and fair for everybody. in the economic arena, we need some coordination of crisis exit strategies and, in parallel, support for the most vulnerable countries. here, international institutions have a crucial role to play, in coordination with regional institutions and mechanisms. the aim is not only to entrench the global economic recovery. we must also combat the backsliding in inequality and poverty as a result of the pandemic, and jointly address the common structural challenges arising, for example, from digitalisation and the fight against climate change. and, more generally, as former ecb president and now italian prime minister – mario draghi – put it : “ one of the main reasons why multilateral institutions exist is to create regulatory convergence, and therefore to increase trust between countries ”. 2 a role for multilateral institutions that goes way beyond their pure economic mandate. as such, the global recovery will be based on trust and solidarity between nations. is such cooperation possible? europe is a case in point. let´s take again the example of vaccines. when the prospect of a common vaccination pool and 2 / 4 bis central bankers'speeches the purchase of vaccines on an uncoordinated basis was aired, european institutions took the decision to cooperate. that has allowed vaccines to be provided at the same time for countries with very different production or vaccine - purchase capabilities. it is an example of cooperation worth exporting to global vaccination programmes. another example is the case of the policies needed to tackle climate change. the european union has pioneered a system of cross - country carbon emission rights. this mechanism, according to recent studies, has led to a reduction of more than 10 % in the emissions of regulated companies. 3this coordinated effort has seen the eu commit to a binding target of a net domestic reduction of at least 55 % in greenhouse gas emissions by 2030 compared to 1990. it far exceeds the commitment to cut emissions by at least 40 % under the paris agreement. again let us view the european union as a laboratory for what the multilateral effort can – ideally – achieve. european economic institutions : unfinished work however, in order for europe to play this role properly, europe should deepen its own integration project. only by addressing the remaining challenges of our political and economic integration process, we – european – can aim to contribute decisively to global objectives. let me end these remarks by underlying some of these remaining challenges on the economic front. the monetary union is one of the milestones of the

moderation in agricultural support price inflation, which will ensure that these prices only provide a baseline level of support when the farmer is in difficulty, without displacing market prices. accurate market prices, together with good dissemination of data on sowing patterns, can do a far better job than support prices in directing agricultural production to where it is most valuable and needed. somewhat paradoxically, raising energy prices to market levels will also lead to lower inflation over the medium term, the horizon over which the rbi is trying to contain inflation. the reason is that higher prices will reduce excessive consumption, reduce subsidies and fiscal deficits, and incentivize investment and competition, even while allowing prices to be determined by an increasingly stable and plentifully supplied global market for energy. the consequences of inappropriate or inadequate price adjustments will be that the reserve bank will have to bear more of the burden in combating inflation. let me turn now to financial inclusion. financial inclusion is about ( a ) the broadening of financial services to those people who do not have access to financial services sector ; ( b ) the deepening of financial services for people who have minimal financial services ; and ( c ) greater financial literacy and consumer protection so that those who are offered the products can make appropriate choices. the imperative for financial inclusion is both a moral bis central bankers ’ speeches one as well as one based on economic efficiency. should we not give everyone, that is capable, the tools and resources to better themselves, and in doing so, better the country? last week, i met with some members of ela bhatt ’ s self - employed women ’ s association. in a room full of poor but confident women entrepreneurs, i asked how many borrowed from moneylenders before they came to sewa. about half the women raised their hands. when asked how many thought of approaching a regular bank before they came to sewa ’ s cooperative bank, not one raised her hand. interestingly, many of them said that the loan from sewa freed them from the moneylender ’ s high interest rate, which gave them enough to service sewa ’ s loan fully even while focusing on other productive activities. i have heard this from other micro - entrepreneurs – the highest return initial investment is often to free oneself of the clutches of the moneylender. despite this high return from the delivery of credit to the poor, and despite much of our financial inclusion efforts being focused on credit, we still reach too few of