The European Central Bank published a speech by Executive Board member Isabel Schnabel reviewing the euro area’s post-crisis progress and arguing that reviving growth is now the central challenge, with priorities centred on deeper integration, faster innovation and greater sovereignty. The speech highlighted that inflation has been brought back to target without recession or financial instability, financial markets have become more integrated and banks have solid capital ratios alongside improved profitability. It pointed to scope for growth from reducing internal and external trade barriers and leveraging EU free trade agreements, as well as potential productivity gains from AI adoption and public research and development spending, including in defence. On sovereignty, Schnabel stressed reducing dependencies, referencing the EU’s renewables trajectory towards a minimum target of 42.5% of energy consumption by 2030 and constraints linked to export restrictions on critical raw materials. She also connected innovation and sovereignty to a payments technology agenda spanning cross-border payments via TARGET Instant Payment Settlement interlinking, tokenised central bank money settlement for wholesale finance and work on a digital euro for retail payments.
European Central Bank 2026-04-16
European Central Bank’s Schnabel sets out euro area growth agenda and highlights digital euro and tokenised settlement work
The European Central Bank published a speech by Executive Board member Isabel Schnabel arguing that reviving growth is now the euro area’s central challenge, with priorities of deeper integration, faster innovation and greater sovereignty. She noted inflation has returned to target without recession or financial instability, banks’ capital and profitability have improved, and highlighted growth opportunities from reducing trade barriers, leveraging artificial intelligence and increasing public research and development. Schnabel also linked innovation and sovereignty to energy transition and payments technology, citing concerns over critical raw materials and work on cross-border instant payments, tokenised central bank money for wholesale settlement and a potential digital euro for retail use.