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, which is being taken forward in close conjunction with the ngfs and many other international bodies, aims to ensure that climate risks are properly reflected in all financial decisions. it covers disclosures, data, vulnerability analysis, and regulatory and supervisory approaches. this is important because, as we all know, what gets measured, gets managed. despite the progress made, the challenges are formidable. they range from identifying and collecting the information needed to measure and assess climate - related risks, to designing robust supervisory tools, such as climate stress tests and scenario analysis. 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. the changes i discussed – the move to a post - covid world, ensuring safe digital innovation, and transitioning to net - zero emissions – are global in nature, including their impact on the financial system. in order to promote global financial resilience and the smooth provision of finance to the real economy in the face of these changes, we need to continue our successful global cooperation. the fsb is uniquely placed to facilitate this, because of its three key strengths. first of all its broad, diverse and multi - disciplinary membership. the fsb brings together in a collegial spirit of mutual trust senior officials from 71 authorities in 25 jurisdictions, and 10 multilateral institutions, covering multiple mandates across different sectors. this broad membership enables the fsb to take a truly holistic – cross - sectoral and international – perspective on financial stability issues. such a perspective is key to understanding and tackling risks from digital innovation and climate change, which affect all parts of the financial system, as well as understanding system - wide risk in complex financial ecosystems like nbfi. it is also key to avoid regulatory arbitrage and fragmentation. and its broad membership, including the sectoral standard setters, puts the fsb in a position to coordinate effectively. the second strength is the fsb ’ s agility in addressing near - term threats as well as structural changes in the financial system, while keeping sufficient headroom to be able to respond to new emerging vulnerabilities that are detected. this agility was demonstrated at the start of the pandemic, when fsb members exchanged information on market developments and

further economic reform and integration. in this respect, the economist andrew rose recently published an interesting article on common currency arrangements. using cross - country panel data, he shows that countries with the same currency, trade substantially more than those with different currencies. interestingly, the impact of a common currency is also larger than of a fixed exchange rate regime, which reduces volatility but retains separate monies. in this light, the euro is the icing on the internal market cake by broadening and deepening its scale. but, as always, the proof of this cake is in the eating. indeed, the three years of the euro´s virtual existence confirm the dutch political and economic motives. though some tend to be misled by its exchange rate, the euro has proven to be rock solid with low inflation and, with it, a credible european central bank. now, with hard currency in hand, the public will become more aware of the fact that a euro is a euro, and that the internal stability of the euro counts. stable price developments and a low level of long - term interest rates provide a firm basis for growth. in addition, the euro ended once and for all the uncontrolled spending dynamics of the past. indeed, the eu is unique in having set itself a standard for sound government finances through the stability and growth pact. in this light, you probably all heard about the early warning that the european commission recommended for germany and portugal. as a consequence, both countries strongly re - committed themselves to budgetary consolidation and the close to balance rule of the pact. the outcome clearly reflects the respect of all countries involved for the pact, and underlines the credibility of the macro - economic policy framework in general. thus, the euro has offered a stable environment both to governments and business. finally, the euro has already made a spectacular impact on financial markets in europe. these have become broader and deeper, with a sharp rise in both the volume of capital issues and the spread of credit quality. compared to 1998, total international bond issuance in euros have more than doubled, and now compares well with the level of dollar - bonds. the sharp rise in the corporate bond market has increased financing possibilities and enhances merger & acquisition activities in europe. switzerland and the euro being closed in by euro - territory, the swiss can also reap the euro fruits, all be it partly, in terms of bigger investment and borrowing opportunities in the euro - market. in addition, the trading