leap in strengthening the governance of economic policies and surveillance. if we do this, i believe that we will exit the crisis with a policy framework that will be much better and stronger than the one we had when the crisis began. some observers have said that the solution to our difficulties lies in more – not less – european integration, and i agree with this view. let me explain why. working together to meet these challenges is not just an act of solidarity ; it is very much in the best interests of all the participating countries and their citizens. monetary union is not a matter of convenience ; it offers us protection and improves resilience, provided that we embrace the underlying ideas and principles. just as the idea of statehood is that citizens gain from acting collectively, the european union embodies the idea that nations also gain from acting collectively. european integration is a long - term process, one that began after the second world war and has brought stability and peace to our continent. the crisis is now prompting us to ponder the direction in which our next steps should take us. this discussion is taking place not because we have failed, but because we have been successful. europe has succeeded in virtually everything it has sought to achieve. the ecb ’ s responsibility as regards the ecb, we are responsible for ensuring medium - term price stability in the euro area. the citizens of europe can rely on us to focus on this objective at all times. we have the tools we need to ensure price stability over the medium term. the fact that the ecb has full statutory independence gives us credibility in our pursuit of price stability. the mandate and independence of the eurosystem are enshrined in the treaty. the people of germany and the other countries of the euro area can rely on us to continue delivering price stability in the years to come, just as they have been able to rely on us in the first 11½ years of monetary union. during that period the general price level has risen by an average of just below 2 % per year – in line with our definition of price stability and better than was achieved by any of the currencies that merged to form the euro. conclusion ladies and gentlemen, public policy - makers make decisions on behalf of the people. in economic and monetary union, monetary policy decisions are delegated to an independent central bank : the ecb. this framework is appropriate and has delivered the results that the treaty demands and that our 330 million fellow citizens expect from us, namely medium -

this : can we respond to the economic shock we are facing – which is unprecedented in peacetime – in a way that reflects our fundamental common interest, as those generations of europeans did in the past? we have seen some encouraging signs of european cooperation. state aid rules were quickly relaxed and fiscal rules suspended, empowering a strong fiscal response to underpin wages and incomes. about 16 % of employees in the four largest countries are now enrolling in short - time work schemes and government - supported temporary layoffs. in parallel, the actions of the ecb, european banking supervision and national governments have dovetailed to put the banking sector in a stronger position to plug the liquidity gap facing firms, preventing an even sharper loss of capacity and jobs. bank lending increased by almost €120 billion in march, the largest monthly flow on record. 1 / 2 bis central bankers'speeches however, when it is safe to do so, europe will have to move to the next phase of its crisis response. the focus will need to shift from providing backstop support to enabling the recovery. this will present a new set of challenges. the ecb will play its part in line with its mandate. we will do everything necessary within our mandate to support the recovery and we remain undeterred in delivering on our price stability objective. on the fiscal side, the measures adopted in the euro area so far have been quite diverse, ranging from around 2 % of gdp to more than 40 %. in about half of euro area countries, government guarantees make up the largest share of the fiscal support. but the costs of the crisis continue to rise and, as we move forward, the form of fiscal support will likely change : discretionary spending may increase, automatic stabilisers will kick in further and – in more severe scenarios – the loan guarantees supporting firms could be called. the ecb estimates that – in our medium scenario of a drop in gdp of around 8 % – the additional government financing needs in the euro area this year resulting from the recession and the required fiscal measures may exceed 10 % of euro area gdp. this would put the additional debt issuance due to the pandemic in the range of €1 trillion to €1. 5 trillion in 2020 alone. we need, as a union, to be prepared for this future. since no one is to blame for this crisis, we must ensure that there are no undue constraints on our policy responses. not all countries have to react in the