your views on on on how well we are prepared this time and 558 00:22:26,467 --> 00:22:28,834 we are prepared this time and make we compare it to um you 559 00:22:28,834 --> 00:22:30,266 make we compare it to um you know the previous uh financial 560 00:22:30,266 --> 00:22:32,699 know the previous uh financial crisis where we were basically 561 00:22:32,699 --> 00:22:34,133 crisis where we were basically unprepared for something uh of 562 00:22:34,133 --> 00:22:36,633 unprepared for something uh of that bulk you do. Thank you. 563 00:22:36,633 --> 00:22:38,333 that bulk you do. Thank you. Thank you very much for the 564 00:22:38,333 --> 00:22:39,934 Thank you very much for the invitation. Uh yes, it’s very 565 00:22:39,934 --> 00:22:41,200 invitation. Uh yes, it’s very important to understand that 566 00:22:41,200 --> 00:22:42,400 important to understand that corporate instruments are 567 00:22:42,400 --> 00:22:44,834 corporate instruments are critical in order to tackle the 568 00:22:44,834 --> 00:22:45,833 critical in order to tackle the issues that we’re gonna face 569 00:22:45,833 --> 00:22:46,600 issues that we’re gonna face when it comes to dealing with 570 00:22:46,600 --> 00:22:49,500 when it comes to dealing with corporate debt. Look back and 571 00:22:49,500 --> 00:22:50,000 corporate debt. Look back and what we look at what has 572 00:22:50,000 --> 00:22:51,933 what we look at what has happened after the big 573 00:22:51,933 --> 00:22:54,699 happened after the big financial crisis in 2008, we 574 00:22:54,699 --> 00:22:56,201 financial crisis in 2008, we realized that one of the reason 575 00:22:56,201 --> 00:22:58,666 realized that one of the reason why the US economy managed we 576 00:22:58,666 --> 00:23:00,600 why the US economy managed we faster than the European one 577 00:23:00,600 --> 00:23:01,967 faster than the European one was because of their chapter. 578 00:23:01,967 --> 00:23:05,201 was because of their chapter. So the inserts look and that’s 579 00:23:05,201 --> 00:23:08,566 So the inserts look and that’s really uh was uh uh a critical 580 00:23:08,566 --> 00:23:09,801 really uh was uh uh a critical exam to do because after that, 581 00:23:09,801 --> 00:23:12,400 exam to do because after that, it was a lot of energy was put 582 00:23:12,400 --> 00:23:15,733 it was a lot of energy was put on I made by the institution to 583 00:23:15,733 --> 00:23:18,967 on I made by the institution to work on better in some laws in 584 00:23:18,967 --> 00:23:23,199 work on better in some laws in uh. In 2012 1 year ago in 2019, 585 00:23:23,199 --> 00:23:25,366 uh. In 2012 1 year ago in 2019, that was this uh researching 586 00:23:25,366 --> 00:23:26,266 that was this uh researching directive approved by the 587 00:23:26,266 --> 00:23:28,767 directive approved by the European Union invoice a major 588 00:23:28,767 --> 00:23:32,800 European Union invoice a major step in order to facilitate the 589 00:23:32,800 --> 00:23:33,734 step in order to facilitate the swap. So what do we mean by 590 00:23:33,734 --> 00:23:36,000 swap. So what do we mean by that? we mean by the convention 591 00:23:36,000 --> 00:23:39,267 that? we mean by the convention of debt into equity, even if 592 00:23:39,267 --> 00:23:41,300 of debt into equity, even if there’s descending creators and 593 00:23:41,300 --> 00:23:42,334 there’s descending creators and descending shareholders in the 594 00:23:42,334 --> 00:23:44,000 descending shareholders in the company, and we understand why 595 00:23:44,000 --> 00:23:45,433 company, and we understand why it’s so important because when 596 00:23:45,433 --> 00:23:46,967 it’s so important because when it comes to make sure that all 597 00:23:46,967 --> 00:23:48,200 it comes to make sure that all the resources of the companion 598 00:23:48,200 --> 00:23:51,067 the resources of the companion are not. To only remember of 599 00:23:51,067 --> 00:23:54,401 are not. To only remember of the dead but also use to 600 00:23:54,401 --> 00:23:55,933 the dead but also use to finance growth, so that means 601 00:23:55,933 --> 00:23:57,233 finance growth, so that means to make investments, it’s 602 00:23:57,233 --> 00:23:58,800 to make investments, it’s really critical to make sure 603 00:23:58,800 --> 00:24:02,300 really critical to make sure that these dedicated swap and 604 00:24:02,300 --> 00:24:05,100 that these dedicated swap and very quickly. it was a really 605 00:24:05,100 --> 00:24:07,767 very quickly. it was a really good because so this new 606 00:24:07,767 --> 00:24:08,834 good because so this new director reflects to some 607 00:24:08,834 --> 00:24:10,667 director reflects to some extent the features of the US 608 00:24:10,667 --> 00:24:12,633 extent the features of the US chateau when there was also a 609 00:24:12,633 --> 00:24:14,200 chateau when there was also a combination of other roles like 610 00:24:14,200 --> 00:24:17,167 combination of other roles like the UK scheme arrangement, and 611 00:24:17,167 --> 00:24:19,099 the UK scheme arrangement, and it was a kind of a big change 612 00:24:19,099 --> 00:24:21,266 it was a kind of a big change of culture among my mistakes. 613 00:24:21,266 --> 00:24:24,366 of culture among my mistakes. Uh it was after. Of yours, a 614 00:24:24,366 --> 00:24:27,800 Uh it was after. Of yours, a lot of negotiations uh it’s not 615 00:24:27,800 --> 00:24:30,500 lot of negotiations uh it’s not perfect Never is never nothing 616 00:24:30,500 --> 00:24:31,933 perfect Never is never nothing is perfect in this world, but 617 00:24:31,933 --> 00:24:34,367 is perfect in this world, but at least it was a right 618 00:24:34,367 --> 00:24:35,300 at least it was a right direction to mention to the 619 00:24:35,300 --> 00:24:38,234 direction to mention to the among the states so far now a 620 00:24:38,234 --> 00:24:39,967 among the states so far now a family where only the 621 00:24:39,967 --> 00:24:42,667 family where only the Netherlands are enacted the law 622 00:24:42,667 --> 00:24:44,301 Netherlands are enacted the law after the adoption of the 623 00:24:44,301 --> 00:24:46,399 after the adoption of the directives so they still work 624 00:24:46,399 --> 00:24:47,667 directives so they still work to do those are the numbers 625 00:24:47,667 --> 00:24:50,200 to do those are the numbers that have 2 years after the 626 00:24:50,200 --> 00:24:51,600 that have 2 years after the adoption of the diet so until 627 00:24:51,600 --> 00:24:56,000 adoption of the diet so until 2000. So 2021 to uh adopt a 628 00:24:56,000 --> 00:24:57,500 2000. So 2021 to uh adopt a directive so they still work to 629 00:24:57,500 --> 00:25:00,099 directive so they still work to do but they are progress uh 630 00:25:00,099 --> 00:25:02,933 do but they are progress uh which are in the world. um the 631 00:25:02,933 --> 00:25:05,834 which are in the world. um the on the side the the UK uh quite 632 00:25:05,834 --> 00:25:07,766 on the side the the UK uh quite a Spotify, the UK, and of 633 00:25:07,766 --> 00:25:08,767 a Spotify, the UK, and of course they are not bound by 634 00:25:08,767 --> 00:25:10,800 course they are not bound by the terms of the dieting now 635 00:25:10,800 --> 00:25:13,200 the terms of the dieting now and unfortunately they have 636 00:25:13,200 --> 00:25:15,100 and unfortunately they have already uh approved a big 637 00:25:15,100 --> 00:25:17,167 already uh approved a big reforms. It’s gonna change the 638 00:25:17,167 --> 00:25:20,533 reforms. It’s gonna change the landscape. what remains to be 639 00:25:20,533 --> 00:25:23,234 landscape. what remains to be done. I said that the new 640 00:25:23,234 --> 00:25:25,267 done. I said that the new directives is pointing at the 641 00:25:25,267 --> 00:25:28,367 directives is pointing at the right direction but uh it’s not 642 00:25:28,367 --> 00:25:30,934 right direction but uh it’s not perfect um for sure the 643 00:25:30,934 --> 00:25:33,333 perfect um for sure the diabetes was focus on the idea 644 00:25:33,333 --> 00:25:34,934 diabetes was focus on the idea of restoring balance, which 645 00:25:34,934 --> 00:25:37,200 of restoring balance, which means big companies because for 646 00:25:37,200 --> 00:25:40,200 means big companies because for small companies we have I think 647 00:25:40,200 --> 00:25:42,734 small companies we have I think to uh accept the idea that for 648 00:25:42,734 --> 00:25:44,334 to uh accept the idea that for small companies for founders 649 00:25:44,334 --> 00:25:47,266 small companies for founders the best solution is often the 650 00:25:47,266 --> 00:25:49,767 the best solution is often the liquidation but provided that 651 00:25:49,767 --> 00:25:51,900 liquidation but provided that we let them buying a set if. 652 00:25:51,900 --> 00:25:55,334 we let them buying a set if. Possible in in in in in doing 653 00:25:55,334 --> 00:25:57,067 Possible in in in in in doing the bankruptcy city and that’s 654 00:25:57,067 --> 00:25:59,200 the bankruptcy city and that’s an idea which is difficult to 655 00:25:59,200 --> 00:26:00,833 an idea which is difficult to accept by I think it was 656 00:26:00,833 --> 00:26:02,299 accept by I think it was disgusting by the first 657 00:26:02,299 --> 00:26:04,733 disgusting by the first panelist uh sometimes it’s hard 658 00:26:04,733 --> 00:26:06,466 panelist uh sometimes it’s hard for politicians to understand 659 00:26:06,466 --> 00:26:07,833 for politicians to understand that maybe the best solution is 660 00:26:07,833 --> 00:26:10,534 that maybe the best solution is to let liquidate and to find a 661 00:26:10,534 --> 00:26:13,266 to let liquidate and to find a way to relocate assets very 662 00:26:13,266 --> 00:26:15,234 way to relocate assets very quickly on that. This is a 663 00:26:15,234 --> 00:26:17,234 quickly on that. This is a still a work to be done for the 664 00:26:17,234 --> 00:26:19,134 still a work to be done for the next. I don’t know what is that 665 00:26:19,134 --> 00:26:22,266 next. I don’t know what is that what is the time to go to the? 666 00:26:22,266 --> 00:26:24,933 what is the time to go to the? But I hope that we will be uh a 667 00:26:24,933 --> 00:26:26,934 But I hope that we will be uh a new project starting very soon. 668 00:26:26,934 --> 00:26:30,234 new project starting very soon. Second, I think uh if we focus 669 00:26:30,234 --> 00:26:33,266 Second, I think uh if we focus again now um about uh big 670 00:26:33,266 --> 00:26:34,967 again now um about uh big companies, I think we need to 671 00:26:34,967 --> 00:26:37,634 companies, I think we need to better work on incentives 672 00:26:37,634 --> 00:26:39,801 better work on incentives whether that mean when it comes 673 00:26:39,801 --> 00:26:41,333 whether that mean when it comes to restricting balance sheets 674 00:26:41,333 --> 00:26:43,733 to restricting balance sheets we we are talking about people 675 00:26:43,733 --> 00:26:46,266 we we are talking about people sitting at the table and agree 676 00:26:46,266 --> 00:26:48,000 sitting at the table and agree on the strategic plan and we 677 00:26:48,000 --> 00:26:49,434 on the strategic plan and we need to make sure that the 678 00:26:49,434 --> 00:26:50,734 need to make sure that the people are around the table at 679 00:26:50,734 --> 00:26:53,000 people are around the table at the right incentive to agree 680 00:26:53,000 --> 00:26:56,367 the right incentive to agree on. Which is some for the 681 00:26:56,367 --> 00:26:58,733 on. Which is some for the company as fast as possible, 682 00:26:58,733 --> 00:26:59,334 company as fast as possible, sometimes because of the 683 00:26:59,334 --> 00:27:01,800 sometimes because of the incentive of the marketplace 684 00:27:01,800 --> 00:27:04,233 incentive of the marketplace sequence. uh there’s uh it’s 685 00:27:04,233 --> 00:27:06,000 sequence. uh there’s uh it’s not always the right agreement, 686 00:27:06,000 --> 00:27:07,800 not always the right agreement, which is a sheep. I’m just to 687 00:27:07,800 --> 00:27:09,300 which is a sheep. I’m just to give you an idea and it’s when 688 00:27:09,300 --> 00:27:10,634 give you an idea and it’s when it comes to uh bankruptcy 689 00:27:10,634 --> 00:27:13,633 it comes to uh bankruptcy trustee or in practitioners 690 00:27:13,633 --> 00:27:15,233 trustee or in practitioners that incentives are in the low 691 00:27:15,233 --> 00:27:17,400 that incentives are in the low in the back of zero and if 692 00:27:17,400 --> 00:27:18,866 in the back of zero and if they’re on the incentives can 693 00:27:18,866 --> 00:27:21,534 they’re on the incentives can be can go against the maxim of 694 00:27:21,534 --> 00:27:24,500 be can go against the maxim of the assets and against. The 695 00:27:24,500 --> 00:27:26,799 the assets and against. The conclusion of a which is some 696 00:27:26,799 --> 00:27:28,834 conclusion of a which is some from as far as on the first 697 00:27:28,834 --> 00:27:31,200 from as far as on the first time what we see for instance, 698 00:27:31,200 --> 00:27:33,700 time what we see for instance, right now in France that during 699 00:27:33,700 --> 00:27:36,434 right now in France that during the after the the big crisis we 700 00:27:36,434 --> 00:27:38,733 the after the the big crisis we have seen sometimes many 701 00:27:38,733 --> 00:27:40,699 have seen sometimes many agreement to be quickly 702 00:27:40,699 --> 00:27:42,734 agreement to be quickly approved out of uh out of from 703 00:27:42,734 --> 00:27:44,899 approved out of uh out of from a bankruptcy so it was in a way 704 00:27:44,899 --> 00:27:47,333 a bankruptcy so it was in a way uh uh you could say a good 705 00:27:47,333 --> 00:27:48,634 uh uh you could say a good achievement but when you look 706 00:27:48,634 --> 00:27:51,000 achievement but when you look at it more thoroughly what you 707 00:27:51,000 --> 00:27:54,234 at it more thoroughly what you realize is actually it’s the. 708 00:27:54,234 --> 00:27:57,133 realize is actually it’s the. There’s not enough work done so 709 00:27:57,133 --> 00:27:59,167 There’s not enough work done so the in that deep enough so you 710 00:27:59,167 --> 00:28:01,567 the in that deep enough so you see many companies again at the 711 00:28:01,567 --> 00:28:03,100 see many companies again at the table of negotiation 1 year 712 00:28:03,100 --> 00:28:05,267 table of negotiation 1 year after a third time and not 2 713 00:28:05,267 --> 00:28:06,867 after a third time and not 2 years after and that takes too 714 00:28:06,867 --> 00:28:09,399 years after and that takes too much time. so we need to find a 715 00:28:09,399 --> 00:28:10,933 much time. so we need to find a way to make sure that the 716 00:28:10,933 --> 00:28:14,267 way to make sure that the markets for one of the rights 717 00:28:14,267 --> 00:28:16,800 markets for one of the rights the also the second example, 718 00:28:16,800 --> 00:28:18,867 the also the second example, can maybe I can give is the the 719 00:28:18,867 --> 00:28:21,100 can maybe I can give is the the the is the best we have seen 720 00:28:21,100 --> 00:28:22,599 the is the best we have seen over the last 10 years and that 721 00:28:22,599 --> 00:28:26,367 over the last 10 years and that the banks are leaked to. See 722 00:28:26,367 --> 00:28:27,667 the banks are leaked to. See that that’s the claims 723 00:28:27,667 --> 00:28:29,367 that that’s the claims basically be converting into 724 00:28:29,367 --> 00:28:31,966 basically be converting into equity and that’s on the best 725 00:28:31,966 --> 00:28:33,300 equity and that’s on the best incentive when I when compared 726 00:28:33,300 --> 00:28:35,967 incentive when I when compared the the the the institution 727 00:28:35,967 --> 00:28:39,966 the the the the institution with the US one is is is always 728 00:28:39,966 --> 00:28:41,667 with the US one is is is always at the develop of the bank when 729 00:28:41,667 --> 00:28:43,733 at the develop of the bank when when it comes to uh writing of 730 00:28:43,733 --> 00:28:46,200 when it comes to uh writing of the nonprofit loans. so one of 731 00:28:46,200 --> 00:28:48,000 the nonprofit loans. so one of the big uh shipment that the US 732 00:28:48,000 --> 00:28:50,967 the big uh shipment that the US has I’ve done doing the last in 733 00:28:50,967 --> 00:28:53,434 has I’ve done doing the last in my group, but I’m not in only a 734 00:28:53,434 --> 00:28:56,700 my group, but I’m not in only a lawyers was to was to. The the 735 00:28:56,700 --> 00:28:58,967 lawyers was to was to. The the the US banks to actually 736 00:28:58,967 --> 00:29:00,600 the US banks to actually restructure the NPR faster than 737 00:29:00,600 --> 00:29:03,234 restructure the NPR faster than the the the one and uh I think 738 00:29:03,234 --> 00:29:05,700 the the the one and uh I think it’s really important to to 739 00:29:05,700 --> 00:29:07,034 it’s really important to to build this in man and to make 740 00:29:07,034 --> 00:29:08,234 build this in man and to make sure that we we do not do again 741 00:29:08,234 --> 00:29:09,667 sure that we we do not do again the same mistake that we don’t, 742 00:29:09,667 --> 00:29:11,300 the same mistake that we don’t, I think uh right after the 743 00:29:11,300 --> 00:29:13,233 I think uh right after the financial crisis because if at 744 00:29:13,233 --> 00:29:15,466 financial crisis because if at the table, the bankers do not 745 00:29:15,466 --> 00:29:18,700 the table, the bankers do not have any incentive to uh to 746 00:29:18,700 --> 00:29:20,300 have any incentive to uh to convert that into equity 747 00:29:20,300 --> 00:29:22,000 convert that into equity because in in their portfolio 748 00:29:22,000 --> 00:29:23,633 because in in their portfolio is not considered as a non 749 00:29:23,633 --> 00:29:28,567 is not considered as a non profit a loan yet uh we even. 750 00:30:00,933 --> 00:30:04,000 Of the Dalai make a discussion 751 00:30:04,000 --> 00:30:06,266 Of the Dalai make a discussion in courts if there is a formal 752 00:30:06,266 --> 00:30:07,867 in courts if there is a formal bankruptcy so the fall back 753 00:30:07,867 --> 00:30:11,333 bankruptcy so the fall back position the form of it is 754 00:30:11,333 --> 00:30:13,266 position the form of it is critical in order to favor out 755 00:30:13,266 --> 00:30:16,833 critical in order to favor out of a bankruptcy on if you want 756 00:30:16,833 --> 00:30:19,767 of a bankruptcy on if you want to uh facilitate the process, 757 00:30:19,767 --> 00:30:20,867 to uh facilitate the process, you need to make sure that you 758 00:30:20,867 --> 00:30:23,634 you need to make sure that you have the right also uh at the 759 00:30:23,634 --> 00:30:25,533 have the right also uh at the table or 1 day, a former bank 760 00:30:25,533 --> 00:30:26,933 table or 1 day, a former bank of civil proceedings and 761 00:30:26,933 --> 00:30:28,266 of civil proceedings and there’s a three courses. This 762 00:30:28,266 --> 00:30:31,800 there’s a three courses. This was not. Mandates that this was 763 00:30:31,800 --> 00:30:34,367 was not. Mandates that this was not part of the of the 764 00:30:34,367 --> 00:30:35,667 not part of the of the institution doing the last 765 00:30:35,667 --> 00:30:37,167 institution doing the last reform and we understand why 766 00:30:37,167 --> 00:30:39,133 reform and we understand why it’s called it’s it’s really 767 00:30:39,133 --> 00:30:42,100 it’s called it’s it’s really related to the culture of each 768 00:30:42,100 --> 00:30:43,867 related to the culture of each country uh and it’s really 769 00:30:43,867 --> 00:30:45,300 country uh and it’s really difficult to to to move on this 770 00:30:45,300 --> 00:30:47,767 difficult to to to move on this topic and to our but I think we 771 00:30:47,767 --> 00:30:49,966 topic and to our but I think we still need to try to to move on 772 00:30:49,966 --> 00:30:51,767 still need to try to to move on to this topic because it’s 773 00:30:51,767 --> 00:30:52,867 to this topic because it’s really important and without 774 00:30:52,867 --> 00:30:54,899 really important and without more than quote without 775 00:30:54,899 --> 00:30:55,933 more than quote without sophisticated, maybe judges, 776 00:30:55,933 --> 00:30:57,700 sophisticated, maybe judges, which have been has been 777 00:30:57,700 --> 00:31:01,000 which have been has been lawyers before like. 778 00:31:01,234 --> 00:31:03,900 We cannot uh basically you big 779 00:31:03,900 --> 00:31:06,400 We cannot uh basically you big companies with very complex 780 00:31:06,400 --> 00:31:08,000 companies with very complex balances, so I think that’s uh 781 00:31:08,000 --> 00:31:10,767 balances, so I think that’s uh three things to bear in mind uh 782 00:31:10,767 --> 00:31:16,534 three things to bear in mind uh so if I sum up uh better uh for 783 00:31:16,534 --> 00:31:17,667 so if I sum up uh better uh for small and medium-sized 784 00:31:17,667 --> 00:31:18,733 small and medium-sized companies, that’s been 785 00:31:18,733 --> 00:31:20,500 companies, that’s been fascinating liquidation and 786 00:31:20,500 --> 00:31:25,133 fascinating liquidation and relocation of assets so uh uh 787 00:31:25,133 --> 00:31:27,233 relocation of assets so uh uh make sure that the the market 788 00:31:27,233 --> 00:31:28,367 make sure that the the market at the board of the right 789 00:31:28,367 --> 00:31:30,099 at the board of the right incentive to show for the 790 00:31:30,099 --> 00:31:35,167 incentive to show for the balance sheet. As fast as on 791 00:31:35,167 --> 00:31:37,199 balance sheet. As fast as on third, uh improving the quality 792 00:31:37,199 --> 00:31:39,266 third, uh improving the quality of the course wonderful. Thank 793 00:31:39,266 --> 00:31:40,634 of the course wonderful. Thank you very much very important 794 00:31:40,634 --> 00:31:42,767 you very much very important point. Uh I had an associated 795 00:31:42,767 --> 00:31:44,600 point. Uh I had an associated actually the issue of uh the 796 00:31:44,600 --> 00:31:45,834 actually the issue of uh the encouragement of solving a 797 00:31:45,834 --> 00:31:48,233 encouragement of solving a bankruptcy out of court is 798 00:31:48,233 --> 00:31:48,966 bankruptcy out of court is facilitated by the strictly 799 00:31:48,966 --> 00:31:51,067 facilitated by the strictly more formal procedures are this 800 00:31:51,067 --> 00:31:52,367 more formal procedures are this is a very important point. I 801 00:31:52,367 --> 00:31:53,700 is a very important point. I think uh that we should 802 00:31:53,700 --> 00:31:56,299 think uh that we should encourage the advancement of 803 00:31:56,299 --> 00:31:57,200 encourage the advancement of formal procedures in order to 804 00:31:57,200 --> 00:31:58,799 formal procedures in order to advance those out of court 805 00:31:58,799 --> 00:31:59,433 advance those out of court procedures. a very important 806 00:31:59,433 --> 00:32:01,300 procedures. a very important point in the uh uh in my view. 807 00:32:01,300 --> 00:32:03,033 point in the uh uh in my view. Thank you very much and I will 808 00:32:03,033 --> 00:32:04,367 Thank you very much and I will come back actually also to the 809 00:32:04,367 --> 00:32:08,267 come back actually also to the point of the NPLAN L’s. Cup as 810 00:32:08,267 --> 00:32:10,333 point of the NPLAN L’s. Cup as we move into into the autumn 811 00:32:10,333 --> 00:32:12,133 we move into into the autumn and your recommendation about 812 00:32:12,133 --> 00:32:13,299 and your recommendation about the speedy resolution of NPS, 813 00:32:13,299 --> 00:32:14,900 the speedy resolution of NPS, something that we also saw in 814 00:32:14,900 --> 00:32:16,400 something that we also saw in uh uh in the US and ox 815 00:32:16,400 --> 00:32:18,233 uh uh in the US and ox experience now, here is a point 816 00:32:18,233 --> 00:32:19,699 experience now, here is a point the student in Europe and how 817 00:32:19,699 --> 00:32:22,601 the student in Europe and how to advance with NPR in the 818 00:32:22,601 --> 00:32:23,200 to advance with NPR in the second wave, even when that 819 00:32:23,200 --> 00:32:24,533 second wave, even when that arises. But before I come to 820 00:32:24,533 --> 00:32:26,199 arises. But before I come to this point, let me turn to 821 00:32:26,199 --> 00:32:28,533 this point, let me turn to Governor Hof Horseman and and 822 00:32:28,533 --> 00:32:30,234 Governor Hof Horseman and and and perhaps touch on a 823 00:32:30,234 --> 00:32:30,834 and perhaps touch on a different point this time, 824 00:32:30,834 --> 00:32:32,299 different point this time, Governor of the issue of the 825 00:32:32,299 --> 00:32:34,000 Governor of the issue of the alternative to other tools we 826 00:32:34,000 --> 00:32:35,467 alternative to other tools we talked to all the speakers talk 827 00:32:35,467 --> 00:32:38,899 talked to all the speakers talk about. Indebted how to solve a 828 00:32:38,899 --> 00:32:40,667 about. Indebted how to solve a of death and the sovereign on 829 00:32:40,667 --> 00:32:43,200 of death and the sovereign on the private uh site. What are 830 00:32:43,200 --> 00:32:45,100 the private uh site. What are the tools? do we have in Europe 831 00:32:45,100 --> 00:32:48,167 the tools? do we have in Europe and how can we make the best of 832 00:32:48,167 --> 00:32:51,000 and how can we make the best of them? Thank you. I has been a 833 00:32:51,000 --> 00:32:53,133 them? Thank you. I has been a fascinating discussion so far, 834 00:32:53,133 --> 00:32:53,967 fascinating discussion so far, but I’d love to answer to some 835 00:32:53,967 --> 00:32:56,200 but I’d love to answer to some of these issues here. uh what 836 00:32:56,200 --> 00:32:58,834 of these issues here. uh what I’d like to turn to now is to 837 00:32:58,834 --> 00:33:01,267 I’d like to turn to now is to make a plea that we think more 838 00:33:01,267 --> 00:33:04,133 make a plea that we think more about equity uh then uh in 839 00:33:04,133 --> 00:33:06,299 about equity uh then uh in order to contribute to this. 840 00:33:06,299 --> 00:33:09,767 order to contribute to this. The problems and to think about 841 00:33:09,767 --> 00:33:11,699 The problems and to think about it why we have to think about 842 00:33:11,699 --> 00:33:14,167 it why we have to think about it. why I think this requires a 843 00:33:14,167 --> 00:33:17,767 it. why I think this requires a change in mindset as well as 844 00:33:17,767 --> 00:33:19,666 change in mindset as well as approach and uh even if you 845 00:33:19,666 --> 00:33:21,167 approach and uh even if you have to understand why it is 846 00:33:21,167 --> 00:33:23,434 have to understand why it is quite difficult to get more 847 00:33:23,434 --> 00:33:26,000 quite difficult to get more accurate to the market. Uh the 848 00:33:26,000 --> 00:33:27,834 accurate to the market. Uh the first part has mentioned uh we 849 00:33:27,834 --> 00:33:31,266 first part has mentioned uh we have accumulated a lot of debt 850 00:33:31,266 --> 00:33:34,500 have accumulated a lot of debt over 370% of GDP worldwide The 851 00:33:34,500 --> 00:33:37,967 over 370% of GDP worldwide The estimate by the IMF. Make 852 00:33:37,967 --> 00:33:41,833 estimate by the IMF. Make things and stable by now at the 853 00:33:41,833 --> 00:33:42,900 things and stable by now at the specific situation where we had 854 00:33:42,900 --> 00:33:45,900 specific situation where we had the Corona virus a way of banks 855 00:33:45,900 --> 00:33:47,633 the Corona virus a way of banks are still well positioned one 856 00:33:47,633 --> 00:33:50,201 are still well positioned one question ask her but where the 857 00:33:50,201 --> 00:33:52,467 question ask her but where the banks are if this continues 858 00:33:52,467 --> 00:33:54,400 banks are if this continues will run out of money or the 859 00:33:54,400 --> 00:33:56,201 will run out of money or the willingness to and even if they 860 00:33:56,201 --> 00:33:57,800 willingness to and even if they have the money so the equity 861 00:33:57,800 --> 00:34:00,467 have the money so the equity has to pro to the table but 862 00:34:00,467 --> 00:34:02,201 has to pro to the table but this adds to a long term need 863 00:34:02,201 --> 00:34:03,900 this adds to a long term need already why they have to think 864 00:34:03,900 --> 00:34:05,467 already why they have to think about equity, the first one 865 00:34:05,467 --> 00:34:08,467 about equity, the first one has. 866 00:34:40,667 --> 00:34:42,434 Innovation and uh since I 867 00:34:42,434 --> 00:34:43,833 Innovation and uh since I mentioned the part of uh 868 00:34:43,833 --> 00:34:47,733 mentioned the part of uh creative destruction uh when 869 00:34:47,733 --> 00:34:49,434 creative destruction uh when you bonds to be out who makes 870 00:34:49,434 --> 00:34:51,834 you bonds to be out who makes the decision is it the 871 00:34:51,834 --> 00:34:53,667 the decision is it the politicians is it the banker 872 00:34:53,667 --> 00:34:55,667 politicians is it the banker over to how to say the private 873 00:34:55,667 --> 00:34:57,300 over to how to say the private sector to make some of the 874 00:34:57,300 --> 00:34:58,533 sector to make some of the decision who survived not so 875 00:34:58,533 --> 00:35:01,466 decision who survived not so much so deficiency is important 876 00:35:01,466 --> 00:35:02,700 much so deficiency is important and uh last, but not the least 877 00:35:02,700 --> 00:35:05,333 and uh last, but not the least we also have a disputed part, 878 00:35:05,333 --> 00:35:06,533 we also have a disputed part, the obviously a lot of 879 00:35:06,533 --> 00:35:10,867 the obviously a lot of complaints that they are about. 880 00:35:10,867 --> 00:35:13,301 complaints that they are about. Well, if you have so little 881 00:35:13,301 --> 00:35:16,767 Well, if you have so little lightly disputed wealth of 882 00:35:16,767 --> 00:35:18,834 lightly disputed wealth of course, but in order to do this 883 00:35:18,834 --> 00:35:20,867 course, but in order to do this requires something which I 884 00:35:20,867 --> 00:35:23,901 requires something which I would call a move towards a 885 00:35:23,901 --> 00:35:26,167 would call a move towards a democratic capitalism because 886 00:35:26,167 --> 00:35:27,200 democratic capitalism because if you want to have more equity 887 00:35:27,200 --> 00:35:29,299 if you want to have more equity where the capital coming from 888 00:35:29,299 --> 00:35:33,233 where the capital coming from the outside of Europe from if 889 00:35:33,233 --> 00:35:35,200 the outside of Europe from if you rich people or don’t we 890 00:35:35,200 --> 00:35:37,767 you rich people or don’t we need also to have more capital 891 00:35:37,767 --> 00:35:40,767 need also to have more capital is there much. Just distributed 892 00:35:40,767 --> 00:35:43,434 is there much. Just distributed and uh this is of course and 893 00:35:43,434 --> 00:35:44,800 and uh this is of course and the question was is money 894 00:35:44,800 --> 00:35:47,600 the question was is money coming from uh why do people 895 00:35:47,600 --> 00:35:49,733 coming from uh why do people say well, it’s still holds that 896 00:35:49,733 --> 00:35:51,333 say well, it’s still holds that the mature of people save a lot 897 00:35:51,333 --> 00:35:53,733 the mature of people save a lot of money for life cycle events 898 00:35:53,733 --> 00:35:56,667 of money for life cycle events and the big life secrets are 899 00:35:56,667 --> 00:36:00,267 and the big life secrets are having your own uh your own 900 00:36:00,267 --> 00:36:01,167 having your own uh your own housing and having your own 901 00:36:01,167 --> 00:36:04,666 housing and having your own pension. So if uh this is 902 00:36:04,666 --> 00:36:07,067 pension. So if uh this is provided for different means 903 00:36:07,067 --> 00:36:08,566 provided for different means that it’s little incentives to 904 00:36:08,566 --> 00:36:10,300 that it’s little incentives to save and there’s no little 905 00:36:10,300 --> 00:36:12,967 save and there’s no little capital to come in. Market and 906 00:36:12,967 --> 00:36:15,266 capital to come in. Market and you need this also because you 907 00:36:15,266 --> 00:36:16,634 you need this also because you need to have people to skin in 908 00:36:16,634 --> 00:36:18,833 need to have people to skin in the markets because if people 909 00:36:18,833 --> 00:36:20,567 the markets because if people don’t have a feeling, the 910 00:36:20,567 --> 00:36:21,933 don’t have a feeling, the market is up for them, they 911 00:36:21,933 --> 00:36:23,233 market is up for them, they never get involved and they 912 00:36:23,233 --> 00:36:26,699 never get involved and they never get this kind of uh a 913 00:36:26,699 --> 00:36:28,633 never get this kind of uh a possibility of of the investors 914 00:36:28,633 --> 00:36:30,801 possibility of of the investors to be careful what he’s doing 915 00:36:30,801 --> 00:36:33,133 to be careful what he’s doing with his money now. Okay, let’s 916 00:36:33,133 --> 00:36:34,767 with his money now. Okay, let’s solve this. let’s assume we 917 00:36:34,767 --> 00:36:36,266 solve this. let’s assume we have soft and the question is 918 00:36:36,266 --> 00:36:39,034 have soft and the question is how is this supply and demand 919 00:36:39,034 --> 00:36:41,967 how is this supply and demand coming together? How to say 920 00:36:41,967 --> 00:36:44,367 coming together? How to say even if people were to save for 921 00:36:44,367 --> 00:36:47,234 even if people were to save for their own pensions uh and have 922 00:36:47,234 --> 00:36:49,799 their own pensions uh and have an account there. How are the 923 00:36:49,799 --> 00:36:54,000 an account there. How are the uh the money to the commander 924 00:36:54,000 --> 00:36:57,000 uh the money to the commander and there are too many um as 925 00:36:57,000 --> 00:36:58,299 and there are too many um as information in that supply, the 926 00:36:58,299 --> 00:37:00,234 information in that supply, the demand will come together and 927 00:37:00,234 --> 00:37:01,900 demand will come together and to show very clearly worldwide 928 00:37:01,900 --> 00:37:03,567 to show very clearly worldwide for those in Europe. so it 929 00:37:03,567 --> 00:37:04,799 for those in Europe. so it requires institution and 930 00:37:04,799 --> 00:37:07,400 requires institution and requires pension funds acquired 931 00:37:07,400 --> 00:37:08,766 requires pension funds acquired investment companies to 932 00:37:08,766 --> 00:37:10,533 investment companies to sometimes have investment 933 00:37:10,533 --> 00:37:12,967 sometimes have investment companies that raise 100000000 934 00:37:12,967 --> 00:37:14,933 companies that raise 100000000 or so in order to invest in 935 00:37:14,933 --> 00:37:17,434 or so in order to invest in smaller companies. But this is 936 00:37:17,434 --> 00:37:20,201 smaller companies. But this is small fry compared let’s say to 937 00:37:20,201 --> 00:37:23,799 small fry compared let’s say to the 1.3000000000000 money put 938 00:37:23,799 --> 00:37:25,466 the 1.3000000000000 money put on the banking system on the 939 00:37:25,466 --> 00:37:26,867 on the banking system on the table, so you need to have a 940 00:37:26,867 --> 00:37:29,699 table, so you need to have a much larger approach to this 941 00:37:29,699 --> 00:37:32,166 much larger approach to this and last, but not the least uh 942 00:37:32,166 --> 00:37:33,967 and last, but not the least uh also it’s not only the supply 943 00:37:33,967 --> 00:37:36,000 also it’s not only the supply side and the pulling there. You 944 00:37:36,000 --> 00:37:37,333 side and the pulling there. You also need to pedal pulling or 945 00:37:37,333 --> 00:37:38,733 also need to pedal pulling or the amount that it leads to the 946 00:37:38,733 --> 00:37:42,000 the amount that it leads to the issue of the market on the sham 947 00:37:42,000 --> 00:37:44,234 issue of the market on the sham market Uh changes have taken 948 00:37:44,234 --> 00:37:45,967 market Uh changes have taken place, but they’re still 949 00:37:45,967 --> 00:37:49,299 place, but they’re still dominate. At films, small caps 950 00:37:49,299 --> 00:37:52,266 dominate. At films, small caps are still had to say uh 951 00:37:52,266 --> 00:37:53,400 are still had to say uh complicated established even if 952 00:37:53,400 --> 00:37:55,899 complicated established even if they have been changed they are 953 00:37:55,899 --> 00:37:58,267 they have been changed they are now and so the question is how 954 00:37:58,267 --> 00:38:01,234 now and so the question is how can we make sure that the firms 955 00:38:01,234 --> 00:38:02,867 can we make sure that the firms go out and here we have seen a 956 00:38:02,867 --> 00:38:05,467 go out and here we have seen a major change in recent past and 957 00:38:05,467 --> 00:38:06,867 major change in recent past and those recently actually 958 00:38:06,867 --> 00:38:10,234 those recently actually yesterday an interesting 959 00:38:10,234 --> 00:38:12,467 yesterday an interesting comment in the newspaper that 960 00:38:12,467 --> 00:38:14,600 comment in the newspaper that Amazon in Ninety-seven went to 961 00:38:14,600 --> 00:38:15,667 Amazon in Ninety-seven went to the market. it was there to 962 00:38:15,667 --> 00:38:17,100 the market. it was there to raise money for their own 963 00:38:17,100 --> 00:38:21,467 raise money for their own investment. Nowadays and a 964 00:38:21,467 --> 00:38:23,366 investment. Nowadays and a recent coming to the market was 965 00:38:23,366 --> 00:38:26,766 recent coming to the market was not to raise money but to uh 966 00:38:26,766 --> 00:38:28,500 not to raise money but to uh put money back to invest 967 00:38:28,500 --> 00:38:29,267 put money back to invest because before there was 968 00:38:29,267 --> 00:38:31,467 because before there was private equity there and 969 00:38:31,467 --> 00:38:33,233 private equity there and they’re there and now they’re 970 00:38:33,233 --> 00:38:35,467 they’re there and now they’re at the firm is very available 971 00:38:35,467 --> 00:38:37,667 at the firm is very available now the ones to have the money 972 00:38:37,667 --> 00:38:40,299 now the ones to have the money distributed now they go to the 973 00:38:40,299 --> 00:38:42,000 distributed now they go to the markets now to get public in 974 00:38:42,000 --> 00:38:44,167 markets now to get public in order for the new money to put 975 00:38:44,167 --> 00:38:46,467 order for the new money to put money back to the uh to the 976 00:38:46,467 --> 00:38:47,800 money back to the uh to the equity owners. so we have 977 00:38:47,800 --> 00:38:50,400 equity owners. so we have different things. Which made to 978 00:38:50,400 --> 00:38:52,567 different things. Which made to sing out to be make a better 979 00:38:52,567 --> 00:38:55,133 sing out to be make a better distribution of the equity. how 980 00:38:55,133 --> 00:38:56,367 distribution of the equity. how to bring it to the investor. 981 00:38:56,367 --> 00:38:57,833 to bring it to the investor. That’s what it is about and 982 00:38:57,833 --> 00:38:59,367 That’s what it is about and last, but not the least and the 983 00:38:59,367 --> 00:39:02,334 last, but not the least and the many issues okay how to be 984 00:39:02,334 --> 00:39:04,366 many issues okay how to be favor equity compared to death 985 00:39:04,366 --> 00:39:06,333 favor equity compared to death and one of the major reasons 986 00:39:06,333 --> 00:39:08,301 and one of the major reasons why there’s much more that 987 00:39:08,301 --> 00:39:09,767 why there’s much more that faculty has to do with the 988 00:39:09,767 --> 00:39:11,400 faculty has to do with the taxation system Current 989 00:39:11,400 --> 00:39:14,434 taxation system Current taxation system favors deaths 990 00:39:14,434 --> 00:39:15,299 taxation system favors deaths uh because you have to 991 00:39:15,299 --> 00:39:18,234 uh because you have to detection of uh interest rates 992 00:39:18,234 --> 00:39:21,834 detection of uh interest rates are compared to the. On uh 993 00:39:21,834 --> 00:39:24,233 are compared to the. On uh interest uh interest in equity 994 00:39:24,233 --> 00:39:25,967 interest uh interest in equity so we have to think about that 995 00:39:25,967 --> 00:39:28,733 so we have to think about that kind of incentive mechanism. So 996 00:39:28,733 --> 00:39:30,567 kind of incentive mechanism. So yes, we have to go back to her 997 00:39:30,567 --> 00:39:33,867 yes, we have to go back to her and to go back to equity. but 998 00:39:33,867 --> 00:39:36,600 and to go back to equity. but the way there is uh there’s a 999 00:39:36,600 --> 00:39:39,600 the way there is uh there’s a number of conceptual and uh 1000 00:39:39,600 --> 00:39:41,067 number of conceptual and uh operational issues which we 1001 00:39:41,067 --> 00:39:43,266 operational issues which we don’t have a good answer and 1002 00:39:43,266 --> 00:39:45,066 don’t have a good answer and indeed, if I may, I mean I you 1003 00:39:45,066 --> 00:39:46,300 indeed, if I may, I mean I you mentioned it very clearly I 1004 00:39:46,300 --> 00:39:48,567 mentioned it very clearly I think it’s you know the market 1005 00:39:48,567 --> 00:39:49,967 think it’s you know the market is requires skill. Uh this is 1006 00:39:49,967 --> 00:39:52,234 is requires skill. Uh this is this. Need we need scale and 1007 00:39:52,234 --> 00:39:54,800 this. Need we need scale and this is why I think the the 1008 00:39:54,800 --> 00:39:55,800 this is why I think the the ambition of the European Union 1009 00:39:55,800 --> 00:39:58,234 ambition of the European Union is to create a market union to 1010 00:39:58,234 --> 00:40:00,000 is to create a market union to potentially achieve that scale. 1011 00:40:00,000 --> 00:40:01,266 potentially achieve that scale. This is a project that’s been 1012 00:40:01,266 --> 00:40:02,567 This is a project that’s been with us for for some time that 1013 00:40:02,567 --> 00:40:04,234 with us for for some time that has been directives. We’ve made 1014 00:40:04,234 --> 00:40:06,867 has been directives. We’ve made regulatory progress there, but 1015 00:40:06,867 --> 00:40:08,167 regulatory progress there, but we haven’t made regulatory but 1016 00:40:08,167 --> 00:40:09,733 we haven’t made regulatory but beyond the regulatory progress 1017 00:40:09,733 --> 00:40:11,133 beyond the regulatory progress we haven’t made progress in 1018 00:40:11,133 --> 00:40:13,234 we haven’t made progress in creating the markets themselves 1019 00:40:13,234 --> 00:40:14,867 creating the markets themselves in your view. What is the one 1020 00:40:14,867 --> 00:40:17,301 in your view. What is the one thing that we need to do to 1021 00:40:17,301 --> 00:40:18,334 thing that we need to do to advance this agenda? I know 1022 00:40:18,334 --> 00:40:19,766 advance this agenda? I know this is not an easy question, 1023 00:40:19,766 --> 00:40:20,434 this is not an easy question, giving will be busy with this, 1024 00:40:20,434 --> 00:40:22,301 giving will be busy with this, but you know what would breathe 1025 00:40:22,301 --> 00:40:23,333 but you know what would breathe life into this new life into 1026 00:40:23,333 --> 00:40:27,000 life into this new life into this project? I think one has 1027 00:40:27,000 --> 00:40:29,600 this project? I think one has to go beyond thinking what can 1028 00:40:29,600 --> 00:40:31,900 to go beyond thinking what can do it by the order of the 1029 00:40:31,900 --> 00:40:33,333 do it by the order of the simply turn integration you 1030 00:40:33,333 --> 00:40:35,967 simply turn integration you have to lift the capital market 1031 00:40:35,967 --> 00:40:37,467 have to lift the capital market Uh capital market is like 1032 00:40:37,467 --> 00:40:38,967 Uh capital market is like British weather. Everybody is 1033 00:40:38,967 --> 00:40:41,466 British weather. Everybody is talking about it, but nobody’s 1034 00:40:41,466 --> 00:40:43,067 talking about it, but nobody’s doing anything against it for 1035 00:40:43,067 --> 00:40:45,267 doing anything against it for it. so we have to really think 1036 00:40:45,267 --> 00:40:47,067 it. so we have to really think about capital market needs to 1037 00:40:47,067 --> 00:40:49,399 about capital market needs to be there where an individual 1038 00:40:49,399 --> 00:40:51,933 be there where an individual has if you I want to be there 1039 00:40:51,933 --> 00:40:54,801 has if you I want to be there in the market I invested 1040 00:40:54,801 --> 00:40:57,300 in the market I invested indirectly I get interested in 1041 00:40:57,300 --> 00:40:58,667 indirectly I get interested in it, so I have to have a mindset 1042 00:40:58,667 --> 00:40:59,533 it, so I have to have a mindset so you have to. that’s the 1043 00:40:59,533 --> 00:41:03,633 so you have to. that’s the reason II. Notion of Democratic 1044 00:41:03,633 --> 00:41:06,234 reason II. Notion of Democratic capitalism We have to think if 1045 00:41:06,234 --> 00:41:07,634 capitalism We have to think if we want to have a capital 1046 00:41:07,634 --> 00:41:09,266 we want to have a capital market, we have to have many 1047 00:41:09,266 --> 00:41:11,067 market, we have to have many more capitalists. otherwise we 1048 00:41:11,067 --> 00:41:12,699 more capitalists. otherwise we will never have a capital 1049 00:41:12,699 --> 00:41:14,399 will never have a capital market so it cultural 1050 00:41:14,399 --> 00:41:14,934 market so it cultural revolution cultural. It’s 1051 00:41:14,934 --> 00:41:16,767 revolution cultural. It’s multicultural evolution is the 1052 00:41:16,767 --> 00:41:17,800 multicultural evolution is the culture Evolution will take a 1053 00:41:17,800 --> 00:41:19,067 culture Evolution will take a long time to exactly it’s not 1054 00:41:19,067 --> 00:41:20,867 long time to exactly it’s not from the day tomorrow. Indeed, 1055 00:41:20,867 --> 00:41:22,600 from the day tomorrow. Indeed, thank you very much um let me 1056 00:41:22,600 --> 00:41:25,299 thank you very much um let me passing uh our audience into 1057 00:41:25,299 --> 00:41:26,700 passing uh our audience into the conversation. I have two 1058 00:41:26,700 --> 00:41:29,000 the conversation. I have two senior fellows at Vigo uh that 1059 00:41:29,000 --> 00:41:30,234 senior fellows at Vigo uh that they’re asking pretty much the 1060 00:41:30,234 --> 00:41:31,767 they’re asking pretty much the same question uh so this is 1061 00:41:31,767 --> 00:41:33,434 same question uh so this is Alisa Garcia Herrera as well as 1062 00:41:33,434 --> 00:41:35,067 Alisa Garcia Herrera as well as Francesco Padilla, I ask the 1063 00:41:35,067 --> 00:41:38,133 Francesco Padilla, I ask the question. How European 1064 00:41:38,133 --> 00:41:39,800 question. How European institutions can help countries 1065 00:41:39,800 --> 00:41:41,267 institutions can help countries uh accelerate growth, 1066 00:41:41,267 --> 00:41:43,234 uh accelerate growth, especially countries that are 1067 00:41:43,234 --> 00:41:44,000 especially countries that are lacking behind in this respect 1068 00:41:44,000 --> 00:41:46,667 lacking behind in this respect like Italy and can I start with 1069 00:41:46,667 --> 00:41:47,967 like Italy and can I start with you Mister star on this issue 1070 00:41:47,967 --> 00:41:49,767 you Mister star on this issue because you come from the uh uh 1071 00:41:49,767 --> 00:41:50,800 because you come from the uh uh the European one of the 1072 00:41:50,800 --> 00:41:52,767 the European one of the European institutions that is 1073 00:41:52,767 --> 00:41:54,233 European institutions that is thinking about the issues. How 1074 00:41:54,233 --> 00:41:56,067 thinking about the issues. How can this institution really 1075 00:41:56,067 --> 00:41:57,067 can this institution really help accelerate growth and stay 1076 00:41:57,067 --> 00:41:59,033 help accelerate growth and stay faithful to the architecture of 1077 00:41:59,033 --> 00:42:03,766 faithful to the architecture of the European Union? Yes, that’s 1078 00:42:03,766 --> 00:42:06,167 the European Union? Yes, that’s a very important part and a big 1079 00:42:06,167 --> 00:42:08,733 a very important part and a big question very important 1080 00:42:08,733 --> 00:42:10,633 question very important question. So I mean I talked 1081 00:42:10,633 --> 00:42:13,800 question. So I mean I talked about European package and it 1082 00:42:13,800 --> 00:42:15,333 about European package and it has it is clear that in the 1083 00:42:15,333 --> 00:42:18,267 has it is clear that in the crisis response, is and many 1084 00:42:18,267 --> 00:42:20,934 crisis response, is and many words is meant and we have 1085 00:42:20,934 --> 00:42:23,300 words is meant and we have created an instrument as an 1086 00:42:23,300 --> 00:42:23,934 created an instrument as an immediate response to the 1087 00:42:23,934 --> 00:42:25,967 immediate response to the crisis in order to support 1088 00:42:25,967 --> 00:42:27,933 crisis in order to support health measures and the other 1089 00:42:27,933 --> 00:42:29,066 health measures and the other ins institutions have done that 1090 00:42:29,066 --> 00:42:30,201 ins institutions have done that as well, I think forward 1091 00:42:30,201 --> 00:42:31,867 as well, I think forward looking the key role is with 1092 00:42:31,867 --> 00:42:33,333 looking the key role is with the European Commission theory 1093 00:42:33,333 --> 00:42:35,967 the European Commission theory and with. Structure of the 1094 00:42:35,967 --> 00:42:38,167 and with. Structure of the Recovery Fund and as part of 1095 00:42:38,167 --> 00:42:40,667 Recovery Fund and as part of the set up, there’s also the 1096 00:42:40,667 --> 00:42:43,800 the set up, there’s also the idea that money will be 1097 00:42:43,800 --> 00:42:47,234 idea that money will be provided upon the delivery on a 1098 00:42:47,234 --> 00:42:48,767 provided upon the delivery on a recovery plan that government 1099 00:42:48,767 --> 00:42:50,300 recovery plan that government have to go up and that the 1100 00:42:50,300 --> 00:42:51,534 have to go up and that the recovery plan should 1101 00:42:51,534 --> 00:42:53,867 recovery plan should essentially be the core bone of 1102 00:42:53,867 --> 00:42:55,767 essentially be the core bone of the government thinking in 1103 00:42:55,767 --> 00:42:59,400 the government thinking in stimulating growth. So what the 1104 00:42:59,400 --> 00:43:01,133 stimulating growth. So what the system of what this approach 1105 00:43:01,133 --> 00:43:03,500 system of what this approach entails is that we have in my 1106 00:43:03,500 --> 00:43:05,299 entails is that we have in my view fundamental change in 1107 00:43:05,299 --> 00:43:06,267 view fundamental change in European governance in the 1108 00:43:06,267 --> 00:43:07,967 European governance in the sense that compared to the 1109 00:43:07,967 --> 00:43:11,334 sense that compared to the past. We have now where you had 1110 00:43:11,334 --> 00:43:15,234 past. We have now where you had policy coordination as a 1111 00:43:15,234 --> 00:43:16,899 policy coordination as a civilian system. We have now 1112 00:43:16,899 --> 00:43:19,200 civilian system. We have now added to this a huge positive 1113 00:43:19,200 --> 00:43:20,934 added to this a huge positive incentive that governments can 1114 00:43:20,934 --> 00:43:24,400 incentive that governments can count on if the bar and grows 1115 00:43:24,400 --> 00:43:25,066 count on if the bar and grows measures, and that is something 1116 00:43:25,066 --> 00:43:26,334 measures, and that is something that will have to be 1117 00:43:26,334 --> 00:43:27,600 that will have to be operationalize. but that would 1118 00:43:27,600 --> 00:43:30,333 operationalize. but that would I think would be a centerpiece 1119 00:43:30,333 --> 00:43:32,133 I think would be a centerpiece of more than governments 1120 00:43:32,133 --> 00:43:36,234 of more than governments towards more growth policies. 1121 00:43:36,234 --> 00:43:36,934 towards more growth policies. Wonderful thank you very much 1122 00:43:36,934 --> 00:43:39,500 Wonderful thank you very much um may go back to the question 1123 00:43:39,500 --> 00:43:42,267 um may go back to the question of the NPP. Uh I think one of 1124 00:43:42,267 --> 00:43:43,433 of the NPP. Uh I think one of them of infestations of uh of 1125 00:43:43,433 --> 00:43:46,300 them of infestations of uh of of death. Problematic is that 1126 00:43:46,300 --> 00:43:47,434 of death. Problematic is that the non-performing loans the 1127 00:43:47,434 --> 00:43:50,000 the non-performing loans the bad that’s will increase, and 1128 00:43:50,000 --> 00:43:51,333 bad that’s will increase, and you know what are some of the 1129 00:43:51,333 --> 00:43:52,699 you know what are some of the lessons that we’ve learned from 1130 00:43:52,699 --> 00:43:54,533 lessons that we’ve learned from the previous crisis and what 1131 00:43:54,533 --> 00:43:56,967 the previous crisis and what what can we do differently this 1132 00:43:56,967 --> 00:43:59,400 what can we do differently this time to try and and and achieve 1133 00:43:59,400 --> 00:44:00,699 time to try and and and achieve exactly what mister also said 1134 00:44:00,699 --> 00:44:03,333 exactly what mister also said so a quicker resolution of bad 1135 00:44:03,333 --> 00:44:05,833 so a quicker resolution of bad debts uh Ethan when they 1136 00:44:05,833 --> 00:44:06,800 debts uh Ethan when they arrived and may may attend to 1137 00:44:06,800 --> 00:44:08,234 arrived and may may attend to you may check on this issue 1138 00:44:08,234 --> 00:44:09,867 you may check on this issue just to hear from your 1139 00:44:09,867 --> 00:44:11,299 just to hear from your experience from the BRT. What 1140 00:44:11,299 --> 00:44:12,667 experience from the BRT. What is the one thing that we need 1141 00:44:12,667 --> 00:44:13,967 is the one thing that we need to do differently? quicker this 1142 00:44:13,967 --> 00:44:17,234 to do differently? quicker this time around. I think there’s no 1143 00:44:17,234 --> 00:44:19,801 time around. I think there’s no silver Bullet II very much 1144 00:44:19,801 --> 00:44:23,566 silver Bullet II very much agree with what was said before 1145 00:44:23,566 --> 00:44:26,400 agree with what was said before that, you know we need a better 1146 00:44:26,400 --> 00:44:28,801 that, you know we need a better procedures for the conditions 1147 00:44:28,801 --> 00:44:30,234 procedures for the conditions something I came to chapter 1148 00:44:30,234 --> 00:44:33,266 something I came to chapter eleven, We need a faster more 1149 00:44:33,266 --> 00:44:35,366 eleven, We need a faster more efficient courts and you know 1150 00:44:35,366 --> 00:44:37,400 efficient courts and you know if you look at the global 1151 00:44:37,400 --> 00:44:39,467 if you look at the global rankings of ease of doing 1152 00:44:39,467 --> 00:44:40,799 rankings of ease of doing business, which also includes 1153 00:44:40,799 --> 00:44:42,566 business, which also includes efficiency. of course, it’s you 1154 00:44:42,566 --> 00:44:45,200 efficiency. of course, it’s you know many southern European 1155 00:44:45,200 --> 00:44:46,333 know many southern European countries not just eastern 1156 00:44:46,333 --> 00:44:47,833 countries not just eastern European countries are not 1157 00:44:47,833 --> 00:44:48,900 European countries are not looking very good. Those 1158 00:44:48,900 --> 00:44:50,367 looking very good. Those rankings they are actually 1159 00:44:50,367 --> 00:44:56,233 rankings they are actually legging behind that respect um 1160 00:44:56,233 --> 00:44:57,934 legging behind that respect um also you know the another 1161 00:44:57,934 --> 00:45:00,767 also you know the another reason why the US that better 1162 00:45:00,767 --> 00:45:01,966 reason why the US that better in this area than Europe is 1163 00:45:01,966 --> 00:45:04,566 in this area than Europe is because in Europe, we have a 1164 00:45:04,566 --> 00:45:07,267 because in Europe, we have a stigma attached to bankruptcy. 1165 00:45:07,267 --> 00:45:08,966 stigma attached to bankruptcy. Um I think it’s hard for people 1166 00:45:08,966 --> 00:45:11,267 Um I think it’s hard for people um who have who have been 1167 00:45:11,267 --> 00:45:14,166 um who have who have been unsuccessful in business to 1168 00:45:14,166 --> 00:45:16,233 unsuccessful in business to start a again why the mindset 1169 00:45:16,233 --> 00:45:18,299 start a again why the mindset is very different uh in the US. 1170 00:45:18,299 --> 00:45:20,767 is very different uh in the US. so here we need a cultural 1171 00:45:20,767 --> 00:45:22,567 so here we need a cultural revolution as well, but let me 1172 00:45:22,567 --> 00:45:25,634 revolution as well, but let me bring. Another issue to the 1173 00:45:25,634 --> 00:45:29,034 bring. Another issue to the discussion um S firms will be 1174 00:45:29,034 --> 00:45:32,201 discussion um S firms will be um weighed down by burden of 1175 00:45:32,201 --> 00:45:35,133 um weighed down by burden of debt. are we going to see 1176 00:45:35,133 --> 00:45:38,767 debt. are we going to see nationalization um what is 1177 00:45:38,767 --> 00:45:39,734 nationalization um what is quite interesting? What we’ve 1178 00:45:39,734 --> 00:45:41,967 quite interesting? What we’ve observed over the last two 1179 00:45:41,967 --> 00:45:44,866 observed over the last two decades is that the public 1180 00:45:44,866 --> 00:45:47,334 decades is that the public attitude towards state 1181 00:45:47,334 --> 00:45:49,700 attitude towards state ownership has become much more 1182 00:45:49,700 --> 00:45:51,399 ownership has become much more favorable, and it’s interesting 1183 00:45:51,399 --> 00:45:53,966 favorable, and it’s interesting that if you look at you see 1184 00:45:53,966 --> 00:45:57,266 that if you look at you see this development, both in. 1185 00:45:57,266 --> 00:46:01,266 this development, both in. Countries as well as in post 1186 00:46:01,266 --> 00:46:03,334 Countries as well as in post communist countries and they’re 1187 00:46:03,334 --> 00:46:04,433 communist countries and they’re interestingly there isn’t a 1188 00:46:04,433 --> 00:46:07,934 interestingly there isn’t a link between increasing support 1189 00:46:07,934 --> 00:46:09,234 link between increasing support for public ownership and H 1190 00:46:09,234 --> 00:46:11,833 for public ownership and H profile. It seems to be sort of 1191 00:46:11,833 --> 00:46:13,466 profile. It seems to be sort of uniform increase. So that’s 1192 00:46:13,466 --> 00:46:15,701 uniform increase. So that’s this mean that we are going to 1193 00:46:15,701 --> 00:46:17,467 this mean that we are going to see a wave of national 1194 00:46:17,467 --> 00:46:21,267 see a wave of national organizations and if so I would 1195 00:46:21,267 --> 00:46:23,799 organizations and if so I would very much worry about 1196 00:46:23,799 --> 00:46:25,667 very much worry about nationalization taking place in 1197 00:46:25,667 --> 00:46:28,566 nationalization taking place in countries where the quality of 1198 00:46:28,566 --> 00:46:31,767 countries where the quality of governance is lower. Because in 1199 00:46:31,767 --> 00:46:33,934 governance is lower. Because in those countries national 1200 00:46:33,934 --> 00:46:35,166 those countries national organizations will create and 1201 00:46:35,166 --> 00:46:39,567 organizations will create and trench interest um state on uh 1202 00:46:39,567 --> 00:46:41,700 trench interest um state on uh entities will create an 1203 00:46:41,700 --> 00:46:43,767 entities will create an opportunity to give jobs to 1204 00:46:43,767 --> 00:46:46,200 opportunity to give jobs to connect individuals There will 1205 00:46:46,200 --> 00:46:47,767 connect individuals There will be networks of suppliers that 1206 00:46:47,767 --> 00:46:50,366 be networks of suppliers that will be very much fighting 1207 00:46:50,366 --> 00:46:53,833 will be very much fighting against um reversing those and 1208 00:46:53,833 --> 00:46:55,434 against um reversing those and I think um you know this is one 1209 00:46:55,434 --> 00:46:57,967 I think um you know this is one of the lessons from the 1210 00:46:57,967 --> 00:47:00,633 of the lessons from the countries where EBRD operators. 1211 00:47:00,633 --> 00:47:03,666 countries where EBRD operators. How do you ensure that 1212 00:47:03,666 --> 00:47:04,767 How do you ensure that nationalized companies in 1213 00:47:04,767 --> 00:47:07,433 nationalized companies in places? uh with? Levels of 1214 00:47:07,433 --> 00:47:11,201 places? uh with? Levels of governance are run efficiently 1215 00:47:11,201 --> 00:47:15,333 governance are run efficiently and not used for political 1216 00:47:15,333 --> 00:47:16,866 and not used for political purposes. Thank you. that’s uh 1217 00:47:16,866 --> 00:47:18,000 purposes. Thank you. that’s uh that’s a very important point 1218 00:47:18,000 --> 00:47:19,667 that’s a very important point and actually the the role of 1219 00:47:19,667 --> 00:47:21,834 and actually the the role of the states uh will change in 1220 00:47:21,834 --> 00:47:23,201 the states uh will change in the future as a result of the 1221 00:47:23,201 --> 00:47:24,799 the future as a result of the huge interventions that uh that 1222 00:47:24,799 --> 00:47:25,966 huge interventions that uh that we’ve seen and if we’ve seen 1223 00:47:25,966 --> 00:47:27,933 we’ve seen and if we’ve seen even a greater way of 1224 00:47:27,933 --> 00:47:28,934 even a greater way of nationalization this out to 1225 00:47:28,934 --> 00:47:30,300 nationalization this out to this, we will actually have a 1226 00:47:30,300 --> 00:47:31,500 this, we will actually have a whole session on this tomorrow 1227 00:47:31,500 --> 00:47:33,700 whole session on this tomorrow on the role of the state in the 1228 00:47:33,700 --> 00:47:34,599 on the role of the state in the view of the nineteen, but thank 1229 00:47:34,599 --> 00:47:36,000 view of the nineteen, but thank you for raising it because this 1230 00:47:36,000 --> 00:47:37,433 you for raising it because this is a very uh very important 1231 00:47:37,433 --> 00:47:41,167 is a very uh very important point um May II. Ask a question 1232 00:47:41,167 --> 00:47:43,667 point um May II. Ask a question to the governor. It’s coming 1233 00:47:43,667 --> 00:47:44,700 to the governor. It’s coming from Alex and also a fellow 1234 00:47:44,700 --> 00:47:47,167 from Alex and also a fellow here at brutal who’s who’s 1235 00:47:47,167 --> 00:47:47,967 here at brutal who’s who’s asking governor should the 1236 00:47:47,967 --> 00:47:49,234 asking governor should the flexibility in capital 1237 00:47:49,234 --> 00:47:51,234 flexibility in capital requirements on the base of 1238 00:47:51,234 --> 00:47:52,834 requirements on the base of three beaut utilize to 1239 00:47:52,834 --> 00:47:55,367 three beaut utilize to encourage to banks into debt, 1240 00:47:55,367 --> 00:47:56,000 encourage to banks into debt, equities swaps or to set up 1241 00:47:56,000 --> 00:47:57,533 equities swaps or to set up common equity funds? Would it 1242 00:47:57,533 --> 00:47:59,967 common equity funds? Would it be a way of thinking about 1243 00:47:59,967 --> 00:48:03,433 be a way of thinking about equity? Uh I haven’t thought 1244 00:48:03,433 --> 00:48:05,733 equity? Uh I haven’t thought about it but uh first reaction 1245 00:48:05,733 --> 00:48:08,400 about it but uh first reaction is the reaction is yes sir 1246 00:48:08,400 --> 00:48:10,701 is the reaction is yes sir because given the difficulties 1247 00:48:10,701 --> 00:48:13,767 because given the difficulties to bring to the table uh every 1248 00:48:13,767 --> 00:48:15,167 to bring to the table uh every approach, which does it 1249 00:48:15,167 --> 00:48:17,167 approach, which does it quickly, I think uh shoots to 1250 00:48:17,167 --> 00:48:19,633 quickly, I think uh shoots to be supported and uh at that 1251 00:48:19,633 --> 00:48:21,834 be supported and uh at that equity is about putting one way 1252 00:48:21,834 --> 00:48:23,400 equity is about putting one way in which this can be done 1253 00:48:23,400 --> 00:48:26,767 in which this can be done because it’s requires uh 1254 00:48:26,767 --> 00:48:28,334 because it’s requires uh information which is 1255 00:48:28,334 --> 00:48:30,000 information which is essentially publicly available. 1256 00:48:30,000 --> 00:48:31,800 essentially publicly available. The question still is there uh 1257 00:48:31,800 --> 00:48:35,400 The question still is there uh to say? They’re coming from 1258 00:48:35,400 --> 00:48:36,900 to say? They’re coming from because if a bank to get rid of 1259 00:48:36,900 --> 00:48:38,233 because if a bank to get rid of it, you know the question is 1260 00:48:38,233 --> 00:48:40,967 it, you know the question is the coming from where who’s 1261 00:48:40,967 --> 00:48:44,201 the coming from where who’s who’s invest in that and this 1262 00:48:44,201 --> 00:48:46,000 who’s invest in that and this goes back to the question who 1263 00:48:46,000 --> 00:48:48,234 goes back to the question who wants to invest in equity 1264 00:48:48,234 --> 00:48:50,167 wants to invest in equity compared to compared to that, 1265 00:48:50,167 --> 00:48:52,800 compared to compared to that, And this is sad to say this uh 1266 00:48:52,800 --> 00:48:54,400 And this is sad to say this uh question, which will occupy for 1267 00:48:54,400 --> 00:48:56,866 question, which will occupy for the next decades as you um, I’m 1268 00:48:56,866 --> 00:48:58,233 the next decades as you um, I’m very tempted to ask the 1269 00:48:58,233 --> 00:49:00,466 very tempted to ask the question again on the on the um 1270 00:49:00,466 --> 00:49:03,433 question again on the on the um on NPR if I.. Address both of 1271 00:49:03,433 --> 00:49:06,566 on NPR if I.. Address both of mister and Missus Rome of a 1272 00:49:06,566 --> 00:49:08,799 mister and Missus Rome of a European bank. uh do you think 1273 00:49:08,799 --> 00:49:10,200 European bank. uh do you think that would be preemptively and 1274 00:49:10,200 --> 00:49:11,533 that would be preemptively and also to answer the question 1275 00:49:11,533 --> 00:49:13,400 also to answer the question What European institutions can 1276 00:49:13,400 --> 00:49:15,933 What European institutions can do to help with promote growth 1277 00:49:15,933 --> 00:49:17,866 do to help with promote growth and particularly areas of 1278 00:49:17,866 --> 00:49:18,366 and particularly areas of activity. the quicker 1279 00:49:18,366 --> 00:49:19,900 activity. the quicker resolution of NP. LS is there 1280 00:49:19,900 --> 00:49:22,000 resolution of NP. LS is there space for thinking about 1281 00:49:22,000 --> 00:49:23,699 space for thinking about European uh bad bank or is this 1282 00:49:23,699 --> 00:49:29,334 European uh bad bank or is this has this ship sailed? We stop 1283 00:49:29,334 --> 00:49:33,034 has this ship sailed? We stop perhaps you can start with you. 1284 00:49:33,201 --> 00:49:35,067 In the first that we have to 1285 00:49:35,067 --> 00:49:36,167 In the first that we have to think about solutions for 1286 00:49:36,167 --> 00:49:37,834 think about solutions for non-performing loans and we 1287 00:49:37,834 --> 00:49:41,500 non-performing loans and we have had an NPL action plan 1288 00:49:41,500 --> 00:49:42,834 have had an NPL action plan after the last crisis and I 1289 00:49:42,834 --> 00:49:44,167 after the last crisis and I think it has been very 1290 00:49:44,167 --> 00:49:45,400 think it has been very successful and helpful in 1291 00:49:45,400 --> 00:49:46,000 successful and helpful in bringing down the level of 1292 00:49:46,000 --> 00:49:48,467 bringing down the level of performing loans. So there’s a 1293 00:49:48,467 --> 00:49:51,867 performing loans. So there’s a lot of steps that can be taken 1294 00:49:51,867 --> 00:49:54,566 lot of steps that can be taken on the side of of the industry 1295 00:49:54,566 --> 00:49:57,799 on the side of of the industry and um also from the regulatory 1296 00:49:57,799 --> 00:49:59,699 and um also from the regulatory side what we need additional 1297 00:49:59,699 --> 00:50:01,233 side what we need additional steps and should one thing 1298 00:50:01,233 --> 00:50:03,767 steps and should one thing about bad banks. there are 1299 00:50:03,767 --> 00:50:05,334 about bad banks. there are different models of banks that 1300 00:50:05,334 --> 00:50:10,200 different models of banks that one or asset management. 1301 00:50:37,733 --> 00:50:42,734 Most of the national level um 1302 00:50:42,734 --> 00:50:44,467 Most of the national level um Andrea is at the time proposed 1303 00:50:44,467 --> 00:50:46,766 Andrea is at the time proposed model for as a management 1304 00:50:46,766 --> 00:50:48,234 model for as a management company that can help in those 1305 00:50:48,234 --> 00:50:50,800 company that can help in those situations and that the 1306 00:50:50,800 --> 00:50:52,233 situations and that the blueprint on which governments 1307 00:50:52,233 --> 00:50:53,900 blueprint on which governments can build when they set up 1308 00:50:53,900 --> 00:50:57,400 can build when they set up those companies and those bad 1309 00:50:57,400 --> 00:50:59,333 those companies and those bad banks. So there’s already some 1310 00:50:59,333 --> 00:51:00,666 banks. So there’s already some work intellectual work done in 1311 00:51:00,666 --> 00:51:03,034 work intellectual work done in in order to go that route and I 1312 00:51:03,034 --> 00:51:05,700 in order to go that route and I think we also need to be 1313 00:51:05,700 --> 00:51:07,166 think we also need to be conscious that this cannot be 1314 00:51:07,166 --> 00:51:09,233 conscious that this cannot be the only solution, but there 1315 00:51:09,233 --> 00:51:10,733 the only solution, but there are other steps need to be 1316 00:51:10,733 --> 00:51:11,734 are other steps need to be taken and here, for example, 1317 00:51:11,734 --> 00:51:13,066 taken and here, for example, it’s also very important to 1318 00:51:13,066 --> 00:51:17,201 it’s also very important to mention. Part of the Union 1319 00:51:17,201 --> 00:51:19,234 mention. Part of the Union project and that was discussed 1320 00:51:19,234 --> 00:51:21,867 project and that was discussed by a high-level forum uh that 1321 00:51:21,867 --> 00:51:23,666 by a high-level forum uh that was created under 2 months 1322 00:51:23,666 --> 00:51:25,800 was created under 2 months under the leadership of these 1323 00:51:25,800 --> 00:51:27,233 under the leadership of these are the emphasize also very 1324 00:51:27,233 --> 00:51:29,967 are the emphasize also very much the necessity to revive 1325 00:51:29,967 --> 00:51:33,333 much the necessity to revive strength and utilization so it 1326 00:51:33,333 --> 00:51:35,300 strength and utilization so it would be a bad bank by itself 1327 00:51:35,300 --> 00:51:36,233 would be a bad bank by itself wouldn’t tell if you don’t 1328 00:51:36,233 --> 00:51:37,700 wouldn’t tell if you don’t create the market conditions 1329 00:51:37,700 --> 00:51:39,234 create the market conditions and that is what needs to be 1330 00:51:39,234 --> 00:51:41,800 and that is what needs to be done and so that there would be 1331 00:51:41,800 --> 00:51:43,200 done and so that there would be a lot of other measures 1332 00:51:43,200 --> 00:51:45,967 a lot of other measures necessary to be successful. 1333 00:51:45,967 --> 00:51:48,467 necessary to be successful. Yeah I. Make your view on this, 1334 00:51:48,467 --> 00:51:51,200 Yeah I. Make your view on this, Yeah II think that before 1335 00:51:51,200 --> 00:51:52,599 Yeah II think that before starting thinking about setting 1336 00:51:52,599 --> 00:51:54,667 starting thinking about setting a bad one, I think we have to 1337 00:51:54,667 --> 00:51:57,300 a bad one, I think we have to ask ourselves who uh well the 1338 00:51:57,300 --> 00:51:58,633 ask ourselves who uh well the bankers of the tables so just 1339 00:51:58,633 --> 00:52:00,334 bankers of the tables so just to give you an idea in some 1340 00:52:00,334 --> 00:52:02,201 to give you an idea in some bouncing funds, the bankers are 1341 00:52:02,201 --> 00:52:03,799 bouncing funds, the bankers are visible of the San Juan who 1342 00:52:03,799 --> 00:52:05,633 visible of the San Juan who actually around the loans so 1343 00:52:05,633 --> 00:52:06,767 actually around the loans so they have the relationship the 1344 00:52:06,767 --> 00:52:08,400 they have the relationship the previous relationship with the 1345 00:52:08,400 --> 00:52:11,000 previous relationship with the debt off in some other banks, 1346 00:52:11,000 --> 00:52:12,500 debt off in some other banks, It’s actually the team and they 1347 00:52:12,500 --> 00:52:14,600 It’s actually the team and they have their own balance sheet 1348 00:52:14,600 --> 00:52:16,433 have their own balance sheet and you can understand that if 1349 00:52:16,433 --> 00:52:18,400 and you can understand that if they have been a transparent of 1350 00:52:18,400 --> 00:52:20,333 they have been a transparent of the loan inside December from 1351 00:52:20,333 --> 00:52:23,134 the loan inside December from to balance sheet of the. Was uh 1352 00:52:23,134 --> 00:52:25,267 to balance sheet of the. Was uh in charge of arranging the loan 1353 00:52:25,267 --> 00:52:28,200 in charge of arranging the loan to the team with rested in the 1354 00:52:28,200 --> 00:52:29,199 to the team with rested in the I mean, this is really the 1355 00:52:29,199 --> 00:52:30,000 I mean, this is really the first step because the people 1356 00:52:30,000 --> 00:52:31,266 first step because the people at the table are not gonna 1357 00:52:31,266 --> 00:52:33,434 at the table are not gonna they’re not gonna have the same 1358 00:52:33,434 --> 00:52:34,933 they’re not gonna have the same incentives the reasoning team 1359 00:52:34,933 --> 00:52:37,367 incentives the reasoning team at the table was receiving this 1360 00:52:37,367 --> 00:52:39,000 at the table was receiving this balance sheet the the the the 1361 00:52:39,000 --> 00:52:41,133 balance sheet the the the the the the the loan they’re really 1362 00:52:41,133 --> 00:52:43,300 the the the loan they’re really been in the bank the 1363 00:52:43,300 --> 00:52:45,267 been in the bank the recognition that that’s a 1364 00:52:45,267 --> 00:52:46,699 recognition that that’s a non-profit loan on the on the 1365 00:52:46,699 --> 00:52:48,933 non-profit loan on the on the on the with a better incentive 1366 00:52:48,933 --> 00:52:50,534 on the with a better incentive actually to treating the road 1367 00:52:50,534 --> 00:52:53,767 actually to treating the road if the. 1368 00:53:37,100 --> 00:53:38,000 I’m a governor, You will have 1369 00:53:38,000 --> 00:53:41,367 I’m a governor, You will have also use on this issue I 1370 00:53:41,367 --> 00:53:42,834 also use on this issue I sympathize very much what has 1371 00:53:42,834 --> 00:53:46,967 sympathize very much what has been said uh I think uh taking 1372 00:53:46,967 --> 00:53:49,700 been said uh I think uh taking the loan outside the old 1373 00:53:49,700 --> 00:53:50,800 the loan outside the old environment is very helpful 1374 00:53:50,800 --> 00:53:53,167 environment is very helpful because it changes incentives 1375 00:53:53,167 --> 00:53:55,800 because it changes incentives and what we have seen uh in uh 1376 00:53:55,800 --> 00:54:00,266 and what we have seen uh in uh San in Europe uh boss at uh uh 1377 00:54:00,266 --> 00:54:03,067 San in Europe uh boss at uh uh having a bad loan companies are 1378 00:54:03,067 --> 00:54:05,067 having a bad loan companies are taking care of it has in most 1379 00:54:05,067 --> 00:54:09,867 taking care of it has in most cases. Highly successful in 1380 00:54:09,867 --> 00:54:13,234 cases. Highly successful in gaining a lot of money back in 1381 00:54:13,234 --> 00:54:15,134 gaining a lot of money back in order to serve the former 1382 00:54:15,134 --> 00:54:17,767 order to serve the former owner, but also to have a 1383 00:54:17,767 --> 00:54:20,466 owner, but also to have a mechanism to put uh if you want 1384 00:54:20,466 --> 00:54:23,433 mechanism to put uh if you want to send you to the market 1385 00:54:23,433 --> 00:54:25,267 to send you to the market because the money came in this 1386 00:54:25,267 --> 00:54:26,967 because the money came in this new investors there so I would 1387 00:54:26,967 --> 00:54:29,467 new investors there so I would very much favor that uh to 1388 00:54:29,467 --> 00:54:31,000 very much favor that uh to think about it how to bring it 1389 00:54:31,000 --> 00:54:33,401 think about it how to bring it out to make it happen and also 1390 00:54:33,401 --> 00:54:34,667 out to make it happen and also what has been said before I 1391 00:54:34,667 --> 00:54:38,233 what has been said before I think Kevin. Look at the uh the 1392 00:54:38,233 --> 00:54:40,933 think Kevin. Look at the uh the current regulation to make 1393 00:54:40,933 --> 00:54:43,433 current regulation to make really sure that banks have an 1394 00:54:43,433 --> 00:54:45,034 really sure that banks have an incentive to be used to 1395 00:54:45,034 --> 00:54:47,733 incentive to be used to non-performing loans as soon as 1396 00:54:47,733 --> 00:54:50,167 non-performing loans as soon as possible. I think this is a 1397 00:54:50,167 --> 00:54:52,699 possible. I think this is a pressure which are uh fosters 1398 00:54:52,699 --> 00:54:53,600 pressure which are uh fosters equity because the script of 1399 00:54:53,600 --> 00:54:55,733 equity because the script of one way of doing with it, but 1400 00:54:55,733 --> 00:54:59,333 one way of doing with it, but also making the uh bankers sure 1401 00:54:59,333 --> 00:55:00,833 also making the uh bankers sure that’s they can focus on what 1402 00:55:00,833 --> 00:55:04,467 that’s they can focus on what is the capacity is lending and 1403 00:55:04,467 --> 00:55:06,000 is the capacity is lending and if things are not there because 1404 00:55:06,000 --> 00:55:09,233 if things are not there because something. To bring people in 1405 00:55:09,233 --> 00:55:10,334 something. To bring people in to understand something about 1406 00:55:10,334 --> 00:55:11,834 to understand something about the investment, so I think this 1407 00:55:11,834 --> 00:55:13,400 the investment, so I think this is something we should the 1408 00:55:13,400 --> 00:55:14,999 is something we should the timelines exactly exactly time 1409 00:55:14,999 --> 00:55:16,500 timelines exactly exactly time that this place is huge. I 1410 00:55:16,500 --> 00:55:17,433 that this place is huge. I think we have learned that also 1411 00:55:17,433 --> 00:55:19,266 think we have learned that also from the previous crisis so if 1412 00:55:19,266 --> 00:55:20,367 from the previous crisis so if we were to be confronted with 1413 00:55:20,367 --> 00:55:21,934 we were to be confronted with that would be uh that would be 1414 00:55:21,934 --> 00:55:23,700 that would be uh that would be a good a good policy advice and 1415 00:55:23,700 --> 00:55:25,500 a good a good policy advice and as we come to the end, I’d like 1416 00:55:25,500 --> 00:55:27,833 as we come to the end, I’d like you to perhaps ask one uh one 1417 00:55:27,833 --> 00:55:30,267 you to perhaps ask one uh one big question to all my 1418 00:55:30,267 --> 00:55:31,867 big question to all my panelists um in terms of what 1419 00:55:31,867 --> 00:55:34,200 panelists um in terms of what happens next, I mean the way 1420 00:55:34,200 --> 00:55:37,333 happens next, I mean the way that we the way we evaluate. So 1421 00:55:37,333 --> 00:55:38,000 that we the way we evaluate. So I appreciate that we’re living 1422 00:55:38,000 --> 00:55:39,700 I appreciate that we’re living in a world of very high 1423 00:55:39,700 --> 00:55:41,499 in a world of very high uncertainty the possibility of 1424 00:55:41,499 --> 00:55:42,800 uncertainty the possibility of the corporate sector getting 1425 00:55:42,800 --> 00:55:44,533 the corporate sector getting into trouble. is there the 1426 00:55:44,533 --> 00:55:45,534 into trouble. is there the possibility of that feeding 1427 00:55:45,534 --> 00:55:47,267 possibility of that feeding into the financial crisis? is 1428 00:55:47,267 --> 00:55:48,466 into the financial crisis? is the uh, and of course we’re 1429 00:55:48,466 --> 00:55:49,700 the uh, and of course we’re starting from a point where the 1430 00:55:49,700 --> 00:55:51,734 starting from a point where the sovereign is already over 1431 00:55:51,734 --> 00:55:53,633 sovereign is already over exposed um and already highly 1432 00:55:53,633 --> 00:55:54,933 exposed um and already highly involved as well as the public 1433 00:55:54,933 --> 00:55:57,233 involved as well as the public institutions so from the ECB to 1434 00:55:57,233 --> 00:55:58,801 institutions so from the ECB to all European institutions now 1435 00:55:58,801 --> 00:56:00,167 all European institutions now doing whatever they can to 1436 00:56:00,167 --> 00:56:02,767 doing whatever they can to help. um what in your view is 1437 00:56:02,767 --> 00:56:04,033 help. um what in your view is your number one priority. What 1438 00:56:04,033 --> 00:56:07,033 your number one priority. What would you like to see? As a 1439 00:56:07,033 --> 00:56:08,400 would you like to see? As a policy response as they in the 1440 00:56:08,400 --> 00:56:09,567 policy response as they in the immediate future, not in the 1441 00:56:09,567 --> 00:56:11,000 immediate future, not in the long term, you know in an 1442 00:56:11,000 --> 00:56:13,167 long term, you know in an effort to try and prioritize 1443 00:56:13,167 --> 00:56:14,699 effort to try and prioritize policies steps and actually 1444 00:56:14,699 --> 00:56:16,367 policies steps and actually greatly say what are the next 1445 00:56:16,367 --> 00:56:17,600 greatly say what are the next steps? I need to happen in 1446 00:56:17,600 --> 00:56:19,334 steps? I need to happen in order to support uh growth in 1447 00:56:19,334 --> 00:56:21,867 order to support uh growth in what is undoubtedly a very 1448 00:56:21,867 --> 00:56:23,867 what is undoubtedly a very uncertain environment, and 1449 00:56:23,867 --> 00:56:24,867 uncertain environment, and perhaps you can go back to the 1450 00:56:24,867 --> 00:56:26,699 perhaps you can go back to the same order as we started your 1451 00:56:26,699 --> 00:56:28,667 same order as we started your number one policy priority that 1452 00:56:28,667 --> 00:56:29,699 number one policy priority that you would like to see 1453 00:56:29,699 --> 00:56:31,234 you would like to see implemented uh in your own 1454 00:56:31,234 --> 00:56:33,134 implemented uh in your own jurisdiction of interest but 1455 00:56:33,134 --> 00:56:33,866 jurisdiction of interest but more globally if that is if 1456 00:56:33,866 --> 00:56:36,299 more globally if that is if that will help. I appreciate 1457 00:56:36,299 --> 00:56:37,133 that will help. I appreciate this is a difficult question, 1458 00:56:37,133 --> 00:56:38,667 this is a difficult question, but it is one that is gonna 1459 00:56:38,667 --> 00:56:40,734 but it is one that is gonna help us understand um in my 1460 00:56:40,734 --> 00:56:42,900 help us understand um in my view what a policy options are 1461 00:56:42,900 --> 00:56:44,700 view what a policy options are available and are effect 1462 00:56:44,700 --> 00:56:46,900 available and are effect implemented in the short run um 1463 00:56:46,900 --> 00:56:48,267 implemented in the short run um may perhaps start with you miss 1464 00:56:48,267 --> 00:56:50,733 may perhaps start with you miss you simply because we started 1465 00:56:50,733 --> 00:56:55,234 you simply because we started that order um with any policy 1466 00:56:55,234 --> 00:56:56,834 that order um with any policy within the institution the 1467 00:56:56,834 --> 00:56:59,367 within the institution the devil is always in detail so to 1468 00:56:59,367 --> 00:57:03,000 devil is always in detail so to me they keep priority now is to 1469 00:57:03,000 --> 00:57:05,733 me they keep priority now is to make sure that the recovery 1470 00:57:05,733 --> 00:57:08,167 make sure that the recovery fund will be a game changer 1471 00:57:08,167 --> 00:57:09,734 fund will be a game changer when it comes to long term 1472 00:57:09,734 --> 00:57:12,533 when it comes to long term growth and that’s. This will 1473 00:57:12,533 --> 00:57:15,100 growth and that’s. This will also send a strong message to 1474 00:57:15,100 --> 00:57:18,633 also send a strong message to equity markets that now is the 1475 00:57:18,633 --> 00:57:21,767 equity markets that now is the time to invest in equity in 1476 00:57:21,767 --> 00:57:23,600 time to invest in equity in Europe and you know on our side 1477 00:57:23,600 --> 00:57:25,900 Europe and you know on our side at EBRD, we are very active in 1478 00:57:25,900 --> 00:57:29,100 at EBRD, we are very active in equity markets We support 1479 00:57:29,100 --> 00:57:30,666 equity markets We support development of those markets in 1480 00:57:30,666 --> 00:57:32,333 development of those markets in countries where we operate we 1481 00:57:32,333 --> 00:57:33,933 countries where we operate we participate in equity funds and 1482 00:57:33,933 --> 00:57:36,801 participate in equity funds and we ourselves also take equity 1483 00:57:36,801 --> 00:57:38,733 we ourselves also take equity so make sure you use the money 1484 00:57:38,733 --> 00:57:40,000 so make sure you use the money well when it comes to your 1485 00:57:40,000 --> 00:57:41,667 well when it comes to your recovery, fund and pay 1486 00:57:41,667 --> 00:57:44,767 recovery, fund and pay attention. I markets wonderful, 1487 00:57:44,767 --> 00:57:47,333 attention. I markets wonderful, thank you very much mister. I’m 1488 00:57:47,333 --> 00:57:50,500 thank you very much mister. I’m sure you will on that. so uh 1489 00:57:50,500 --> 00:57:53,767 sure you will on that. so uh thank you I anyway I do 1490 00:57:53,767 --> 00:57:55,633 thank you I anyway I do understand your question of 1491 00:57:55,633 --> 00:57:57,867 understand your question of priorities at the same time I 1492 00:57:57,867 --> 00:58:00,700 priorities at the same time I must say I want to reiterate 1493 00:58:00,700 --> 00:58:03,133 must say I want to reiterate the message that I had from the 1494 00:58:03,133 --> 00:58:04,634 the message that I had from the start. I think it’s about the 1495 00:58:04,634 --> 00:58:07,234 start. I think it’s about the policy package um and there is 1496 00:58:07,234 --> 00:58:09,000 policy package um and there is no one magic bullet. I think we 1497 00:58:09,000 --> 00:58:11,334 no one magic bullet. I think we need to get the recovery right 1498 00:58:11,334 --> 00:58:13,034 need to get the recovery right getting the recovery right 1499 00:58:13,034 --> 00:58:15,299 getting the recovery right requires. Different initiatives 1500 00:58:15,299 --> 00:58:17,267 requires. Different initiatives that should go in parallel and 1501 00:58:17,267 --> 00:58:18,867 that should go in parallel and we have this challenge of 1502 00:58:18,867 --> 00:58:20,167 we have this challenge of getting physical policies 1503 00:58:20,167 --> 00:58:21,734 getting physical policies geared towards growth of 1504 00:58:21,734 --> 00:58:23,201 geared towards growth of getting the financing in the 1505 00:58:23,201 --> 00:58:25,434 getting the financing in the agree with all what Governor 1506 00:58:25,434 --> 00:58:26,667 agree with all what Governor Homan said. Also on the need 1507 00:58:26,667 --> 00:58:29,801 Homan said. Also on the need for equity and how to push that 1508 00:58:29,801 --> 00:58:30,800 for equity and how to push that Democratic capitalism and we 1509 00:58:30,800 --> 00:58:33,534 Democratic capitalism and we should get banking union fixed 1510 00:58:33,534 --> 00:58:35,366 should get banking union fixed these are my priorities Okay in 1511 00:58:35,366 --> 00:58:36,367 these are my priorities Okay in the package. that’s that’s fair 1512 00:58:36,367 --> 00:58:39,333 the package. that’s that’s fair enough. It is a prerogative we 1513 00:58:39,333 --> 00:58:41,333 enough. It is a prerogative we make uh as it was, said that 1514 00:58:41,333 --> 00:58:43,067 make uh as it was, said that the devil is always in the 1515 00:58:43,067 --> 00:58:44,266 the devil is always in the details and I think the 1516 00:58:44,266 --> 00:58:45,467 details and I think the priorities to make sure that 1517 00:58:45,467 --> 00:58:48,467 priorities to make sure that all the member states 1518 00:58:48,467 --> 00:58:51,799 all the member states transports. The restroom I 1519 00:58:51,799 --> 00:58:54,367 transports. The restroom I mean, as it’s drives a lot of 1520 00:58:54,367 --> 00:58:55,734 mean, as it’s drives a lot of room for negotiations and 1521 00:58:55,734 --> 00:58:57,400 room for negotiations and because there was some last 1522 00:58:57,400 --> 00:58:59,900 because there was some last minute uh compromise to be made 1523 00:58:59,900 --> 00:59:01,299 minute uh compromise to be made uh I hope that the numbers that 1524 00:59:01,299 --> 00:59:03,334 uh I hope that the numbers that we try to replicate the future 1525 00:59:03,334 --> 00:59:06,267 we try to replicate the future of the chateau uh as much as 1526 00:59:06,267 --> 00:59:09,034 of the chateau uh as much as possible. Thank you very much. 1527 00:59:09,034 --> 00:59:11,667 possible. Thank you very much. Governor ??? have the last word 1528 00:59:11,667 --> 00:59:13,533 Governor ??? have the last word There’s of course tempting now 1529 00:59:13,533 --> 00:59:15,733 There’s of course tempting now saying sings about policy but 1530 00:59:15,733 --> 00:59:16,934 saying sings about policy but since in the quiet period or 1531 00:59:16,934 --> 00:59:18,400 since in the quiet period or even allowed to say so go back 1532 00:59:18,400 --> 00:59:20,967 even allowed to say so go back to some. It’s not in charges 1533 00:59:20,967 --> 00:59:24,300 to some. It’s not in charges but I think what has been said 1534 00:59:24,300 --> 00:59:26,733 but I think what has been said there we need to restructure 1535 00:59:26,733 --> 00:59:28,534 there we need to restructure and uh came in the Jesus Christ 1536 00:59:28,534 --> 00:59:31,266 and uh came in the Jesus Christ as we follow are making policy 1537 00:59:31,266 --> 00:59:33,834 as we follow are making policy makers empathetic wanting to 1538 00:59:33,834 --> 00:59:36,801 makers empathetic wanting to save everybody so everybody 1539 00:59:36,801 --> 00:59:39,467 save everybody so everybody every enterprise should be safe 1540 00:59:39,467 --> 00:59:41,200 every enterprise should be safe in order to overcome it. I 1541 00:59:41,200 --> 00:59:43,533 in order to overcome it. I think it’s time now where we 1542 00:59:43,533 --> 00:59:44,867 think it’s time now where we move forward has been set in 1543 00:59:44,867 --> 00:59:47,300 move forward has been set in the selectivity, which is much 1544 00:59:47,300 --> 00:59:50,634 the selectivity, which is much more difficult because. 1545 00:59:50,634 --> 00:59:53,534 more difficult because. Requires a selecting and the 1546 00:59:53,534 --> 00:59:55,600 Requires a selecting and the three, and this is a part where 1547 00:59:55,600 --> 00:59:57,299 three, and this is a part where I think policy makers need 1548 00:59:57,299 --> 00:59:59,334 I think policy makers need encouragement There’s also what 1549 00:59:59,334 --> 01:00:01,767 encouragement There’s also what has been said this should not 1550 01:00:01,767 --> 01:00:03,533 has been said this should not rely too much on public 1551 01:00:03,533 --> 01:00:05,800 rely too much on public ownership because public 1552 01:00:05,800 --> 01:00:07,466 ownership because public ownership has we know has not 1553 01:00:07,466 --> 01:00:10,767 ownership has we know has not been confused to productivity 1554 01:00:10,767 --> 01:00:13,733 been confused to productivity close and the and what we need 1555 01:00:13,733 --> 01:00:16,234 close and the and what we need in order to overcome the crisis 1556 01:00:16,234 --> 01:00:18,033 in order to overcome the crisis in economic terms, but also in 1557 01:00:18,033 --> 01:00:21,833 in economic terms, but also in social terms, it’s uh that. 1558 01:00:21,833 --> 01:00:24,167 social terms, it’s uh that. Gain the creativity of the 1559 01:00:24,167 --> 01:00:27,634 Gain the creativity of the individuals uh to move towards 1560 01:00:27,634 --> 01:00:29,700 individuals uh to move towards to new frontiers. It’s not only 1561 01:00:29,700 --> 01:00:31,767 to new frontiers. It’s not only the freezing but has said 1562 01:00:31,767 --> 01:00:33,699 the freezing but has said before we have to be open and 1563 01:00:33,699 --> 01:00:36,233 before we have to be open and use the crisis as an 1564 01:00:36,233 --> 01:00:38,699 use the crisis as an opportunity to implement it to 1565 01:00:38,699 --> 01:00:40,367 opportunity to implement it to civilization to have the 1566 01:00:40,367 --> 01:00:41,866 civilization to have the greener and and everything 1567 01:00:41,866 --> 01:00:44,299 greener and and everything there. But it’s a new and in 1568 01:00:44,299 --> 01:00:46,000 there. But it’s a new and in spirit and I think this is 1569 01:00:46,000 --> 01:00:49,467 spirit and I think this is something retrieval like to see 1570 01:00:49,467 --> 01:00:51,634 something retrieval like to see wonderful. I think we are 1571 01:00:51,634 --> 01:00:53,933 wonderful. I think we are coming to uh to an end now, let 1572 01:00:53,933 --> 01:00:55,400 coming to uh to an end now, let me uh first of all. Thank you 1573 01:00:55,400 --> 01:00:56,766 me uh first of all. Thank you all for taking the time to 1574 01:00:56,766 --> 01:00:59,500 all for taking the time to participate in in this and 1575 01:00:59,500 --> 01:01:00,800 participate in in this and participating in brutal annual 1576 01:01:00,800 --> 01:01:02,000 participating in brutal annual meeting. Governor Thank you 1577 01:01:02,000 --> 01:01:02,767 meeting. Governor Thank you very much for actually coming 1578 01:01:02,767 --> 01:01:04,933 very much for actually coming to Brussels. Uh I hope we will 1579 01:01:04,933 --> 01:01:07,233 to Brussels. Uh I hope we will be able to resume our normal 1580 01:01:07,233 --> 01:01:07,967 be able to resume our normal activity sometime in the 1581 01:01:07,967 --> 01:01:09,633 activity sometime in the future. Thank you for very 1582 01:01:09,633 --> 01:01:10,566 future. Thank you for very concrete suggestions for 1583 01:01:10,566 --> 01:01:11,733 concrete suggestions for helping us think analytically 1584 01:01:11,733 --> 01:01:14,166 helping us think analytically about what is inevitably uh a 1585 01:01:14,166 --> 01:01:16,966 about what is inevitably uh a huge problems facing the 1586 01:01:16,966 --> 01:01:17,800 huge problems facing the epidemic in the meantime, uh 1587 01:01:17,800 --> 01:01:19,967 epidemic in the meantime, uh let me also wish you all stay 1588 01:01:19,967 --> 01:01:22,367 let me also wish you all stay safe. Thank you for 1589 01:01:22,367 --> 01:01:22,967 safe. Thank you for participating and also thank 1590 01:01:22,967 --> 01:01:24,933 participating and also thank you to the audience for tuning 1591 01:01:24,933 --> 01:01:26,600 you to the audience for tuning in uh we’re having more events 1592 01:01:26,600 --> 01:01:28,333 in uh we’re having more events uh today and I hope you will 1593 01:01:28,333 --> 01:01:29,333 uh today and I hope you will always uh stay tuned in. we 1594 01:01:29,333 --> 01:01:31,234 always uh stay tuned in. we have more to discuss in the 1595 01:01:31,234 --> 01:01:32,234 have more to discuss in the meantime again. Thank you very 1596 01:01:32,234 --> 01:01:34,200 meantime again. Thank you very much for uh participating and I 1597 01:01:34,200 --> 01:01:35,400 much for uh participating and I hope to see you in person 1598 01:01:35,400 --> 01:01:37,133 hope to see you in person sometime in the near future. 1599 01:01:37,133 --> 01:01:41,634 sometime in the near future. Thank you again and good. Bye. 1600 01:01:41,933 --> 01:01:44,633 Thank you thanks very much. 1601 01:01:44,633 --> 01:01:50,200 Thank you thanks very much. That was wonderful. Thank you.