Xavier Freixas is a professor of Financial Economics of the Department of Economics and Business at Pompeu Fabra University, within which he coordinates the research group in Financial Economics and Accounting (CREFC).

Research professor at Barcelona GSE and an expert in banking, banking supervision and regulation.  He has recently been appointed an independent advisor to the Catalan Institute of Finance, a public body of the Generalitat de Catalunya which aims to promote the growth of the Catalan economy and facilitate access by the business fabric to finance, as a complement of the private financial sector.

-What Is your role as independent advisor to the Catalan Institute of Finance?

An independent advisor must ratify or overrule the decisions of the management of an organization in order to preserve the interests of its shareholders and other stakeholders. In particular, s/he should ensure that the organization has a suitable internal auditing policy, both for the short and the long term. In the case of the Catalan Institute of Finance, this responsibility can be more complex because the interests of the shareholder, the Government of Catalonia, may differ in the short and long term due to possible political interferences and because the profitability of investments is not the goal of the organization, but, like many other investment banks in Europe, starting with the European Investment Bank, it aims to facilitate access by the business fabric to finance.  

-Has the situation of access to finance by the Catalan business fabric improved?

When the banking sector is in crisis, it immediately tightens the criteria for granting loans and imposes higher interest rates. The current improvement in growth leads to optimism, but in 2014 credit decreased by 4%, so it is difficult to expect positive growth. This means that more than ever, access to credit for small and medium-sized enterprises is limited and, therefore, the role of the Catalan Institute of Credit is vital at this juncture.

-Do you think the austerity policy that has characterized the EU in recent years is moving?

The policy of austerity might moderate, but the oppotunity there was to achieve greater flexibility has been compromised by the fighting between Greece and Germany.

"The oppotunity there was to achieve greater flexibility has been compromised by the fighting between Greece and Germany"

-With the current turmoil on the continent, how do you see the future of the euro?

The lesson of the current crisis is that leaving the euro is extremely difficult due to the mobility of capital. The speed at which Greek deposits have left the country is amazing. An exit from the euro, with the corresponding devaluation, would punish those who have not taken their money out of the country.

-To make the EU a successful project, must we go beyond harmonization in the economic and fiscal field?

The concept of the founders of the European project has become diluted. It is a Europe of countries where votes are exchanged. Efficiency is secondary to electoral interests. For example, how is it that there are boundaries in the invoicing of our mobiles when they work with satellites? How is it that we cannot have satellite television from other European countries? How is it that pharmacies agree their margins?

-Has the confidence of the international markets returned to the Spanish economy?

The situation has changed radically. The financial institutions have made considerable efforts to increase transparency, and growth is positive. During the first nine months of 2014, Spanish foreign debt has increased. This can be good or bad, but it does indicate that confidence has returned.

-Are the steps taken by the European Central Bank sufficient to restore credit to households and businesses?

They are steps in the right direction, but the funding of credit also depends on the fact that the projects to be financed must be sufficiently attractive to banks, and this is not always the case, especially in an environment of zero growth.

"The funding of credit also depends on the fact that the projects to be financed must be sufficiently attractive to banks"

-Has the major restructuring of banks and savings banks in Spain left a healthy industry? Have things been done properly?

Things were done pretty badly at first, but since August 2012 they have been done rigorously and with little political intervention. Stress tests show that the sector is healthy.

-Do measures such as the publication of the "Falciano List" help fight tax evasion and fraud?

Obviously they do. What we don't know is whether it can be generalized and the effect it may have in the long term, because large fortunes can move and families can relocate to other countries.

-What lines are followed by the research conducted at UPF in the field of financial economics and accounting?

UPF has a large team of researchers in the area of ​​banking and corporate finance. My interest is in banking theory and to understand how to define a banking regulation that allows allocating capital to the most profitable projects.