“The reawakening of Europe and the Franco-German engine”

François Villeroy de Galhau, the Governor of the Bank of France, gave a guest lecture at Frankfurt School on 12 December 2023 about Europe’s challenges and the importance of Franco-German cooperation. The event, which was met with great interest among students and financial industry executives, was hosted by Professor Jens Weidmann and Professor Emanuel Mönch.

In his introductory remarks, Jens Weidmann emphasised that François Villeroy de Galhau is a true European not only in mind but also because of his family’s Franco-German background, being one of the founders and owners of the famous pottery producer Villeroy & Boch located in Saarland. In more than 50 ECB meetings Villeroy de Galhau and Weidmann sat close to each other based on the alphabetical order of their last names, providing many opportunities to exchange views and to build a friendship.

François Villeroy de Galhau started his guest lecture titled “The reawakening of Europe and the Franco-German engine”, with the remark that the Euro, being “Europe in the citizens pocket” is a true success story. He continued with the observation that Europe currently is stuck in various crises – the war in Ukraine, the rise of populism in politics and financial problems – and that the only way to successfully tackle these crises is by a common approach with France and Germany closely working together. “We, France and Germany, share more common challenges than ever. But we also have the common solutions”, François Villeroy de Galhau said. He then continued to elaborate on the three key transformational challenges he identified: 1) the transformation of work, 2) the digital transformation, 3) the green transformation. Often trapped in domestic and short-term agendas, Europe’s future lies in closer collaboration of its member states and in reconciling growth with ecological questions.

Governor Villeroy de Galhau concluded his speech with the famous rhetorical question raised by late Henry Kissinger: “Who do I call if I want to speak to Europe?” The answer: “Leadership is needed: Leadership in Europe and leadership of Europe. And in this respect dividing France and Germany would mean to condemn our two countries and Europe to insignificance.” Ending with a cautiously positive note, Governor Villeroy de Galhau said that he is convinced that the two countries can and must come together again.

The guest lecture was followed by a questions and answers session. The last question covered the Digital Euro, and Governor Villeroy de Galhau expressed his view, that it will be the next – and necessary – big leap forward, comparable to the introduction of paper money, which in France for example took place some 200 years ago.

The event’s attendees continued their discussions at a reception with snacks and drinks.