Europe Must Embrace Its Strengths and Add Scale, Schnabel Says

Isabel Schnabel, executive board member of the European Central Bank, during an interview at the ECB in Frankfurt, Germany, on Wednesday, Dec. 3, 2025. Asked about views that it's time for a German to lead the ECB and whether she could be that person, Schnabel said "if I was asked, I would stand ready." Photographer: Alex Kraus/Bloomberg Photo by Alex Kraus /BloombergArticle content(Bloomberg) — Europe has what it takes to build a thriving economy, but it must step efforts to implement reforms and embrace change, according to one of its top policymakers.Sign In or Create an AccountEmail AddressContinueor View more offersArticle contentThe continent is neither lacking ideas nor talent, and is one of few regions in the world where democracy and the rule of law remain firmly entrenched, European Central Bank Executive Board Isabel Schnabel said in a speech in Vienna. What’s needed is scale — and courage — to strengthen its economy.Article contentWe apologize, but this video has failed to load.Try refreshing your browser, ortap here to see other videos from our team.Article contentArticle content“Europe is a continent with huge potential,” Schnabel said. “The picture in Europe should be one of optimism — not because the challenges are small, but because Europe has the capacity and the tools to meet them.”Article contentTop StoriesGet the latest headlines, breaking news and columns.There was an error, please provide a valid email address.Sign UpBy signing up you consent to receive the above newsletter from Postmedia Network Inc.Thanks for signing up!A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againInterested in more newsletters? Browse here.Article contentShe added that “the key is to unlock the full potential of the single market — one of Europe’s most powerful assets.”Article contentSchnabel’s remarks build on an opinion piece published in the Financial Times earlier on Wednesday, in which she argued that the often-used description of Europe as a “continent in decline” is misleading. In fact, “by many measures, Europe is among the regions with the highest quality of life,” she wrote. Article contentStill, its economy has been struggling to cope with shifting geopolitical tides that brought trade levies, supply snarls and energy woes. Weak manufacturing is still holding back growth, with hope resting on defense and infrastructure spending to fuel demand.Article contentEuropean Union leaders are meeting on Thursday to discuss strategies to gain economic weight and become more independent from the US and China. In the run-up, ECB officials including President Christine Lagarde have leaned on them to be bold in raising competitiveness.Article contentArticle contentLast week, the ECB demanded “urgent collective action” and outlined five key measures in a checklist sent to heads of state. They included a savings and investment union, a digital euro, a deepening of the single market, policies to foster innovation, and simpler legislation.Article contentSchnabel argued that Europe must reduce regulatory hurdles and highlighted proposals for a so-called 28th regime, where the EU’s legal framework sits alongside national law, enabling firms to operate under a new business rules codified at the European level.Article content“By giving firms seamless access to the entire European market, it would provide the scale needed to convert innovation into economic growth,” Schnabel said. “It would allow Europe to compete as one economy rather than 27, and help create something Europe has long been missing: a true ‘Made in Europe’ brand.”Article contentTrending Trump privately weighs quitting CUSMA trade deal he negotiated Economy BlackBerry cofounder Michael Lazaridis invests in Vancouver-based AI startup Innovation Garry Marr: Say no to a free lunch for your RRSP today, expect fewer menu options at retirement Retirement The problem of the Toys 'R' Us $36-million gift card mountain Retail & Marketing As Cuba fuel crisis deepens, Canadians on the ground remain in vacation mode News Share this article in your social networkCommentsYou must be logged in to join the discussion or read more comments.Create an AccountSign in Join the Conversation Postmedia is committed to maintaining a lively but civil forum for discussion. 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