3. dominic cucic will present a paper showing that bank customers do indeed redistribute their deposits when deposit insurance limits change. 8 credible and reliable deposit insurance helps to prevent bank runs and preserve financial stability. 3 / 5 bis - central bankers'speeches in the euro area, we currently have deposit insurance at the national level. adding a european layer in the form of a hybrid model would help prevent situations where large shocks overwhelm national deposit insurance systems and lead to cross - border contagion. as a european layer should be risk - based, large exposures of banks to individual sovereigns are an issue. currently, many banks hold a disproportionately large number of bonds issued by their domestic governments. if this were to continue, a common deposit insurance arrangement could lead to a redistribution of sovereign solvency risks. in my view, the new eu legislative session provides a good opportunity to move forward on both issues : with a reduction in banks'exposures to individual sovereigns, and a common european deposit insurance system. 5 central bank interventions and market behaviour session 4 of this conference focuses on the impact of central bank interventions on market behaviour. both papers in this session underline that such central bank measures need to be carefully designed. 9 central banks have taken a wide range of non - standard monetary policy measures to ensure sufficient monetary stimulus at the effective lower bound. but in the medium to long term, such policies may lead to inefficiencies. these could arise in financial markets themselves or in the allocation of resources affected by the boost to lending. this makes it all the more important to evaluate the instruments used and the lessons learned. it is therefore very fitting that we are currently carrying out a strategy review in the eurosystem. amongst other things, this will provide an opportunity to critically review the quantitative easing policies we have seen in the past. the extensive bond purchases contributed to price stability in an era of low inflation, but they were also associated with numerous side effects in financial markets. without prejudging the outcome of the review, i think their use should be limited to exceptional circumstances. 6 conclusion ladies and gentlemen, the conference concludes with a panel discussion on the ecb's new operational framework. as i have already expressed my views on this on a different occasion, 10 i will end my speech by expressing my gratitude. thanks to the organisers from the bundesbank and humboldt university for setting up this conference. thanks to the presenters,

countries are facing some or even all of these challenges : climate change, digitalisation, an ageing population, and a fragmentation of trade, with a potential impact on globalisation. 1 / 6 bis - central bankers'speeches today, i would like to focus on the latter. the risk of deglobalisation is particularly acute for germany's growth outlook. its economy is far more open to trade than that of many other countries. so it's hardly surprising that changes in the environment for world trade are a crucial parameter for germany's success. 3 a changing environment for world trade those changes have been comprehensive and far - reaching over the past years, with both longer - term trends and sudden events playing out. up until the global financial crisis, international trade far outpaced world gdp. in a sense, international trade was fuelling the world economy. since then, we have witnessed a decline in that role. much of the shift can be explained by a fairly technical phenomenon : emerging market economies are not necessarily small economies any more. they represent a growing share of global gdp. but compared to advanced economies, they generally use a smaller percentage of foreign inputs in their own production. this shift of economic growth towards emerging market economies has thus automatically reduced the ratio of world trade growth to global activity growth. a likely factor that has gained attention recently is a perceived rise in protectionism. researchers at global trade alert have done the tedious but insightful job of classifying hundreds of individual trade policy actions over the years as either " liberalising " or " harmful ". the number of such interventions has risen tremendously. indeed, it increased tenfold within the space of just a decade. and it was " harmful " interventions that accounted for the bulk of this increase. discriminatory trade actions far outnumber liberalising ones. these longer - term developments have been accentuated by a number of shocks, most prominently brexit, the coronavirus pandemic and the war in ukraine. all these events have laid bare crucial dependencies in supply chains. 4 the role of value chains it's worth taking a deeper look at the role of international supply mechanisms : how did global value chains develop? why are they central to international trade? and what challenges do they face in terms of their resilience? global value chains represent production processes that are spread around the globe. different steps of the process take place in different parts of the world, each adding some value to the