g7 2019 conference – banque de france, 10 may 2019 cybersecurity : coordinating efforts to protect the financial sector in the global economy conclusion by francois villeroy de galhau governor, banque de france press contact : mark deen ( mark. deen @ banque - france. fr ). page 1 sur 6 ladies and gentlemen, first, i would like to thank the moderators and the panelists for their very rich comments and the very useful ideas. we are all convinced that cybersecurity of the financial sector will remain on our agenda for a long time. the challenge is no longer about gaining awareness anymore, but to find ways to intensify and rationalise our action. based on the discussions today, let me start with one pre - requisite – coordination - and then propose concrete steps and tangible actions to improve our coordination in three areas : i. regulation and supervision ; ii. information ; iii. preparation. a. global threats, coordinated action panel 1 questioned the importance of cyber threats for the financial sector. there is a consensus that the level of cyber threats has never been so high, but at the same time, we must acknowledge that the capacity to anticipate attacks needs to be reinforced. following an attack, we need to address the potential contagion issues to the entire financial system or the entire economy. this is why coordination is a pre - requisite, not an easy one but a necessary one. while remaining realistic, there will not be a “ world organization for cybersecurity ” for obvious reasons, including trust. hence, coordination should be cross - jurisdictional. contagion can be global as our countries'financial systems are interconnected. this follows president macron's call for an " internet of trust " at the unesco forum in november 2018, which includes helping low - income countries to keep pace with developed countries. the imf and the world bank are encouraged to further develop their assistance program. in addition, coordination should be cross - sectors. the financial sector is not the only one concerned with cyber - attacks. other critical sectors are also at risk, some of which are essential to the functioning of the financial sector. this reinforces the importance of a cross - sectoral approach. national security agencies use this approach, and financial sector authorities page 2 sur 6 could also do the same at their level, taking into consideration the forthcoming g7 ceg fundamental elements. finally coordination should be cross - authorities,

under way and real disposable income growth is expected to benefit from lower rates of inflation. second, financing conditions are favourable. we also expect the stronger international environment to play an important role in stimulating euro area exports, and both domestic and external factors should foster investment. finally, the positive outlook for the euro area economy is very much supported by sound fundamentals and the absence of major imbalances. turning to price developments, let me first recall that, over recent months, annual rates of consumer price inflation have been affected by several factors of a special or temporary nature. this volatile pattern was broadly anticipated. however, annual inflation rates are currently somewhat higher than was expected a few months ago, with early estimates for march pointing to a figure of 2. 5 %. this is mainly because oil prices have again risen significantly in the more recent period. if sustained, higher oil prices would also have an impact on inflation rates in the remainder of 2002. while inflation rates are expected to fall to below 2 % later in the coming months, this decline may possibly be less pronounced than was foreseen, and inflation rates during this year could turn out to be somewhat higher than previously expected. beyond the shorter term, upward pressure on prices from aggregate demand should, in the light of current projections of a gradual economic recovery in the euro area, remain contained. in addition, the outlook for inflation is fundamentally dependent on wage moderation. such moderation is important not only in order to contain risks to price stability but also to foster employment growth. as i have already noted on earlier occasions, there is some cause for concern with regard to ongoing wage negotiations. fiscal policies in the euro area can also contribute to the maintenance of a favourable outlook for non - inflationary growth. it is vital that the commitments made to achieving balanced budgets by 200304 be firmly followed up in the member states concerned. a continuation along the path of fiscal consolidation is essential, as is vigilance in ensuring strict adherence to the medium - term plans and rigorous implementation of the procedures of the stability and growth pact. equally, the expected recovery should be seen as an ideal opportunity to strengthen efforts towards implementing comprehensive structural reforms a€ “ in public expenditure and revenues and product, labour and financial markets. heads of state and government confirmed this objective during their recent meeting in barcelona. if implemented vigorously, such reforms could increase the growth of real gdp and employment on a sustainable basis. past improvements in the functioning of markets, together with wage mode