Speech by Isabel Schnabel, Member of the Executive Board of the ECB, at a lecture in memory of Eugen Böhm von Bawerk, Österreichische Akademie der Wissenschaften

Vienna, 11 February 2026

We are living through a period of radical transformation. Technological progress is accelerating alongside profound geopolitical shifts, rewriting the rules that have governed global growth, trade and security for decades.

In this polarised world, Europe is often portrayed as a continent in decline, squeezed between geopolitical rivals, held back by excessive regulation and struggling to keep pace with rapid technological change.

In my remarks this evening, I will argue that although this narrative is appealing in its simplicity, it is misleading.

By many measures, Europe is among the regions with the highest quality of life, grounded in strong institutions, a high degree of social protection and an exceptional capacity to adapt in times of crisis.

Europe can build on these fundamentals to become…