climate neutrality by 2050 and aim to achieve negative emissions thereafter. the second important element is to ensure that we move towards that objective. the european commission has established a framework for assessing concrete progress and checking whether national and union measures are consistent with the objective. it will issue regular reports on the conclusions of these assessments. the third and last element is to ensure that we use the most effective instruments to achieve the objective. the introduction of a european scientific advisory board on climate change promotes the idea that all policies should be based on up - to - date scientific insights. it is hard to overstate the importance of the climate law. the eu is setting the bar high. allow me to quote what the law says about the transition to climate neutrality. it “ requires changes across the entire policy spectrum and a collective effort of all sectors of the economy and society [ … ] all relevant union legislation and policies need to be consistent with, and contribute to, the fulfilment of the climate - neutrality objective while respecting a level playing field ” [ 4 ]. we are starting to see this happen. from housing to energy and from transport to finance, the eu is introducing reforms to put europe on track to become the first climate - neutral continent by 2050. so how will the climate law affect the ecb? for me, as a member of the ecb ’ s executive board and the vicechair of its supervisory board, this question is relevant to both our monetary policy and banking supervision tasks. this question matters because, in the field of the environment, the ecb is a policy taker, not a policymaker. so what does the ecb need to take from the policy and objectives reflected in the climate law? to answer this, we first need to consider whether the ecb is bound by the climate law. if so, the ecb would have to take measures towards achieving the climate - neutrality objective. there is more, though. if the ecb is bound by the law, it would also have to ensure continuous progress in enhancing adaptive capacity, strengthening resilience and reducing vulnerability to climate change. moreover, it would have to ensure that its policies on adaptation are coherent with and supportive of other such policies in the union. that is quite a full plate. so, is the ecb bound by the climate law? there are definitely indications that it is. the climate law is addressed to “ relevant union institutions and the member states ”. in the european anti - fraud office (

willem f duisenberg : economic and monetary developments and other activities of the eurosystem introductory statement delivered by dr willem f duisenberg, president of the european central bank, at a hearing before the committee on economic and monetary affairs of the european parliament, brussels, on 12 september 2000. * * * today we shall continue our regular exchange of views on monetary policy and other activities of the eurosystem. i am glad to see that since our last meeting on 20 june the prospects for economic growth in the euro area have remained very favourable. at the same time, upward pressures on prices had emerged which needed to be addressed by the ecb in a timely manner and led to the decision on 31 august to increase the ecb interest rates by 25 basis points. i shall start my remarks by commenting in detail on this step and on our assessment of the monetary and economic developments in the euro area which underpinned our decision. subsequently i shall address some other issues of topical interest, namely the preparation of the euro cash changeover, the current efforts to improve the availability of statistical data in the eu and the role of the ecb in the oversight of payment systems. i shall then be happy to answer your questions. 1. economic and monetary developments turning to the ecb ’ s decision to increase the ecb interest rates by 25 basis points on 31 august, i should like to start my explanations by pointing out that, prior to the interest rate hike, upside risks to price stability were evident from both pillars of the ecb ’ s monetary policy strategy. starting with the first pillar, some moderation in the evolution of monetary aggregates has been gradually detectable over recent months. this could be related to the increase in short - term interest rates in the euro area over the course of this year, which has had a dampening effect on the demand for the most liquid components of m3, namely those included in m1 ( currency in circulation and overnight deposits, both of which bear little or no remuneration ). however, in spite of the deceleration observed recently, m3 growth has remained above the reference value. this, in part, reflects the relatively strong increase in nominal gdp in the euro area. furthermore, in order to assess the overall liquidity situation in the euro area, we have to acknowledge that, owing to the protracted deviation of m3 growth from the reference value which has occurred since the start of stage three of emu, the actual level of the stock of m3