the financial crisis of 2008. these reforms have served the european financial systems well during the covid pandemic. greater resilience of major banks at the core of the financial system has allowed the system to absorb, rather than amplify, the economic shock. and in turn, this helped european economies weather the storm. as we have seen, today europe and the world need each other more than ever in keeping the financial system stable and safe. focusing on the eu, how can it contribute to making this global agenda a success? first of all, the eu can play an active role in implementing the lessons learnt from the recent crisis. the immediate challenge is to facilitate an orderly exit from the different support measures 2 / 4 bis central bankers'speeches without creating shock effects or scarring the economy. also, any exit strategy will have to bear in mind the risk of spillovers to other countries from uncoordinated actions. next, the eu should aim to lead by example by implementing reforms in a comprehensive and consistent manner. in particular, the eu could make further progress in implementing the basel iii standards in accordance with the internationally agreed framework. in addition, policy makers need to strengthen the regulation of non - bank financial intermediation. for an internationally consistent approach, it is important that the fsb ’ s recommendations on money market fund reforms are taken on board in the upcoming review of the eu ’ s money market funds regulation. moreover, the covid pandemic has once again highlighted the unfinished agenda of increasing the growth potential across europe, completing the european banking union and the need to break the interconnectedness between governments, the domestic banking sector and nonfinancial corporates. additional measures are needed to develop the european capital markets union and facilitate private risk - sharing. finally, the eu can play a leading role in supporting the transformation of the financial system. with the sustainable finance strategy, europe is leading the way, for example with the development of a green taxonomy and incorporating climate risks into prudential regulation and stress testing. when it comes to meeting the challenges of rapid digitalization, the eu is making important progress on regulating crypto - asset markets, and creating financial oversight of critical third - party service providers. europe ’ s hands - on experiences with these initiatives can provide valuable input for the global discussions. the financial system has proven more resilient in light of the pandemic. this has illustrated the benefits of our collective, global reform efforts. the fsb

critical service providers. to this can be added the greater exposure to cyber risk. greater interconnections in the financial system increase the surface for cyber attacks, which have escalated during the covid pandemic. enhancing operational and cyber resilience will therefore remain an important item on the fsb agenda. next to digitalization, we face the ever - present challenge to address risks to financial stability from climate change. these risks reflect the particular nature of climate change : it is global in its causes and its implications, and it is pervasive, affecting all kinds of financial assets and contracts. if we want to safeguard financial stability and ensure the financing needed for the transition to net zero, it is key that climate related financial risks are adequately priced in financial contracts. this is crucial because financial contracts price the future, and that future is about to undergo fundamental change. the fsb ’ s roadmap for addressing climate - related financial risks aims to ensure that climate risks are properly reflected in all financial decisions. it covers disclosures, data, vulnerability analysis, and regulatory and supervisory approaches. because there are no international standards in place yet, not least relating to disclosures, we have an enormous opportunity to get this right from the start. we should not miss it. it is important to act early to address these big transformational issues in the global financial system. experience has taught us that global financial stability risks, like so many other global issues, are often best dealt with using a globally consistent approach. not because one size fits all, but because this makes national policies more effective, provided that the global approach leaves room to be tailored to country - specific circumstances when it comes to implementation. because of their history, to us europeans, this is second nature. from the treaty of rome to the treaty of maastricht, now 30 years ago, the process of european integration has always been about europeans working together to pursue common interests. that ’ s why we have always been a strong partner in fostering international cooperation and high - quality minimum standards. indeed, european countries have been key contributors to the international financial architecture. from the bretton woods agreement back in 1944 to the establishment of the financial stability board in 2009. when it comes to financial stability, the eu itself, but also other countries in europe, has benefitted greatly from its commitment to multilateralism. the centre pieces of the european financial regulatory framework as we know it today are based on the g20 reform agenda that followed