European Commission - Speech [Check Against Delivery] Keynote address by Commissioner Dombrovskis at the European Banking Summit 2026 Brussels, 28 January 2026 Good afternoon, ladies and gentlemen. Thank you for the invitation to participate in this year's European Banking Summit. It is a pleasure to join such a distinguished line-up of policymakers and business leaders. This year's summit focuses on three broad them...
European Commission - Speech [Check Against Delivery] Keynote address by Commissioner Dombrovskis at the European Banking Summit 2026 Brussels, 28 January 2026 Good afternoon, ladies and gentlemen. Thank you for the invitation to participate in this year's European Banking Summit. It is a pleasure to join such a distinguished line-up of policymakers and business leaders. This year's summit focuses on three broad themes: growth, innovation and security. I can assure you that the European Commission understands the importance and urgency of acting to secure all three. Today, I would like to share how we aim to deliver on these objectives. And on the role Europe's financial system, and most importantly, Europe's banks - can play. But before turning to how, let us first consider why. Why Europe must act? Or, specifically, why now? We all know that we live in a changing and challenging world. Long-standing dependencies and vulnerabilities are being exposed, and sometimes even exploited. This is especially true in areas like trade, energy, and - perhaps most of all - security. Europe has proven itself capable of navigating serious crises in the past. We emerged stronger from the economic and financial crisis, the COVID-19 pandemic, and the energy crisis. But today's challenges are different. It is no longer simply a question of how Europe can respond, adapt, and move on. We must instead think in terms of a more profound transformation to brace ourselves against new geopolitical realities. We must fundamentally alter Europe's growth trajectory today to safeguard our prosperity and security tomorrow. That requires action on all fronts and at all levels. Turning first to growth. The challenging external environment means that we must look at domestic drivers to fuel future growth. In other words, Europe must rely on its own strengths first. And we have many strengths. The Single Market, the rule of law, strong institutions and a highly educated workforce, to name a few. We must now redouble our efforts to make the most of these assets, enhance our competitiveness and unlock Europe's full growth potential. We have already made progress in implementing the Competitiveness Compass, the roadmap which guides the European Commission's work on building this more competitive Europe. Our simplification agenda is cutting red tape to eliminate billions of euro in administrative costs. Our Single Market Strategy is focused on removing barriers to trade within the EU. We have proposed a new Competitiveness Fund in our next long-term European budget to double funds available for research in strategic technologies. We are diversifying and strengthening our trade network. Earlier this month, the EU and Mercosur signed a historic agreement to create one of the largest free trade areas in the world. And just this week, we concluded a free trade agreement with India. This agreement cuts €4 billion in tariffs for exporters of all sizes and unlocks significant trade and investment opportunities. Negotiations are ongoing for free trade agreements with the Philippines, Thailand, Malaysia, the UAE and others. As you know, advancing this trade agenda is not without its challenges. But it remains essential to boost growth and enhance our economic security. The European Commission is also reflecting on how to enhance the international role of the euro. Already today, the euro is the world's second favourite currency for borrowing, lending and central bank reserves. The implementation of our competitiveness and security agenda will provide a further boost to the international role of the euro. And we need to take advantage of recent developments in payment systems – which are digitalising very fast – and the changing geopolitical environment. All of this – and more – is already underway. We must remain focused and maintain our ambition to strengthen Europe's growth potential. And our Member States have a crucial role to play in complementing these efforts. Targeted reforms and investments at national level can help ensure the initiatives undertaken at European level deliver maximum impact. Moving to innovation: Technology is transforming the way we live, work, and interact at an extremely fast pace. Our currency must also adapt. Europe needs a digital euro for the digital age. An innovative digital euro that's free, simple and inclusive. That meets the highest privacy protection standards and will work online and offline. This digital euro should be seen in the broader context of improving Europe's strategic autonomy. Today, our payments landscape is highly dominated by non-European providers. This makes us dependent on foreign-owned companies in an increasingly polarised and fragmented world. Ceding such a degree of technological control over the EU's economy to others could impede our ability to act autonomously. It poses real threats to our resilience and economic security. The digital euro is the solution. Its open access standards will be made available to the private sector. This will enable them to build innovative payment solutions on top of the digital euro and expand their services seamlessly across national borders within the EU. The digital euro is not intended to compete with private payment solutions, but rather to provide a complementary solution. One that fosters innovation and competition in the retail payments market. Last month, we overcame a significant hurdle in the way of making the digital euro a reality, with the Council reaching a general approach under the Danish Presidency. We now need to remain focused, complete the legislative work and accelerate our preparatory steps. We cannot afford to waste any more time. We need a digital euro. And we need it now. Moving to the third theme: security. Russia will continue to pose a threat to Europe's security for the foreseeable future. It is clear that Europe must now take responsibility for responding to this threat. Firstly, by continuing to support Ukraine. Because by bravely defending their homeland, Ukraine is also protecting the entire European continent from Russian aggression. We must never forget that. We therefore must continue to provide Ukraine with the support it needs to defend itself until a just and lasting peace can be secured. Earlier this month, the European Commission put forward its proposal for a €90 billion Ukraine Support Loan to deliver this crucial support for 2026 and 2027. We are now working intensely with the co-legislators to ensure a swift adoption of our proposal. In parallel, Europe must develop the capability to credibly deter its adversaries and respond to any aggression. This means rebuilding Europe's defensive capabilities and developing our defence industry. And that requires investment. The Readiness 2030 agenda will mobilise up to €800 billion for defence spending, including €150 billion through the new SAFE instrument. It remains crucial that we continue to invest more, better and together to maximise economies of scale and the impact of additional defence investments. And finally, with regard to finance. Europe's banking system has a vital role to play in Europe's transformation. A vibrant and resilient banking sector is a crucial foundation for achieving our shared objectives. Today, Europe's financial institutions benefit from a talented workforce, innovative and successful companies, a large pool of savings and a predictable and sound legal environment. But even with these assets, it is not living up to its full potential to serve the interests of our citizens and businesses. Europe's capacity to address current challenges depends on its ability to channel significant and sustained investments to where they are most needed. The Draghi report estimates these investments to amount to an additional €750 ‑ 800 billion per year by 2030. Our financial system is not fully channelling the productive investments Europe needs at the speed or scale they are needed. At the same time, approximately €10 trillion in retail savings are currently held as bank deposits in the EU. Integrating our capital markets can address this growing mismatch between savings and investment needs. Our strategy for a Savings and Investments Union will enhance our financial system's capability to connect savings with productive investments. The drive to enhance Europe's competitiveness must also apply to our financial sector. We want to ensure that our banks can compete on international markets without any undue disadvantage. In December, the Economic and Financial Affairs Council called for ambitious simplification packages targeting the EU's financial services regulation. In this context, the recommendations from the ECB's High Level Task Force on Simplification provide important input. As I have already mentioned, the Commission is pursuing an ambitious simplification agenda to enhance competitiveness. We have also heard your calls to reduce regulatory complexity in the financial sector. And we understand the “urgency to simplify”, as you put it recently. The European Banking Federation's “Simply Competitive” report is another important contribution to the discussion. We are grateful to have you as a reliable and trusted partner in our efforts to advance Europe's growth and competitiveness agenda. The importance of removing internal barriers also applies to the finance sector. We must create a real Single Market for financial services. The European Commission has long championed the implementation of Basel III standards as a cornerstone of financial stability and resilience. We are aware – as you have also highlighted - of the need to closely follow regulatory developments in other jurisdictions. The UK has delayed implementation of the Fundamental Review of the Trading Book to 2028. There is also a lack of clarity with regard to the implementation timeline and modalities in the US. We believe that a level playing field across jurisdictions is the bedrock of effective supervision and fair competition. To conclude, ladies and gentlemen, Europe has long had the assets and means to live up to its full potential. What was perhaps lacking was the necessary will. Today, global developments are providing the impetus for us to finally make the most of these assets. I believe that Europe can seize this moment. We know what needs to be done, And we are capable of doing it. Europe can deepen its Single Market, integrate its capital markets raise its productivity, boost its innovation, simplify its rules, expand its trade network, and enhance its security. Now is the moment to get on with the hard work of doing all this and more. And you have an important role to play. Europe's banks were once considered part of the problem. Not anymore. You are part of the solution to strengthen Europe's economy and complete the Single Market. Thank you. SPEECH/26/267
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