Speech by Christine Lagarde, President of the ECB, on the official dinner of Banka Slovenije in Ljubljana, Slovenia
Ljubljana, 16 October 2024
It’s a pleasure to be right here this night.
Not removed from right here, tucked away within the Nationwide and College Library, lie copies of the Abecedarium and the Catechism. These two texts, written by the non secular reformer Primož Trubar in 1550, had been the primary ever books to be printed in Slovenian.[1]
At a time when German was the language of the ruling lessons, Trubar’s pioneering act was elementary in serving to to ascertain the nationwide identification of Slovenians.[2]
At the moment, his portrait graces the €1 coin in Slovenia, framed by the well-known phrases discovered within the Catechism, “Stati inu Obstati” – “to face and face up to”.[3]
It’s telling that each books – one a primer for the Slovenian language, the opposite pointers for non secular observance – had been designed to show, for there may be a lot that Europe can study from Slovenia within the unsure world we now face.
The worldwide order we knew is fading. Open commerce is being changed with fragmented commerce, multilateral guidelines with state-sponsored competitors and steady geopolitics with battle.
Europe had invested significantly within the previous order, so this transition is difficult for us. As essentially the most open of the main economies, we’re extra uncovered than others.
So, on this new panorama, we too should study “to face and face up to”. And we will achieve this by drawing on two beneficial classes from Ljubljana.
Alternative in instances of uncertainty
The primary lesson is that uncertainty can create alternative.
Whereas many in Europe are anxious concerning the future, Slovenians aren’t any strangers to uncertainty.
Inside a single era, Slovenia made successful of the terribly tough transition from a deliberate financial system to a market financial system. Policymakers defied the percentages by implementing powerful structural reforms to first be a part of the EU and, later, the euro space.
At the moment, Slovenia is successful story. It’s a developed, steady and high-income financial system, with the best GDP per capita at buying energy parity of central and japanese European nations (CEECs).
The nation’s success owes a lot to the creativity and vigour of its individuals and their innate potential to grab financial turning factors and remodel them into alternatives.
For instance, when Slovenia joined the EU, it was uncovered to better ranges of competitors from different Member States within the financial bloc.
However Slovenia rapidly capitalised on its expert workforce to develop a brand new enterprise mannequin based mostly on deep integration within the Single Market. At the moment, each single automotive produced in Europe has not less than one part that’s made in Slovenia.[4]
For Europe, the modifications within the international financial system right now symbolize the same turning level. But when we strategy it with the fitting spirit, I imagine it may be a possibility for renewal.
A much less beneficial international financial system can push us to finish our home market. Fiercer overseas competitors can encourage us to develop new applied sciences. Extra risky geopolitics can drive us to turn out to be extra power safe and self-sufficient in our provide chains.
For Slovenia, the transformation of the automotive provide chain will probably be a selected problem. However the financial system is already adapting. For instance, in July this 12 months Slovenia secured a significant funding in home electrical automobile manufacturing.[5]
For a lot of Slovenians, striding into an unpredictable future could look like second nature.
One in every of your most well-known work, “The Sower”, hangs on show right here on the Nationwide Gallery. Depicting an agricultural labourer on the daybreak exhausting at work sowing seeds in a area, the portray represents Slovenians’ resolute dedication within the face of uncertainty.
The remainder of us in Europe might want to draw on this instance within the unsure instances forward. If we achieve this, we will additionally flip uncertainty into alternative.
The significance of sharing the advantages of change
The second lesson from Slovenia is that the advantages of change can – and will – be extra broadly shared.
The trail of renewal for Europe is inescapably linked with new know-how, particularly digitalisation. However new applied sciences can typically result in uneven labour market outcomes.
Slovenia has undergone exceptional technological change over the previous 20 years. At the moment, the nation’s stage of digital improvement is 7% above the CEEC common and it could actually compete with among the most digitally developed EU nations in sure areas.[6]
But Slovenia’s Gini coefficient – a measure of earnings inequality – is the second lowest within the OECD.[7] The nation additionally advantages from excessive ranges of gender equality. Feminine labour pressure participation is increased than the EU common and almost equal to that of males.[8]
Many in Europe are nervous concerning the challenges forward, similar to the consequences of synthetic intelligence on social inclusion. However we must always let Slovenia’s instance encourage us.
With the fitting strategy, we will transfer ahead and turn out to be extra technologically superior whereas making certain everybody can profit from the features.
And when everybody advantages, Europe advantages too. Over three-quarters of residents in Slovenia really feel hooked up to Europe, and virtually two-thirds determine as each Slovenian and European – ranges which are properly above their respective EU averages.[9]
Conclusion
Let me conclude.
In right now’s unsure world, Europe should study “to face and face up to”. And it could actually achieve this by seeking to Slovenia for instance of easy methods to overcome challenges that come its approach.
First, we should work exhausting to sow the seeds of success. After which, as the folks singer Vlado Kreslin sings, “vse se da” – “all the pieces is feasible”.
Thanks.