13-15 SEPTEMBER 2021 SOPOT, from invited experts. The final version of the The European Financial Congress Project also THE EUROPEAN Recommendations is drafted in June, during comprises the following annual con- gresses and the Congress. The Recommendations must seminars organized each year between the June FINANCIAL CONGRESS, not lobby for or against anyone’s interests. EFC meetings: Corporate & Investment Banking So far, the Congress has developed and is- Congress, Retail Banking Congress, Consumer established in 2011, is a platform for debating sued a total of over 94 recommendations in Finance Congress, IT in Finance conference, the issues of financial stability, financing sus- areas related to: Risk and Capital Management in Banks seminar. tainable economic growth in Europe, and for discussing measures to ensure a successful » Enhancing safety and stability of the The Club for Responsible Finance and the future for Poland and the European Union. financial system EFC Academy for talented graduate and post- » Financing real economy and innovations Each year, the Congress is attended by more graduate students are run by the European Financial Congress as well. than 1,500 participants, among them eminent » Digitalization of financial services representatives of business, politics and sci- Held annually in June, the European Financial Moreover, the EFC participates in global ence, foremost experts from regulatory and Congress provides both a summary of the and European consultations conducted by supervisory institutions, law and consulting year’s work and inspiration for future pro- firms, as well as representatives of the me- the Financial Stability Board, the European jects, since it sets directions and objectives Commission, the European Supervisory dia. Over the previous ten editions of the for action to be taken in the year to come. Congress, more than 14.5 thousand partici- Authorities and the UNEP – Finance Initiative. The EFC invites Polish experts to provide their Due to the pandemic situation related to the pants have taken part in a total of 400 EFC spread of the COVID-19 virus, the European debates. opinions and develops joint positions, which are later presented to the bodies running the Financial Congress changed the format A distinguishing feature of the European international consultation projects. So far, of the June 2020 and 2021 meetings and held Financial Congress is its pragmatic approach over 500 acknowledged experts representing them on-line. Whereas, the 11th meeting of to the issues at hand. In the Recommendations financial authorities, financial sector regula- the European Financial Congress in Sopot, announced at the end of the debates, the tors and supervisors, commercial banks, in- Poland has been rescheduled to 13-15 Congress not only identifies most significant surance companies, investment and pension September 2021. The leading theme of the 11th challenges faced by today’s economy but funds, law firms and consulting companies edition will be Finance in a changed world and its also proposes practical solutions in areas have taken part in 49 consultations. The EFC crucial impact areas – economic, environmental which are crucial for the economic develop- coordinates such projects, collects expert ment of the EU and its Member States. and social. We believe that no ambitious visions opinions and prepares synthetic answers to of a responsible, fair and climate-neutral The EFC Recommendations are the result of consultation questions. The EFC is an active economic growth can be achieved without the year-round work of the Congress Program endorser of the Principles for Responsible changes in the world of finance. Board, with input from members of Steering Banking and an official supporter of the TCFD Committees of each thematic block and Recommendations. EFC ONLINE 2020

VALDIS DOMBROVSKIS TERESA CZERWIŃSKA PAWEŁ BORYS Executive Vice President of the Vice President of the European President of the Management Board European Commission Investment Bank of the Polish Development Fund “Money should flow easily to where “The biggest challenge at the mo- “We protect the development po- it is needed. The EU (…) gives ment is the future after the crisis. tential of companies, we try to cali- banks the right resources and flex- (…) Significant funds are planned to brate the amount of aid (...) The debt ibility to channel funds effectively make up for the distance lost during crisis in the corporate sector may to businesses and households. (…) the pandemic.(...) The EC’s priori- result in numerous bankruptcies. Both green and digital transitions ties are still relevant - Green Deal, The state will have to take over part will be important elements in our digitisation and new technologies of the corporate sector debt. There economic recovery.” will be financed.” is no other way.”

JEAN LEMIERRE Chairman of the Board of Directors of BNP Paribas Group “Monetary policy is not designed for banks – banks have to adapt. (…) Adapting means having a business model which is compatible with di- JIŘÍ RUSNOK versified activities, to have a busi- ANNA BREMAN ness model which is based more on Governor of Česká národní banka commission than interest rates and Deputy Governor of Sveriges Riksbank “I believe central banks will have to to have a business model which is RHIAN-MARI THOMAS be even more open-minded, cre- “Climate change can trigger a new cost-effective.” CEO, Green Finance Institute ative, flexible and visionary than crisis, just as severe as the coro- before. (…) Central banks should na pandemic. Climate change is “Environmentally-driven stimuli are in the short-run treat inflation not a threat to financial stability, but likely to be more effective at creat- as public enemy number one, but it is also a threat to price stability. ing jobs and aiding economic recov- as a basic economic-adjustment (…) Central banks have an impor- ery than traditional measures.” mechanism.” tant role to play in fighting climate change.”

MIHÁLY PATAI Deputy Governor of the Magyar Nemzeti Bank “We have relaunched a bond-pur- chasing program for corporates. DANIEL GROS Corporates can issue corporate Director of CEPS bonds (…) if they get a B+ rating, PAUL DE GRAUWE BRICKLIN DWYER the Central Bank of Hungary will buy “The federal at the European level up to 70% of the bonds which are John Paulson Chair in European cannot take over the essential func- Chief Economist and Head of the issued by Hungarian companies.” Political Economy at the tions of the government, but (…) if Mastercard Economics Institute School of Economics a member country is hit by a major “There is an open question as to the “Central banks can do much more shock, the Union as a whole is willing efficacy of direct payments versus than just care about stability of pric- to help (…) It’s no longer everybody loan guarantees in creating and es and financial stability. The ECB for himself and refusal to help the sustaining a sharper recovery. The should actually finance budget defi- others. We are seeing a beginning of post-COVID debt overhang can ob- cits directly by monetary financing.” a practical financial solidarity.” struct recovery and limit countries’ growth prospects.” 2019

ASHLEY BENIGNO Group Director, Fjord Part of Accenture Interactive NIKHIL RATHI NOURIEL ROUBINI CEO, London Stock Exchange Professor, Stern School of Business, New York University “It is vital for the future success of the European capital markets that “Europe has to deal with rising good innovative companies are able China, with rising US and aggres- to access local and global investors sive Russia. Unless Europe has the and that great care is taken, particu- right policy on trade, competition, larly in the context of brexit, to avoid regulation, immigration, foreign policies that might constrain the relations and defense it is going to flows of capital.” be a geopolitical midget. You have to have a common European vi- sion. Otherwise, you are going to be swallowed by the giants. (…) I believe Europe can be a bridge, a liaison between the US and China.” JONATHAN KNOTT British Ambassador to Poland “Our businesses and our people KONRAD SZYMAŃSKI could be better off if we have a good agreement. We look forward to a fu- Secretary of State for European Affairs ture relationship based on security, at the Ministry of Foreign Affairs of trade and people-to-people links.” Poland

AJAYPAL „AJAY” SINGH BANGA President and CEO, Mastercard

SIR ROGER GIFFORD 2018 Chair, Green Finance Initiative “The fundamental problem for us in finance is the market failure that SHANKER RAMAMURTHY CLIVE RYAN occurs when societal costs, the General Manager, Strategy & Market costs of climate changes, are not Director DACH, CEE and Benelux, Development, IBM taken into account. No market play- er today needs to take responsibility for shared negative consequences in the future beyond the short-term horizon.”

LUTFEY SIDDIQI SYLVAIN BOUYON JOHN VELISSARIOS Professor, London School Research Fellow, Head of Retail of Economics and National University Managing Director, Global Blockchain Finance and Fintech, CEPS of Singapore Technology Lead, Accenture 2017

ELMAR BROK PHILIP BAKER QC Member of the European Parliament KERSTIN AF JOCHNICK Professor, University of Oxford First Deputy Governor, Sveriges Riksbank

ELSA FORNERO VAZIL HUDÁK Professor, University of Turin; Vice-President, European Investment DANIEL DÃIANU Scientific Coordinator at the Center Bank Member of the Board, Banca Nationalã JOSCHKA FISCHER for Research on Pensions and Welfare “Poland is the key country of a României Policies Vice Chancellor and Minister of Central Europe. Without prosperity Foreign Affairs of Germany from of Poland, the region will not pros- 1998 to 2005, Honorary Chairman of per. It is both an opportunity and a the Program Board of the European kind of responsibility of Poland to Financial Congress the region.” “Solidarity in the political world means that we stand together and help each other. If things get se- rious, if there is a common threat, we also fight for the security of each other. (…) It would be extremely irresponsible if we let the European Union break up. I see no alternative to the Union. But we have to proper- ly respond to the needs of citizens.”

FRANCESCO MORITZ KRAEMER MAZZAFERRO Global Chief Rating Officer, Sovereign Head of the Secretariat, European Ratings, Standard & Poor’s Systemic Risk Board MARKUS MEINZER “If the authorities have to intervene Director, Tax Justice Network every ten years to support the finan- cial sector the public opinion will not accept it and the democracy will be at risk.”

YVES LEMAY Managing Director Sovereign Risk, Moody’s Investors Service

ED PARKER GUSTAVO PIGA Head of EMEA Sovereign Ratings, Fitch Professor, University of Rome Tor Ratings Vergata 2016

CARLOS E. PIÑERÚA LUCREZIA REICHLIN ANDREA ENRIA Country Manager for Poland Chairperson of the European Banking and the Baltic States, World Bank Professor, London Business School Authority “Inflation is getting closer to the tar- get but wages are surprisingly low even though employment has been growing. That is something we do not quite understand. So there is a JAN KRZYSZTOF BIELECKI certain amount of uncertainty about in 1991, how sustainable the inflation is.” Chairman of the Program Board of the European Financial Congress “The policy of inviting immigrants to Europe was not a demonstra- tion of solidarity, but rather a clas- sic instance of violating Europe’s external borders and weakening control of those borders. How can we talk about Europe if we can- not talk about European borders? (…) Unfortunately there is another threat, even more dangerous, which is the idea of ever-closer Union. This is a recipe for disaster. Most Europeans do not support this idea.” STEVEN MAIJOOR Chair of the European Securities and Markets Authority BRIGITTE GRANVILLE Professor, Director of the Centre for Globalisation Research, Queen Mary STEFAN INGVES Governor of Sveriges Riksbank, Chairman of the Basel Committee on Banking Supervision

ELKE KÖNIG Chair of the Single Resolution Board, Chair of the Resolution Steering Group of the Financial Stability Board Group

MATEUSZ MORAWIECKI Deputy Prime Minister and Minister YVES MERSCH of Economic Development of Poland Member of the Executive Board, “Out of the four freedoms of the European Central Bank European Union common market, only three work efficiently. But “It will be essential for both inves- the fourth one, free movement of tors and banks to have certainty on MARK MOBIUS services – which could primarily the overall level of capital require- benefit the so-called ‘catching up’ ments and the application of the Executive Chairman, Templeton countries of Central Europe that new resolution framework. Emerging Markets Group are hungry for success and will- In this respect, consistent im- ing to fight on the market – hardly plementation of the minimum works at all. If we want the future of requirement for own funds and Central European countries in the eligible liabilities across the EU European Union to be bright, it is in and implementation of total loss EWALD NOWOTNY our common interest to ensure that absorbing capacity in the common free movement of services works, EU framework will both be of great Governor of Oesterreichische especially in areas where we have a importance.” Nationalbank competitive advantage.” ROBERTO NICASTRO General Manager of UniCredit from KLAUS REGLING 2010 to 2015, President of the Good Managing Director of the European Banks Stability Mechanism, Chief Executive ANDRZEJ REICH LARS ROHDE Officer of the European Financial Director of the Department of Chairman of the Board of Governors, Stability Facility Banking Regulations, Polish Financial Danmarks Nationalbank Supervision Authority; Member of the Management Board of the European Banking Authority 2015

CARLOS DA SILVA COSTA Governor of Banco de Portugal

ANTONIO CARRASCOSA Member of the Board, Director of Resolution Planning and Decisions, Single Resolution Board PETER BRIERLEY Head of Resolution Policy Division, Resolution Directorate, Bank of England

EDOUARD FERNANDEZ- BOLLO Secretary General, Autorité de Contrôle Prudentiel et de Résolution, Banque de France President of the , Prime Minister of Poland from 2004 to 2005

JANUSZ LEWANDOWSKI Member of the European Parliament, KORBINIAN IBEL European Commissioner for Financial Programming and the Budget from Director General, Micro-Prudential 2010 to 2014 Supervision IV, SSM, European Central Bank “The disputed issues include find- ing the right balance between the European Union’s climate agenda and energy agenda and the ex-ante compliance check, i.e. auditing the contracts being signed by individual countries before and not after their ERICH LOEPER PIERS HABEN signing to eliminate the contracts Head of Banking and Financial Director, Oversight, European Banking that jeopardise security of supplies Supervision Department, Deutsche Authority and breach EU solidarity.” Bundesbank CHRISTOPHE NIJDAM WILHELM MOLTERER JACEK ROSTOWSKI Secretary General, Finance Watch Deputy Prime Minister and Minister Managing Director, European Fund of Finance of Poland from 2007 to 2013 for Strategic Investments BERNHARD SPEYER “The fact that ECB’s active mone- Senior Advisor, Senator’s Office, Berlin tary policy was effective in bringing Senate for Finance the European economy out of stag- nation does not mean that it will be equally effective in future crises. (...) The next step in rendering the euro area more efficient should be the establishment of mechanisms of common fiscal policy and not merely avoidance of excessively lax policy by individual countries, but also creation of common policy that would be expansive in troubled times and restrictive in good times.” JUKKA VESALA Director General, Micro-Prudential Supervision III, European Central Bank NICOLAS VERON Senior Fellow at Bruegel “Bank financing is quite good for catch-up growth. Start-up innova- tors need developed capital mar- kets, they need funding that does not come only from the banking channel. Capital Markets Union’s agenda should find a right balance to serve these different needs.(…) Now you see a lot of lobbying by 2014 banks who say: We do not want competition from other channels of financing the real economy.”

DAN BREZNITZ Professor, Munk School of Global LÁSZLÓ BARANYAY Affairs, University of Toronto Vice-President, European Investment “If we talk about policy of a state Bank and innovation what you really aim to do is to create agents that will do something that you don’t know what it is. (…) Innovation is taking new ideas and putting them into action all across the big chain of process- es that you have from the moment you invent to the moment in which you sell new or old but more relia- ble products and services on the market. Innovation is an act of do- ing that in order to have economic growth. It’s not the act of inventing AHMAD HUSNI new things.” HANADZLAH MARIA VAN DER HOEVEN Minister of Finance II, Malaysia Executive Director, International Energy Agency

DANUTA HÜBNER Member of the European Parliament, European Commissioner for Regional Policy from 2004 to 2009 STEFFEN KAMPETER PHILIPPE LEGRAIN PAUL ORMEROD Principal advisor to Jose Manuel Parliamentary Secretary of State, Barroso from 2011 to 2014 Partner, Volterra Ministry of Finance, Germany MARIO NAVA Director, Financial Institutions, European Commission

HANS-WERNER SINN ROLF WENZEL Professor of Economics at the University of Munich, President Governor, Council of Europe ANDRÁS SIMOR of the Ifo Institute for Economic Research Development Bank Vice-President, European Bank “The problem of Europe is the lack for Reconstruction and Development of competitiveness of southern Europe. The solution which the European countries have chosen is to mutualize the investment risk. This process is now leading again GÜNTER VERHEUGEN to excessive borrowing, where the fiscal constraints are no longer re- European Commissioner for Enlargement spected and where a huge moral from 1999 to 2004 and European hazard effect in terms of new bor- Commissioner for Enterprise 2013 rowing takes place. This is a wrong and Industry from 2004 to 2010 path. Debt financing is just a pain killer which reduces the incentive to go through the necessary painful, difficult surgery that Europe needs.”

WERNER HOYER AVINASH PERSAUD President, European Investment Bank Emeritus Professor, Gresham College JOSHUA AIZENMAN ROMAN FRYDMAN “Private investors are finding it “Is it a solution to the problem of Professor, University of Southern increasingly difficult to engage in banks whose assets are several Professor, New York University California long-term and large-scale projects, times higher than our GDP to allow “Prevailing economic and finance such as infrastructural projects. them to operate while transferring theory attempts to account for This is due to the risk profile of these burden of their bail-out from the such swings by presupposing that projects. The “Polish Investments” shoulders of local taxpayers to tax- market participants and policy of- programme has been launched to payer all over Europe? Or is it a solu- ficials never search for genuinely tackle such problems. (...) In order tion to have our banks better sized, new ways of using their resources to ensure sufficient involvement of as a percentage of local GDP? (...) and never revise the way they think private investors in infrastructural The reason why common supervi- about the future. As a result, the projects desirable from the point of sion is not able to provide a proper prevailing models account for risk view of the public interest, it is nec- surveillance is the imperative that and fluctuations in asset prices as essary to lend but also to blend with you need to understand the entirety if the future mechanically followed grants from national budgets and of macroeconomic conditions at the from the past.” the European Union budget.” local level.” DAVID G. MAYES PAUL SHARMA BORIS VUJCIC Professor, University of Auckland Deputy Head of the Prudential Regulation Authority and the Executive Governor, Croatian National Bank Director for Policy, Bank of England

2012

JÜRGEN LIGI Minister of Finance of Estonia JÖRG ASMUSSEN PAUL H. DEMBINSKI Member of the Management Board, European Central Bank Director l’Observatoire de la Finance

JOAQUIN ALMUNIA Vice-President of the European Commission “The capital holders should contrib- ute adequately to the cost of rescue or restructuring to limit the aid and the cost to taxpayer.”

LESZEK PAWŁOWICZ Professor, University of Gdańsk; Initiator and Coordinator of the European Financial Congress CHARLES GOODHART 2011 Professor, London School of Economics “The problem with Europe is that it is not just government debt, it is the intertwining of government and financial, banking and insurance ERIK BERGLOF companies, debt that actually caus- es the problem. And then it is the Chief Economist, European Bank problem that it is not just the banks for Reconstruction and Development of the country (...) it is banks in oth- er countries that are linked, notably including the European Central Bank itself. The Maastricht criteria were strictly faulty. They focused far too much on public sector debt, which in many cases (...) was not the problem (...), the problem was private sector debt, JOCHEN SANIO particularly banking debt, and the President of the German Federal bubble within the private sector (...), Financial Supervisory Authority and the current account deficit.” (BaFin) EFC THROUGH A LENS

SOPOT

11TH EUROPEAN FINANCIAL CONGRESS, 13-15 SEPTEMBER 2021 SHERATON CONFERENCE CENTRE, SOPOT

GDAŃSK

CONTACT: Rafał Broniewski Director, Foreign cooperation & Communication European Financial Congress Coalition for Strategic Mindset Brzozowa 8, 80-243 Gdansk, Poland phone: +48 58 355 53 76, mobile: +48 508 353 478 e-mail: [email protected] www.efcongress.com