the ssm would ensure shared ownership of problems and decisions, encouraging a broader vision on the implications of the ssm ’ s decisions on financial stability. this could be achieved through the establishment of intermediate committees similar to those of the ecb ’ s monetary policy function. the separation of supervisory functions from regulatory ones is necessary for the political legitimation of regulatory standards. the overlap of regulatory and supervisory territories guarantees compliance with the principle of central responsibility for financial stability. in this 1 / 2 bis central bankers'speeches context, it is necessary to find ways to ensure and safeguard this basic principle within banking union. it is also essential to determine which coordination and convergence mechanisms between territorial regulatory and supervisory authorities can be established between the banking union and the remaining eu member states. one should not underestimate how much has been achieved in recent years. nevertheless, the foundations of europe ’ s financial architecture are still not sufficiently robust to withstand the impact of a future crisis. this should be a priority for policy - makers and relevant institutions. decisive political will to move forward with the completion of the banking union is required. in the absence of this will, europe must revisit its existing rules to safeguard financial stability. this is in the best interests of its people as few things can be more destructive to citizens ’ trust in european institutions than threats to financial stability. 2 / 2 bis central bankers'speeches

to respond to the evolving needs of labour and product markets. as technological progress changes the nature of work at an increasing pace, firms become more demanding with respect to the human capital they hire. for example, while demanding for more cognitive skills, they are also requiring better socio - behavioural skills, which are crucial for agile adaptation to change. the education system also needs to take into account the development stage of the economy. any serious mismatch between the skills offered by recent graduates and those demanded by firms inevitably leads to exclusion. a recent study by associacao empresarial de portugal, a portuguese business association, shows that, between 2011 and 2017, the share of unemployed people with post - primary education increased from 34 % to 48 %. such a growing share of high - quality untapped human resources highlights the need for an adequate interconnection between the education system and the next institution i would like to discuss : the labour market. in turn, a sound and dynamic labour market not only optimises initial matches between workers and firms, but also promotes fluid movements of workers across industries, regions and skills. while employment protection legislation and wage - setting institutions have successfully reduced wage inequality, excessive protection jeopardises firms ’ productivity and job creation – especially for low - skilled workers and new entrants. despite having become less restrictive since the 1990s, employment protection for permanent contracts in most of the european union remains above the oecd average. www. bportugal. pt lifelong learning is another critical element when considering the labour market, in the face of accelerating technological change. this means that authorities must search for the right balance between expenditure on passive labour market measures, such as income support and early retirement, and expenditure on active labour market measures, such as training or startup incentives – for most eu countries, passive measures absorb more resources than active measures. but as the world bank ’ s growing united report rightly states : “ opportunities for firms and people are complementary and jointly determine the potential to grow inclusively ”. if it ’ s true that an economy with few opportunities for people loses economic and political viability, it is also true that the lack of opportunities for firms promotes the migration of both people and firms towards more dynamic economies. this leads me to the third institution behind inclusive growth : the business environment. the business environment must be, simultaneously, supportive and challenging. one relevant component of the environment in which firms operate is physical infrastructure. firms need to