Based on the Icelandic experience, a banking union makes perfect sense, but only fully for the eurozone, and even then it has to include all three elements in order to break the deadly embrace of banks and sovereigns. In the interim, I think small countries will have to impose their own prudential measures in order to defend themselves against the risks they face. Let me conclude here and give the floor to Patrick Honohan. BIS central bankers’ speeches  5
Then the energy of its single market, which we now have to push to its full potential:  Page 11 sur 14  Enabling our human capital  As you all know, there is a very strong correlation vii between growth and education. In Europe, we have some of the best education and vocational training systems – and you are the best proof of them! But there is a large human capital divide in the EU with regard to the distribution of skills. Southern EU countries, including mine, have a distribution of skills with more low-skilled people – Spain and Italy have twice as many as Sweden, as of share of the adult population – and fewer high-skilled individualsviii – France has half as many as the Netherlands or Finlandix. As education inequalities have been dramatically exacerbated during the Covid crisis, investment in education should be targeted as a priority in order both to raise human capital and reduce inequalities. On-the-job training is another factor of growth as tomorrow’s jobs will be even more changeable than today. Take the example of digital experts: “as of 2019, there were 7.8 million ICT specialists in Europe, which is far below” the requirement of 20 million experts, including “for key areas such as cybersecurity  Page 12 sur 14 or data analysis”x. Europe’s competitive advantage depends on its ability to ensure mobility through vocational education – what economists call “mobicationxi”. One word on the importance of “managerial quality” which can affect the implementation of innovative reforms inside firms.