in financial markets towards fair and ethical trading practices. consider the traction that sustainable investment has gained within the financial markets industry in recent years. green finance is no longer a niche market. the ecb is therefore also supporting work on sustainable finance - related topics in various fora, including at the level of the g20. all of this means, and with this i would like to conclude, that adhering to the code has benefits that go well beyond the fx market. as signatories, you are ambassadors for responsible investment. we need broad and active engagement, and the contribution of the entire fx industry, to continue ensuring that the code ’ s principles appropriately reflect the structure of the fx market. in this respect, we rely on you, our foreign exchange contact group members, to do your utmost to fulfil this expectation and support us in driving this process forward. thank you. 1 according to the data available at the gfxc ’ s global index of public registers. 2 / 2 bis central bankers'speeches

that mutually aligned policies would deliver a faster return to price stability. it means that alignment between policies, where needed, must serve the objective of monetary stability and should not work to the detriment of it. 3 today, we are in a situation where low interest rates are not delivering the same degree of stimulus as in the past, because the rate of return on investment in the economy has fallen. monetary policy can still achieve its objective, but it can do so faster and with fewer side effects if fiscal policies are aligned with it. this is why, since 2014, the ecb has gradually placed more emphasis on the macroeconomic policy mix in the euro area. 4 a more active fiscal policy in the euro area would make it possible to adjust our policies more quickly and lead to higher interest rates. in our monetary union, national policies play the main role in fiscal stabilisation – much more so than state - level policies in the us. but national policies cannot always guarantee the right fiscal stance for the euro area as a whole. coordinating decentralised fiscal policies is inherently complex. and uncoordinated policies are not enough, because the spillovers between countries from fiscal expansions are relatively low. this is why we need a euro area fiscal capacity of adequate size and design : large enough to stabilise the monetary union, but designed not to create excessive moral hazard. there will be no perfect solution. when risks are shared, moral hazard can never be reduced to zero, though it can be greatly contained by proper design. at the same time, we should also recognise that sharing risks can help reduce risks. the building of a capital markets union, which would lead to greater risk - sharing in the private sector, would considerably reduce the fraction of risks that need to be managed by a central fiscal capacity. and a central fiscal capacity would in turn reduce risks for the whole union when national policies are unable to play their role. 2 / 5 bis central bankers'speeches in other regions where fiscal policy has played a greater role since the crisis, we have seen that the recovery began sooner and the return to price stability has been faster. the us had a deficit of 3. 6 % on average from 2009 to 2018, while the euro area had a surplus of 0. 5 %. 5 in other words, the us has had both a capital markets union and a counter - cyclical fiscal policy. the euro area had no capital markets union and a pro - cyclical fiscal policy. the road