Keynote Speech by John Glen MP, Economic Secretary to the Treasury, at a German Economic Council event in Berlin
Keynote Speech by John Glen MP, Economic Secretary to the Treasury, at a German Economic Council event in Berlin on 27 April.
Introduction
Guten Abend, meine Damen und Herren! Lassen Sie mich zun盲chst sagen, wie sehr es mich freut, wieder einmal hier bei Ihnen zu sein, in einer der gro脽artigsten St盲dte der Welt.
Good evening, everyone 바카라 사이트� and let me begin by saying what a pleasure it is to be with you all here this evening바카라 사이트� back in one of the world바카라 사이트檚 great cities.
When the Wirtschaftsrat invited me here today, I didn바카라 사이트檛 hesitate to accept the invitation 바카라 사이트� for a very important reason.
In difficult times 바카라 사이트� when our most important values 바카라 사이트� freedom, peace, democracy, the rule of law 바카라 사이트� are challenged 바카라 사이트� it바카라 사이트檚 only natural that we all turn to our friends and partners who share those values바카라 사이트�
Values which are central to our existence 바카라 사이트� and our success 바카라 사이트� as liberal, market, prosperous societies.
Putin바카라 사이트檚 assault on Ukraine바카라 사이트� unprovoked and premeditated바카라 사이트� has been an attack against a sovereign, democratic, European state.
The United Kingdom stands with Ukraine바카라 사이트� and will always defend the Ukrainian people바카라 사이트檚 right to choose their own destiny.
We do so바카라 사이트� proudly바카라 사이트� alongside likeminded friends such as Germany바카라 사이트�
And let me say that the UK greatly welcomes Germany바카라 사이트檚 바카라 사이트淶eitenwende바카라 사이트� 바카라 사이트� your 100 billion euro special defence fund, and commitment to spend 2% of GDP on defence in support of our shared security.
We will continue to work closely with Germany in this new era of European history, just as we have done over the past months.. when together, with our international allies, we introduced the largest and most severe economic sanctions that Russia has ever faced바카라 사이트�
Measures that will help to cripple Putin바카라 사이트檚 war machine for years to come.
Sanctions
Finance, of course, is one of the most powerful components of our collective response 바카라 사이트� and an area where the UK is determined to act forcefully as part of the united effort.
Since Russia바카라 사이트檚 invasion, we바카라 사이트檝e sanctioned more than 1200 individuals, entities, and subsidiaries.
Over 3 million Russian companies, including Gazprom, have been barred from raising money on UK capital markets.
And we are doubling the size of our Office of Financial Sanctions Implementation to help ensure these additional measures are properly understood, implemented and enforced.
But clearly we can only succeed if both government and industry collaborate, to ensure these measures are effective. So, we are working closely with colleagues throughout the private sector to help overcome any challenges they may face at this time.
There can be no doubt that a coordinated, international approach will maximise the impact of sanctions.
It is vital that the international community throws its full weight behind these unprecedented measures and implements them robustly.
We in the UK, therefore, have greatly valued, the cooperation of our international partners, in particular Germany and the EU, in coordinating our economic response to the invasion of Ukraine.
I have no doubt that it바카라 사이트檚 thanks to those united efforts, that we have together been able to sanction many of the individuals and organisations providing political and financial support to Russia바카라 사이트檚 aggression in Ukraine.
By collectively targeting elites and oligarchs, cutting off transport and finance links and starving Moscow of technology and know-how바카라 사이트� we will make sure Putin pays the price while simultaneously degrading Russia바카라 사이트檚 ability to perpetuate this course of action.
To sum up, our sanctions are already biting바카라 사이트� and they will bite harder.
But financial services are not just a potent force against Putin바카라 사이트檚 war machine바카라 사이트�
Over the past weeks they바카라 사이트檝e proven themselves to be a symbol of western values바카라 사이트alues that must be defended and promoted.
I think there바카라 사이트檚 an important lesson for us here and one that we should continue to remember
Because inevitably, at some point, some nations will push back against the process of global integration that has been driven by the West. Something that could put our capital markets at risk of fragmentation.
That is why I argue that from both a security and economic perspective, it is in the interests of the UK and German, Europe and in fact all democracies to continue to build a financial system that is well-regulated and secure.
Something that we can achieve through forging an alliance of countries that share our values바카라 사이트� countries like Japan, Australia, South Korea and Canada.
In short, we should strive as far as possible for cohesion and actively avoid a situation where the financial systems of like-minded countries splinter and fragment.
There바카라 사이트檚 a practical, as well as a strategic dimension to all this of course.
Because as our continent emerges from COVID-19 and begins the task of helping to rebuild Ukraine바카라 사이트� we need more than ever the deep capital markets that will help keep the costs of funding European business low.
The case for cooperation 바카라 사이트� Financial Services
Of course, the cohesive response across Europe to Russian aggression not only underlines the need for long-term cooperation.
It also reminds us of how much we share as a global community, and that sometimes we can be a bit too focused on the smaller differences that divide us rather than our shared values and aspirations.
But I know that many of you will be wondering how I can rationalise a call for cooperation with the UK바카라 사이트檚 departure from the European Union.
In this City, which has seen so much바카라 사이트� where there are constant reminders of the divisions and unifications of the past바카라 사이트� I can see how it would be hard to understand the British people바카라 사이트檚 decision.
Nonetheless, that is what it was 바카라 사이트� the democratic, if not somewhat agonised decision of the British public.
And one of the messages that I want to send, while I바카라 사이트檓 here, is that if we now fail to cooperate in ways that benefit both the UK and Germany, it won바카라 사이트檛 just be a missed opportunity바카라 사이트� but a failure of statesmanship.
For me, as the UK minister responsible for financial services, that is a powerful notion.
Financial services have been part of both our countries바카라 사이트�바카라 사이트痚conomic바카라 사이트疍NA for centuries.바카라 사이트�
Over the years, our cities바카라 사이트� our citizens바카라 사이트� have pioneered banking and the buying and selling of stocks and bonds. They바카라 사이트檝e made and then remade the fabric of global commerce.
And the skyscrapers of London and Frankfurt are a testament to that fact.
Very often the people in those skyscrapers are communicating and trading with each other바카라 사이트�. with hundreds of millions of pounds and euros바카라 사이트� worth of financial services passing in both directions each year바카라 사이트� on top of the tens of billions of more conventional trade between our two countries.
British consumers, too, understand and appreciate German manufacturing.
In fact, the UK imported an enormous 拢53.8bn of goods over 2021.
It바카라 사이트檚 no surprise that German vehicles made up the largest proportion of these imports.
But the UK imports an array of other goods and services including medical, electrical goods and non-ferrous metals.
Of course, every nation 바카라 사이트� and every manufacturing sector 바카라 사이트� needs capital to grow, and I바카라 사이트檓 proud of the contribution Britain makes to Germany in that regard.
But I think we can do more.
In fact, I believe the UK 바카라 사이트� and the City of London 바카라 사이트� are perfectly equipped to help to drive growth바카라 사이트� not just in Berlin or Frankfurt, but in Dusseldorf, Hamburg, Cologne.
Because of available capital, yes바카라 사이트� but also because we have the largest and most developed market in Europe for related professional services such as accounting, management consulting and legal services.
We can make it cheaper and easier for German firms to raise capital.
Last year alone, 拢16.8bn was raised through 120 IPOs in London.
But the Chancellor and I want to build on this base to make our capital markets even more attractive.
That바카라 사이트檚 why we recently carried out a major review of our listing regime.
And, it바카라 사이트檚 why, following that review, we have made commitments on all its recommendations바카라 사이트� so we can optimise the capital raising process for large and small firms on our markets.
While there바카라 사이트檚, of course, a clear economic benefit to the UK, here, we think our deep capital markets have the capacity to support the growth and long-term success of our European friends and neighbours, including Germany.
I바카라 사이트檇 like to turn now to another area of great focus for the UK. That is green finance.
Green Finance
I바카라 사이트檓 certain we can all agree that the Financial Services industry has a crucial role to play in our response to environmental challenges like climate change.
Fortunately, many jurisdictions are now acting on sustainable finance and we at the Treasury are pleased to count Germany as a key ally in this space.
Under the UK바카라 사이트檚 G7 presidency last year, finance ministers reached a landmark agreement on sustainability disclosures.
I know Germany has eagerly taken up the sustainable finance baton for its own G7 presidency this year, which is most welcome.
And the G20, with its Sustainable Finance Working Group, is also taking forward important work in this space.
But though multi-jurisdictional action is welcome, it also brings certain risks.
Unnecessary divergence in jurisdictions바카라 사이트� disclosure rules limits comparability, hampering useability for investors and increasing compliance costs for firms.
That바카라 사이트檚 why it바카라 사이트檚 so crucial that jurisdictional standards be based on and align with international best practice.
So far that바카라 사이트檚 come in the form of the Task Force on Climate-Related Financial Disclosures바카라 사이트� recommendations바카라 사이트� but the IFRS Foundation바카라 사이트檚 International Sustainability Standards Board, is taking those high-level principles and making them fit for a regulatory standard.
By rapidly developing an international baseline reporting standard under strong governance, the ISSB will deliver truly consistent and comparable sustainability reporting globally.
In turn, this will enable international investors to identify, assess and correctly price in sustainability risks, then direct capital accordingly.
Countries are rapidly getting behind the ISSB as the de facto sustainability reporting body, with 41 countries welcoming its formal launch at COP26 Finance Day.
Digital Finance
Frankfurt, as the home of the ISSB, may be fast earning a reputation as a hub for green finance
But Berlin, is increasingly a centre for all things digital
Given this city바카라 사이트檚 long history of invention, enterprise and creativity 바카라 사이트� it바카라 사이트檚 little wonder that, dozens of fintech firms have sprung up here in the space of just a few years.
In fact six out of Germany바카라 사이트檚 seven fintech unicorns hail from this city.
But as in the UK, the success of your digital finance industry is not restricted to one city.
Nor are its benefits limited domestically.
An excellent illustration of the sector바카라 사이트檚 increasingly international footprint, is Stuttgart-based GFT Technologies바카라 사이트� plans to create a fintech-focused innovation hub in Manchester, which will create over 200 jobs.
This is clearly a win-win for both our nations바카라 사이트�
And I바카라 사이트檝e every confidence that the hub will be a fantastic addition to the UK바카라 사이트檚 busy digital finance space 바카라 사이트� which is also experiencing exponential growth in industries ranging from fintech to digital assets.
While the UK fintech sector is in a great place, we바카라 사이트檙e not complacent.
As a government, we see it as our job, to help the industry do its job of ensuring that success continues.
And we바카라 사이트檙e wholeheartedly focused on making that happen.
A key part of this mission involves striking the right balance on highly innovative, fast-moving sectors like digital assets. For example, we want the UK to be a global hub for cryptoassets바카라 사이트� and a top global location for starting and scaling crypto-companies.
We have a detailed plan바카라 사이트� we are determined to learn quickly. We want to take a leading role in harnessing the potential of blockchain and supporting the development of a world-best crypto ecosystem.
As you바카라 사이트檝e probably gathered, we바카라 사이트檙e hugely ambitious about this area.
Equally, though, we바카라 사이트檙e very conscious of the need to take the right, responsible approach to regulation for the benefit of firms, consumers, markets and financial stability.
While the UK government sets the overall framework, we believe in leaving our expert regulators to set firm facing rules and supervise their application.
This approach allows us to move nimbly while, simultaneously maintaining high standards..
A good example of this is our regulatory approach to stablecoins, that we recently set out.
These proposed legislative changes will create the right conditions for stablecoin issuers and service providers to operate and grow in the UK.바카라 사이트� While consumers will be able to use stablecoins with confidence because they have been bought into the regulatory framework.
More broadly, we are using crypto-technologies to make government more efficient바카라 사이트� developing opportunities to use distributed ledger technology for Customs and International Trade to ease the import of goods. And, of course, we will continue to support further opportunities to deploy this technology.
Conclusion
Ladies and Gentlemen,
I realise that I바카라 사이트檝e given you something of whistle-stop tour of all that바카라 사이트檚 happening in the UK financial services space right now.
But if I can leave you with one message it is this:
There is clear value to our markets being open and interconnected and I, as City Minister, am committed to maximising the opportunities바카라 사이트� for both our countries.
Open and global markets achieve the best outcomes for consumers and businesses alike바카라 사이트� by increasing access to expertise, talent and choice of products.바카라 사이트�
And our dynamic commercial relationship is proof of that fundamental truth.
We should be proud about what we바카라 사이트檙e already doing together바카라 사이트� but excited, too, about the future바카라 사이트� because the best is still to come.
Thank you very much.