Inaugural lecture of the EMU Lab by Isabel Schnabel, Member of the Executive Board of the ECB, at the European University Institute

Florence, 16 February 2024

More than 30 years after its inception, Economic and Monetary Union is widely seen as a success. It has steadily gained support among Europeans. Nearly 80% of euro area citizens support the single currency.^[1]

This is a strong vote of confidence, which shows that the euro is more than a currency. Our monetary union has become a global leader in social protection, a pioneer in fighting climate change and a guardian of free trade and democracy.

But these values and achievements are being increasingly questioned and challenged in a world that is becoming less open, less stable and less reliable.^[2] To assert its role, the euro area needs to remain competitive; it must be capable of creating the sustainable growth that our social and economic fabric depends on.

However, this capability is increasingly under threat. At the turn of the…