 Yr hyn yn bryd, maen nhw'n fawr yn fawr. Can I first of all ask you to do as I'm about to do myself, turn it off. The emergency exits are the same ones that you came through in case there is a problem. But otherwise, we are very pleased to be able to welcome Werner Hoi anodd, Rwy'n mewn meddwl yw'r Felaneth a'r ystafell. A yr hyn yn ffordd ar gyfer yr ystafell, sy'n fydd y gynllun fwy deimlo, fydd y maen nhw'n ffordd y maen nhw'n cyhoedd. And ddim hefyd ynínig gweithio'r pechol ar eich ddweud. Ac mae'r rhan ydw'r bwysig iawn i thoseio ac mae'r rhan yn dechrau. Dwi'n fflud. Ddwy'n wef, gyda bod yn amlwgol a dwi'n gweithio'r Felaneth a'r Ystafell? Fodd o'r gweithio ystafell, dd sponsored this institute not the first time, but it's always good to be here. And what I planned together with Andrew McDool, our new vice president in the bank, this visit we thought we might pick an important date. So it was all prearranged over the last week. So I'm aware that today... maybe at least by prepare text, a little bit out of tune with what people are discussing now. Ac eich ddechrau, a byddwn i ymddangos i'w ddechrau ar y cyfnod, byddwn i'w ddechrau gyda cefnod i gynnyddio'r cyfnod o'r ddechrau, wrth fynd i'r ymdweud y cerddau yn gweld. Mae'n amser ydw i'n oes pethau, mae'n cyfnod ymdweud yn cyd-dweud i'i ddweud i'r cerddau. Ac mae'n fyddechrau yn gofio. Yn ymddangos, y dyfodol, sy'n eich cyfnod i'r cyfnod i'r cerddau, will translate into something that will impress us very much next week when the European Council convenes and the declaration between 27 plus one will come out and give some perspectives about how this will continue. It's a pleasure to be back at this important time, but not Not only because of the remarkable announcement this morning, but also because of the six years that I can now look back at my engagement in Ireland in my present capacity. That's almost on the day, six years now, and all in all, since my first visit as a government member to Ireland a quarter of a century ago, I've been observing what's going on in this country for more of half of the membership of Ireland in the European Union, and it's just breathtaking and amazing, and when we signed at County Fhingol yesterday a big agreement, a big loan from the development of that county, I must say I would not have considered this possible just six years ago, if not 25 years ago. It's really amazing, and there's so strong, give you so strong feelings when you see that this vocation européenne of Ireland is completely out of question in this country. Sometimes, however, when I present ideas and projects of the European Investment Bank, the EU Bank, I think we are making a big mistake of not telling the good stories about Europe. We allow European councils to develop in ways that after the meeting the heads of state and government address the national press conferences, tell their own domestic journalists how great they were, how much they have achieved to the detriment of the others. Mario Monti once told me, sorry I put this into a nice picture, he said, when I used to be Prime Minister of Italy, we all used to go to European councils as heads of state and government and everybody brought a brick and we put the bricks together and over time we erected quite an impressive edifice with these bricks. Nowadays we are talking about zero sum gains and everybody is trying to take the brick of the others and put it into the erection of the old, old statute at home. I think if we don't talk about European value edit, the win-win situations that Europe produces, then we cannot be surprised that people might get disenchanted or even get into temptation to vote negatively during a referendum. And I think this is an issue that needs to be addressed by the European Council because obviously if you maintain a position where everything that works in this country or in other countries is due to the geniality of the local politicians and everything that does not work in Europe is due to the idiocy of the Brussels bureaucrats, if that propaganda lasts for 25 years then you can't be surprised that afterwards somebody might vote negatively in a referendum when the Prime Minister all of a sudden says, but now you must vote in favour of Europe. It might not work as we have seen and this is such a painful process that we are currently going through with the departure of the United Kingdom from an EIB point of view. It is a terrible loss. The European Investment Bank loses one of its strongest shareholders, 16% of the shares, almost 10 billion euros of lending per year, a very, very good portfolio that we have in the United Kingdom. Oh, this is painful enough. We also lose a strong supporter on key objectives of the EU Bank on innovation, on energy efficiency, on climate change policy and also on development. DFID is one of our strongest partners in our third world activities. So that's pain enough, but in addition to that, and this is something that is overlooked and I have to explain it to members of the European Council all the time now because they must know that the prudential and statutory limitations of a bank depend upon the capital and the multiplier that you might be allowed to use in order to calculate the maximum lending space you have. An EIB is a very special animal in this respect, second to none in the world because there is no other bank in the world who would proportionally make of only 14 billion euros cash injected into this bank over 60 years. It has been only 14 billion euros. A lending volume of 85 billion per year, a loan book or balance sheet of 600 billion euros and a number of EIB bonds flying around the world of 500 billion euros because we have to capitalise completely on the capital markets. Everything we finance, everything we lend, we have to also to borrow. So people in the bank are always proud to say we are the biggest multilateral lender in the world, which is definitely true. We had two and a half times the size of the World Bank, but unfortunately also the biggest multilateral borough in the world because next year, according, well dependent on reflows, we'll have to go to the capital markets and ask them to lend us 70 to 90 billion euros in 2018. So it's a very strong market orientation there and this lending space that the European Investment Bank has on the basis of a capital paid in and callable capital of 240 billion euros will be reduced by 16% of the 240 billion capital, that's roughly 40 billion, and a garing ratio of 2.5. That means by 2019-2020 we'll have to see that our maximum lending volume will be reduced by 100 billion euros, which will translate in a reduction of our business in the European Union and outside development from 85 billion in the year 2017 to below 50 billion in the year 2020. So it is really significant. Their brids are blowing us a real, real bad deal. Well, I'm sure the member states of the European Union in 2017 will not allow that to happen and thank God we don't need cash. If now I had to go to the European Council and would say we need cash in order to compensate for that, I think we will be in big trouble because some member states would not even be able to cash in what we need so we can transform reserves into paid in capital, but that already is a quite a bit, unless you want to see the bank shrinking and we don't go for volume or for size because of volume or size or because we believe we are so beautiful, I think we are needed. I remember my first visits and my capacity as president of EIB here in Dublin. Wow, at that time we were really needed and I think we had very good talks at that time and brought about a considerable contribution to the recovery of Ireland at that time. Other countries are still in that similar difficulty and they does and beyond that if we really have now overcome the counter cyclical necessities of the bank because the economic crisis is coming to an end in most countries now, we can finally address the real issues which are so important for the competitiveness of Europe in the world and these are structural weaknesses of our economy. These are the huge investment gaps which we have at the European Union. These are the enormous gaps we have when it comes to research and development, when it comes to innovation, when it comes to the access to finance for smaller medium-sized companies which is still one of the biggest weaknesses of Europe in comparison for instance to the United States where 85% or 80% at least of corporate financing takes place by the capital markets while more than 75% of this kind of financing in Europe takes place via banks which have their limitations. So it is a really important time for the bank and Brexit is therefore not only for Ireland of crucial of vital importance how we handle this also for your bank. A year ago this week a former T-shock and a Kenny which we met last night together with Michael Noonan and expressed our gratitude for many years of excellent cooperation he opened then the EIV Dublin office our first permanent presence in Ireland run by Cormac Murphy or there he is our ambassador to Ireland or ambassador to your own country that's quite consistent but it definitely is the face of the bank here in Ireland next to Vice President Andrew McDool. Today one year after this meeting we are signing the EIV's largest ever loan for investment in this country. The 25 year, 490 million euro loan will support the construction of the new national children's hospital and finance nearly 50% of the total cost. A huge endeavour we just were there I've never been welcomed more coldly than at that site outside there in this huge compound but it's a heartwarming event if you see what is going to happen after a discussion of 25 years about the construction of this hospital. It's a great thing for us. It represents the largest ever financial engagement by the unions a long-term lending institution in Ireland and the first year be backing for a hospital in this country. Alongside support for the new hospital this visit also provides an opportunity to demonstrate the broader engagement of the bank in Ireland. Last night in sorts the chief executive finger county council and I signed a 70 million euro loan that will support 180 million euros of investment to upgrade and improve transport economic cultural and natural heritage across the country. This is one of a number of new initiatives supported by the EIV group in Ireland backed by the Juncker plan the joint EIV European Commission plan that was set up that was invented four years ago was set up three years ago was considered Buddha economics at that time because we promised to make an additional investment of 350 billion out of a guarantee facility that was fed by or out of EU budget and EIV reserves of 21 billion euros so the pseudo precision of the 350 billion stem from the simple multiplication of 21 as the guarantee facility times the factor of 15 because Mr Juncker at that time sitting in my office in the ninth floor of the building in Luxembourg when we among four eyes developed this Juncker plan basic idea said well if you if you find a guarantee facility of these 25 21 billion euros what can you make out of it what what can the multiplier be and we just have had the experience with the capital increase a few years ago where we had to deliver a multiplier of 18 within three months three years and we reached these 18 after already 27 months so obviously it worked very very well with the capital increase now how does that work with a guarantee facility and we said well there is no medical precision this is a thumb rule so with riskier projects smaller projects a factor of 18 might not be safely attainable but 15 we might might get and this what brought the strange figure of 315 into a speech text of Mr Juncker at that time it is amazing that well six months before the three years are over 80 percent of that dimension have been reached so the Juncker plan is a success and this initiative today is part of the implementation of the Juncker plan furthermore today i will visit later today i will visit the site of the future redevelopment at Grange Gorman expected to be by 110 billion euros from the EU bank earlier this day the third meeting of the island eib financing group chaired by minister Donohue saw the future engagement of the eib in key sectors discussed and it also provided an opportunity to hear how future health transport agriculture and business investment could be enhanced with the support of the eib group we welcome the initiative of the Irish authorities to identify areas where the EU bank can increase engagement and early next year we will confirm new financing to support capital investment where it is most needed that's the kind of action of joint action that is needed and it is indicative of how the EU bank with the Irish authorities are focusing not just on the short term but on structural issues to help put island on the path of sustainable growth this brings me to the subject of today's speech investing in europe's future from recovery to sustainable growth in europe we have been confronted with a series of challenges that have tested the core foundations of the european project we have experienced a decade of uncertainty which at the same time was a decade of inward looking it started with the first global financial and later sovereign crisis it spread to our economic outlook and over time it has had significant impact on politics and policy now more than ever in our before ever before in our recent history it is a time to act we as europeans must see these developments as a wake-up call and be reminded of the value of the european project and what is at stake it is my great privilege in my position of the president of this bank to travel throughout the world and listen to views of europe from outside the union and i'm constantly reminded that the european union is seen as a model for peace and economic prosperity freedom and solidarity for many around the world and minister don't know who this morning reminded me of the peace bridge dairy just a symbol of the way that europe contributes to growing together to overcoming cleavages and to bridging gaps like europe was the key requisite a prerequisite for my country to be able to be reunited three decades ago and overcome the terrible division of europe at that time and this is an observation that i hold to be true and a message that needs to be shared i'm deeply sent therefore by the decision of the british electorate to leave the european union we have seen that the message of hope and the value of the european project was not communicated and received by important parts of the population our bank is directly affected by brexit as a major state member state is leaving and mitigating actions will need to be taken i dwelt upon that already before the treaty is clear and the status of the bank is as well we are based in the treaties of roam and now the treaty of flizban primary law based institution of the european union so it really says only member states of the european union can be members of the eib it is beyond our remit to think about treaty change but i'm always a bit skeptical when it comes to treaty change deliberations because that treaty change temptations might might be joined by those who have completely different objectives when they think about amendments of the treaty so probably our political leaders will be very careful to engage in such an exercise so therefore if and when the uk leaves the u it ceases to be a member of eib the difficulties of the negotiations are obvious michelle barnier has the unenvi the unenviable task of fleeting the negotiations on the side u side to disentangle the uk from the u and settle the past and of course i will not enter into the details of this negotiation i just can report to you that the cooperation with the michelle barnier team is excellent and we have made best experiences recently again with the way he performs because you have to be aware that in a negotiation that is naturally on the side of the political leaders focus on the entire integration process and on budgetary considerations as far as money is concerned we are a little bit odd man out because we are not budget based we are capital market based and therefore uh it is sometimes overlooked that while the eu budget per year is roughly 140 billion euros uh the contribution that comes from us via loans and guarantees and financial instruments is 85 billion euros so that is a considerable part of the package that michelle barnier has to negotiate upon as a representative of all of us among the 27 i hope that rested alongside other political developments both on our continent and across the atlantic not to forget across the atlantic could represent a collective european awakening a turning point that leads to greater european self belief against this background the subject matter of today seems more than pressing more pressing than ever namely how should we invest in europe's future to put it on the path of sustainable growth european efforts at firefighting be there on the financial economic or political front have tested the strength of our commitment to joined up european action and diverted our attention away from our longer term goal of making europe more resilient in the future let me outline three pillars of a joined up EU response with a particular focus of course on the role of the EU bank first the first pillar is based on furthering financial sector integration and establishing a central fiscal capacity secondly the second pillar targets the needs to improve EU competitiveness and finally the third pillar emphasises the importance of strengthening cohesion and convergence to the first more resilient europe requires greater financial sector integration and fiscal capacity strengthening financial sector integration at the euro area level will help maintain financial stability against country specific shocks and support the transmission of monetary policy it will also be good for the EU as a whole as a matter of fact now that the united kingdom is obviously leaving the european union the congruence of EU and euro area is is growing considerably and that means that we have to overcome this sometimes a little bit artificial division between these spheres I as president of eib have deliberately never participated in the euro group meeting because non euro countries are always insistence that I begin each and every speech by the sentence we are not the bank of the 19 we are the bank of the 28 however with the biggest a non euro member leaving and with all the others with the exception of danmark having a commitment to one day join the euro group of your area I think there's something we need to think about if you don't want to waste the potential contribution of eib to the overall development of the eurozone and the european union to deepen integration we must step up ongoing efforts towards the banking union and the capital markets union we would need a financial system that channels savings effectively to the best productive investment opportunities within the european single market and we must ensure that improvements in financial markets are not due to extraordinary monetary stimulus but rather reflected durable strengthening of cross border investment ECB has bought us time and I think we can be grateful to Mario Draghi for his resolve in critical times doing what it takes whatever it takes it was the right answer the right signal at that time but we all knew that this is not sustainable very long the member states must use the time in order to bring about the natural there the necessary structural amendments and this has not been done everywhere it has been painful and tough for island but it has worked in other places of europe it has not worked at least not fully worked yet so we have now we now have to brace for cautious withdrawal of the monetary policy impulses that we have benefited from at first while much has been achieved in terms of strengthening the euro area we still have a way to go there are ongoing discussions on developing a common fiscal capacity to help absorb shocks to the eurozone economy in this discussion we should not allow ourselves to be too preoccupied with symbolic themes which however are the key headline producing thoughts in the media such as the designation of eurozone finance minister or the nature of a eurozone budget line we are will be caught in the next years in a fierce battle between those who seek further integration and strengthening of the community method and those who believe that the next steps in the deepening of the european union integration will have to go by the detour of intergovernmental cooperation and this will be the main problem and this is the difference between the proposals that are present on the market again this week by the proposals coming from president juncker and the commission which obviously strengthened also in the monetary sphere the community method while the proposals coming from several member states go obviously into the direction of strengthening the eurozone as a concentric circle within the european integration process and on the basis of a reliance on intergovernmental cooperation oh yeah time and less the community methods so i believe that we should concentrate on what we need what we need in the european union the strengthened eurozone deepened eurozone is a financial backstop what it needs is a backstop facility with funds for crisis scenarios because we will not be able and we should not rely on the IMF as much as we have done in the past the role can be played should be played by ESM which can be further elaborated but it is already far developed and i think the ESM is an excellent institution that serves the euro group very well the second competent component required is an investment facility which is in difficult times can act counter cyclically to quickly channel investments where they are needed most and which normal times can address the structural weaknesses of the european economy and this instrument exists as well this is the eubank that's the eib there is great potential for complementarity and mutual reinforcement between the institutions we are in very close contact with them and we are discussing these issues in detail this potential collaboration could make the emu more robust providing the central physical capacity to first that fastest competitiveness and furthest conversions of the emu all at the same time provides a stabilization mechanism and that could then fulfill a critical fiscal policy role that complements monetary policy europe must become more competitive i will cut that chart upon request of the chairman but i think we have to see that during the 10 years that we have invested into inward looking and in crisis management in europe the rest of the world has moved forward and if you look at we look at the competitiveness comparisons between southeast asia east asia south asia and the united states and canada we have lost many years and we need to catch up on this so it is time to end the inward looking and to mobilize our efforts to recover the costs of a largely lost decade which we have behind us in terms of competitiveness so the good news is the economy is back on track in europe but the picture would not be completely healthy if one wouldn't see that our researchers under the leadership of andrew mcdoul who is now the responsible vice president for the economic department of the bank shows or suggests an annual investment gap in the u of about 600 billion euros which a gap which has a huge effect again on the competitiveness position of euro the worst being infrastructure second key strategic areas like research and development climate and environment and last but not least digital and innovation a quantum leap is needed there countries such as my own own one which always believe it has the biggest strength you can think of is the weakest when it comes to digitalization and probably ranks somewhere between 23 and 25 in the list of the 28 in the implementation of the digitalization objectives so the eib obviously can play an important role there we have been providing around 85 billion euros in long-term financing in 2016 and the overall support that was brought about led to an increased volume of investment in europe of 280 billion euros i will not talk about the activities outside the european union but there the bank will have to play a role when implementing e-u foreign and cooperation policies in the next years so what we need here basically is to take advantage of the lessons learned from the yunca plan where we saw that the trend the paradigm change in the use of the e-u budget away from subsidies and grants towards more guarantees and loans and use of financial instruments must be continued and also translated into other fields of policy i'm strong advocate for applying these lessons learned also on development policy because if you look at the sustainable development goals to which all our member states subscribe to heavily new yur two years ago and the climate goals of paris we will never be able to reach that if we don't use financial instruments more and make a better use of scarce budgetary resources last word on impact and mr mcdwl could talk ours about this because he has been guiding the ar gyfnodol, ddau'r model yng Nghymru yn Llyfrgelliaid, yna yn ystod yn fawr, gallwn ei ddweud yn fawr y gallwn ymmygu yn ymwyaf yn y ddweud ystod yn ymwyaf o'r ddweud a'r ddweud ymwyaf o ddweud o'r ddweud o'r Ddweud o'r Banksydd yn 2015 a 2016, yn ystod o'r ddweud o'r ddweud o'r ddweud o'r ddweud, Overall 2.25 million extra jobs after five years With a 2.3% increase in GDP in the short-term and over the long-term the impact on productivity and competitiveness is the key issue and we believe that the level change in the European economy around 1.27 million extra jobs a yng Nghymru'r 5% yn yma yw'r hyn yn y bachafol yn gweithio. Felly, ydych chi'n gweithio, mae hynny'n ffordd neu ddau'r oedd ymgylchedd, ond mae'r hynny'n gweithio ar yn ôl ymgylchedd a ddau'r oedd yn ceisio'n ddau. Felly, mae'n bwysig i'r helpu i chi ddau'n dechrau'r ystau'n gweithio'i gweithio eurowch yng Nghymru yn ymweld i'r effordd i gael eu hwn ymweld i'r ysgolion i eu hwn. Yn ymgymru, mae'n rhaid i'n meddwl i'r gweithio'r rhai. Mae'r ymddangos ystafell o'r ddweud o'r Uned Gweithreitio Llywodraeth a'r Uned Gweithreitio Llywodraeth yn ymddangos,