Good morning everyone. We're here at UniCredit headquarters in Milan, Piazza Gae Aulenti, with UniCredit CEO Andrea Orcel to discuss how the banking system can and must support Made in Italy, its companies. Let's start with a fact. The largest bank in the United States has a market capitalization about eight times that of the largest bank in Europe. This is a problem: you too have repeatedly emphasized this difference in size and strength of the banking system, not only in the banking system, but also at the economic level. You have also repeatedly pushed for consolidation, not only you, but also the European Central Bank itself, consolidation not only at the national level, but also at the European level. However, this often comes up against, let's say, political barriers, at the national level. This is what Europe risks by not having—by not truly creating—a champion, one or more European banking champions. But Europe is at enormous risk.
I believe that in Europe we haven't yet realized that the transformation we need, the convergence we need, all the investments we're talking about, that we need, are not possible without financial support. Financial support comes from only two sources: the capital market and the banks. We have both an undersized capital market and banks, and this means that the European population is unable to invest in the transformation of this economic bloc. This is why we continue to have more than a third of European savings that aren't channeled into investments but remain in deposits or in cash that don't generate any economic benefit. While in the United States, this proportion is 10%, three times less. Furthermore, European investments are channeled much more abroad outside Europe than the opposite from the United States. Exactly. So we have a European bloc that has all the credentials to be an economic bloc that can compete with the United States and China. We have talent, we have creativity, we have innovation, we have manufacturing, we have global brands, we have everything, but by not adequately sizing certain industries—banking, capital markets, energy, defense, etc.—we're failing to bring out this value and therefore remain undersized compared to what we should be.
Now, let's also look at Italy, which is Europe's third-largest economy, but sometimes it feels like it's not being considered for its economic weight. So, in your opinion, what are Italy's strengths, and how can Italy help Europe become more competitive?
But Italy, as always, like Europe, has so much potential. Let's go back to what we said before. So, if we look at creativity, innovation, design, talent, even technological innovation, manufacturing excellence, we're talking about Italy. Second, it's still the third-largest economy in Europe and a G7 member. Third, it's a key entry point into the European Union, which has 450 million consumers. And I say a fundamental entry point because if we ask many foreigners where they would like to live to access the European market, Italy is at the top of the list. However, as always happens, we are failing to fully realize this potential due to a whole series of roadblocks, bureaucracy, obstacles, and difficulties. So it has enormous potential, and Italy can take a truly leading role in Europe by trying to resolve these issues and realize its potential.
Now, looking at the consolidation in Italy in recent years, there has been a strong upsurge in the banking sector, which was considered—and many years ago, it was called—the famous petrified forest. So, this could provide further help to the economy, and what else would be needed, given that this consolidation often clashes, as in your case, with political difficulties?
But let's go back to what we said at the beginning: a strong economy needs strong banks, a strong market of functioning capital. Leaving aside the capital market, which is a pan-European project, it must be. Banks must strengthen and grow. I believe Italy has missed an opportunity to continue to grow its banks. We have, and we don't have, in many industries: two banks that are among the top four in Europe. Two banks in the top four. In how many industries can we say we have two banks in the top four with very different business models, one focused on the country, one much more international. We should help these banks strengthen, not only to provide greater support for investments in Italy, but also to take a leadership role in Europe, in an industry that ultimately is the industry needed to finance everything. Unfortunately, due to a whole series of concerns that I believe are unjustified, we have not been able to achieve this.
