Q&A with European Commissioner for Financial Services, Financial Stability and Capital Markets Union, Mairead McGuinness

As greater numbers of women take on high profile public roles across global and European finance institutions, there’s a renewed emphasis on the importance of increasing female leadership and presence in both the public and private sector. To mark International Women’s Day 2021, we spoke to some of the leading women in finance who are shaping Europe’s policy agenda.

“Those of us who have a platform must speak up – not for those who can make it and will – but for those who struggle and may not make it, but are ambitious enough to try.”

Mairead McGuinness

About Mairead McGuinness

What is one of your career highlights?

One of the most memorable highlights of my political career was the decision to run for election for the European Parliament in 2004. I was elected on the first count, and was re-elected on three further occasions. Of course running for public office is never a guarantee and there’s nothing quite like the fear of not winning. When you see an opinion poll that says you’re not quite there but you might make it, understandably it makes you very determined to try to succeed.

Before entering politics, I had an established career in journalism, so it was a real leap into the unknown – with no guarantee of success. However, the determination to succeed, coupled with an outright rejection of failure, was what motivated me to campaign for every last vote, taking nothing for granted.

How do you unwind?

Spending time on the farm, in the fields, in nature and just outdoors planting trees. When I can get back to Ireland from Brussels, which is much less frequently than in the past, I take great pleasure in walking with our sheepdog Sam through the fields. I draw great energy from being in nature and the sense of legacy that comes with planting something that will be enjoyed by future generations long after my time. Since the start of the pandemic, many people have also found comfort in nature, who maybe didn’t before. People have reconnected with a sense of just being in the outdoors, and the energy you can get from it.

When you’re constantly receiving information which you need to read, analyze and act upon, it’s difficult to make important decisions only sitting at the desk. You need time to reflect. For me the best place to do that is outdoors, especially at this time of year when so much new life is beginning.

What inspires you?

I strongly believe that if you are in a position of influence and have the potential to impact people’s everyday lives, you have a huge responsibility to read, think and consult before making decisions. So I am personally very motivated. If there is a job to be done – no matter how small or mundane – I will do it.

There’s a huge honor in having been elected to the European Parliament, and in being currently the EU Commissioner for Financial Services, Financial Stability and Capital Markets Union. But my time is short in this portfolio, I have four years to make a real difference. I’m really determined that we will achieve things that need to be done, including the need to refocus the financial system on sustainability. It’s been talked about as being a nice idea but right now, we’ve got to make that a reality. Instead of having a financial system that is only driven by a return on investment, we need the entire economy to look towards a wider vision of delivering on non-financial issues, which are at the core of the interests of EU citizens.

The experience of being a woman in finance

What does leadership mean to you?

In today’s world, after what we have gone through, the role of leaders and leadership is being redefined. Leadership is not just about being driven by a singular goal, whatever that might be. It’s about making sure that everybody that you work with is equally motivated and holds the same vision you have. Leadership is also about being open to being challenged.

It’s important to be understanding when people are home-schooling children and trying to work at the same time, and think about a new way of leadership as we evolve and emerge out of the COVID-19 crisis.

Why is it important to have women in finance?

It’s a very unequal world if it’s only all men. I have remarked on many occasions how I am the only woman in a (virtual) room, something which is often overlooked by the other participants. I am surprised by the lack of gender balance within the financial industry. I spent many years focused on farming and agriculture but the gender balance in finance appears poorer.

I am aware, and I think the industry is also aware, of the need for this to change and change quickly. Until the industry becomes more equal, women may find it difficult to speak up. If you’re the only women in the room and have an alternative view it can be very difficult to have your voice heard. I believe that in policymaking we need to have alternative views, these need to get discussed and debated.

How can we address the gender imbalance in finance?

What you see is what you get. So, we need to see more visibility of women in finance, before we get the balance right. And I think people like myself, or other women in positions of influence, need to encourage others. Whether it’s at secondary-school level, at university or by talking to companies and institutions, we need to help people see beyond what they might at the moment.

Those of us who have a platform must speak up – not for those who can make it and will – but for those who struggle and may not make it but are ambitious enough to try. Equally, only highlighting women in senior positions does a disservice to the many women who are in other positions within organizations and are also breaking down barriers. We need to make sure we don’t just highlight those at the top.

We also shouldn’t forget the unspoken part of the equation. We’re not open and honest enough about the challenges of balancing work, home, and children, and getting that balance right. We need to discuss it and address it more.

One thing we should all be is open to possibilities. And never close things off because it doesn’t fit entirely with the plan that you had in your mind. You never know where life will bring you. But if you’re open to all of the possibilities, the journey can be quite wonderful. It can be even more amazing than you might have ever hoped.

“If we could use the awfulness of this public health crisis to propel us toward our climate and biodiversity targets then we should.”

Mairead McGuinness

What’s on the horizon?

Will the focus on public health continue?

We all face the uncertainty of dealing with COVID-19, and how we recover and build back stronger and better from this pandemic. So, how do we unwind all of the supports that are so important for jobs and for businesses? There cannot be a cliff edge.

There has been a realization that our health is our wealth, and that this is what matters. I think we’re going to see much more European engagement in public health over the next decade.

How can we put the consumer at the heart of the financial system?

The pace of change in technology is rapid, especially in finance solutions, with the transition from traditional banking to digital payment services. In times when technology is advancing, we really need to be more financially literate, and be able to understand financial products. I think the financial system needs to focus on the consumer, on the end user. The consumer should be front and center of any changes in how we approach finance. Pensions are also a huge issue for younger generations in particular, and information around sustainable investments is very relevant as well.

How can Europe drive the green recovery?

The financial system needs to deliver, particularly on financing a sustainable recovery, and how we identify what is sustainable, and what rules we put in place. On the green deal – Europe’s growth strategy – it’s incredibly positive that nobody said we should ditch it and just focus on a recovery built around the status quo. Instead, everybody agrees we should use this as an opportunity to steer us towards our climate and biodiversity targets.

If we can make that big switch, and if we could use the awfulness of this public health crisis to propel us in that direction, and to do it better, then we should. And we have the budget to do so.

Europe is borrowing on the market and we have a strong MFF (multi-annual financial framework – the EU’s long-term budget for the next 7 years). I think member states know that it’s now or never.

It’s fantastic that the financial system and particularly the area I’m working in, is one of the main drivers of change. You know the phrase, “Follow the money”? It’s so true in relation to delivering on the green deal. We have got to get the money following sustainability. And I think the momentum is with us.

How are you building a green legacy?

I have no great desire to be remembered. If I’m honest, my hope is to be remembered for the trees I planted on the farm, so that those who will be around to watch them grow into magnificent oaks, ashes and birches will know that they were planted by me for their future.

Professionally, I hope that I will be remembered for my analysis of issues. My ability to ask the basic questions and when I fail to understand, being brave enough to ask again – who, what, where, why and when – the basic questions any journalist would ask. That training and lived experience over 24 years has equipped me well for the political role I’ve lived since 2004.