the agenda ; and, ( 3 ) ensure consistency between our regulatory actions and macroeconomic policy. keeping up the momentum over the last few weeks, major international banks have announced impressive quarterly profits. it is striking that these performances were achieved only a few months after some of those same institutions came very close to failure. this might give the impression that the financial sector has recovered its balance and that no further reforms are necessary. nothing could be further from the truth. indeed, one major risk in the period to come is the emergence of a " business as usual " mentality. once the immediate dangers have receded, the incentives to reform may become weaker and the opposition stronger. it is essential that we keep up the momentum. first, it is clear to everyone that recent profits in the financial sector, while welcome, are, for the most part, a result of public policies implemented to combat the crisis. they would have not been possible without the low interest rates which currently prevail and the public guarantees still in place. second, there are signs that parts of the financial industry have resumed risk taking practices reminiscent of those which led to the crisis. this impression may be reinforced by compensation packages which, although formally compatible with g20 agreed rules and principles, may appear out of line with the underlying performance of the industry. at the same time, bank credit to the business sector is faltering, especially for small and mediumsized companies, and most of the negative effects of the economic downturn on balance sheets are still to come. it is therefore crucial that we keep focused on our long term goals. our economies need more robust and better capitalized banks. they need greater transparency and regulation of non - bank financial entities. they need more countercyclical prudential and accounting rules. they need sound infrastructures for clearing and settling credit derivatives, in order to minimize systemic risk. they need stronger and robust risk management and better governance in all parts of the financial industry. they need increased oversight and stronger supervision of systematically important institutions. as a result of the crisis, the financial system will be permanently changed. reforms will make it possible to increase its efficiency and, at the same time, improve its stability. this will be achieved through stronger international cooperation. it is very significant that the leaders announced in pittsburgh that basel ii will soon become a truly international standard and, at the same time, it will be reformed and adapted to take on board the lessons of the crisis. striking a balance the regulatory

, for its part, require another 125 billion euros every year. blended finance is needed for both transformations : the right mix of public and private financing could require more specifically a type of investment contract that tempts in private investment in the wake of public funding. page 9 sur 10 furthermore, the banking union, which has been so far only half implemented, is a natural complement to the cmu. i hereby call – loudly and clearly – for a “ green and digital financing union ”. together, pan - european capital markets and banks will be a powerful vector, enabling funds to flow freely across the euro area, especially for the use of the euro area ’ s excess of savings over investment, which should amount to around 370 billion euros or 2. 6 % of gdp in 2023 xvii. as part of a cmu, it is necessary to increase the supply of safe eurodenominated assets. following the welcome launch in 2021 of the next generation eu ( ngeu ) programme, a first step in forging a unified approach to financing eu borrowing was taken by the commission in 2023. under this approach, bonds xviii can be issued under the single name of " eu bonds ", which has the advantage of avoiding fragmentation and boosting the liquidity of issues. but we need to go much further, by aiming to combine the bond issues of the commission, the european stability mechanism ( esm ) and possibly the european investment bank : the pool would amount to 1, 100 billion euros, and we would then create a genuine european resource and benchmark. * * i would like to conclude by quoting a great american, born in germany, who has just passed away. henry kissinger is reputed to have asked " who do i call if i want to speak to europe? ” the exact quote would appear to be apocryphal, but the question remains a valid one – leadership in europe, and especially, leadership of europe. the dangerous world of 2023 requires the reawakening of europe, a force for peace and cooperation. and the anxious europeans of 2023 need the reawakening of europe, if we are to fulfil our promise of a sustainable prosperity. i have set out tonight a number of shared economic solutions. i would wish them to be part of the debate in the european elections, and i would still more wish them to support a shared franco - german ambition. to divide france and germany would be to condemn our two countries