The European & Finnish Economy: Pursuing Growth in the Shadow of Geopolitical Challenges

EACCNY in collaboration with the Consulate General of Finland in New York is organizing a fire-side chat with Dr. Olli Rehn, Governor of Bank of Finland and member of the European Central Bank’s Governing Council. Governor Rehn will explore the impact of political uncertainty on economic sentiment in Europe and Finland. He will detail inflation developments in the euro area, and provide insights into the ECB Governing Council’s monetary policy decisions. He will also explain some of the factors contributing to Finland’s gradual emergence from recession.

GUEST OF HONOR:

Dr. Olli Rehn, Governor and Chairman of the Board, BANK OF FINLAND – also a member of the European Central Bank’s Governing Council

                                   

Mr. Rehn has been Governor of the Bank of Finland as of 12 July 2018. He is responsible for monetary policy preparation, domestic economic policy, external communications, international affairs and internal audit. Governor Rehn is a member of the Governing Council of the ECB.

Mr. Rehn has held European and international posts for many years. He was Vice-President of the European Commission in 2011–2014. As a Member of the European Commission, he was responsible for Enlargement in 2004–2010 and for Economic and Monetary Affairs in 2010-2014, when his responsibilities included the reform of the rules of Economic and Monetary Union, financial assistance programs for the distressed countries, and the preparation of stability mechanisms. Mr. Rehn represented the European Commission on the Governing Council of the European Central Bank, in G7/G20 cooperation and at meetings of the International Monetary Fund in 2010–2014.

Backdrop

Political uncertainty overshadows sentiment in both the European and Finnish economies. The twists and turns of French politics and the dramatic events in the US presidential race increase uncertainty about economic development in the euro area. Additionally, the ongoing war on European soil and the challenges posed by technology and trade wars further complicate Europe’s competitive position in the global economy.

European Economy and Monetary Policy

In the euro area, growth in the services sector—including not only tourism but also ICT and other professional services—helps offset weaknesses in industrial production. From a monetary policy perspective, inflation is slowing towards the ECB’s 2% target in the medium term, supported by firmly anchored inflation expectations. However, wage and price pressures, particularly in labor-intensive service sectors, add uncertainty regarding future inflation.

Given the uncertainties about inflation, geopolitical risks, and the rise of protectionism, the ECB Governing Council decided to keep its key policy interest rates unchanged in its July meeting. This decision underlines the importance of relying on up-to-date, diverse data for decision-making.

The euro area lags behind the United States in R&D, technology adoption, and innovation. Therefore, Bank of Ireland welcomes Ursula von der Leyen’s plan for her second Commission to focus on restoring the EU’s competitiveness.

Finnish Economy

The Finnish economy, which has struggled significantly since the energy shock and inflation spike following Russia’s illegal war in Ukraine, is gradually moving out of recession. Low inflation supports household consumption, and any cautious recovery in world trade will boost demand for Finnish exports. In the long term, the sustainability of public finances and low productivity remain the main challenges for Finland.

Join us for this interesting discussion and learn more about the above challenges and possible scenarios.

TIME:
5:30 – 6:00 PM Check-in | 6:00 – 7:30 PM Program | 7:30 – 8:00 PM Networking

REGISTRATION FEE:
EACCNY Members: Free
EACCNY non-Members: Free