reinvested. the governing council also enhanced its communication on key interest rates in june, saying it expects key ecb interest rates to remain at their present low levels “ at least through the summer of 2019 ” and in any case for as long as necessary. on the whole, constant asset holdings, the low key interest rates and enhanced communication will keep monetary policy on a very accommodative track even after the net purchases have ended. it should be noted here that the degree of monetary policy accommodation as measured by the real short - term interest rate has risen again in recent months. this is the result of the higher actual inflation rate reducing the rate of interest in real terms, given unchanged nominal interest rates. ending the net asset purchases is therefore just a first step towards a necessary normalisation of monetary policy in the euro area. the next steps will of course depend on developments in economic activity and prices. however, this normalisation process will probably take place only gradually over the next few years. that ’ s exactly why it has been so important to actually get the ball rolling without undue delay. 2 / 3 bis central bankers'speeches it ’ s also a question of how much room monetary policy has to manoeuvre. if, contrary to our projections, the economy weakens, fiscal policy will have to do more than in the past to stabilise the situation. with that in mind, it is important to create fiscal space now and to ensure sound public finances. 4 challenges facing the euro area september will mark the tenth anniversary of the lehman brothers collapse, a decisive moment in the financial crisis for many. in the euro area, the financial crisis later merged with a sovereign debt crisis. we are still processing the fallout of the crisis and extracting the right lessons. our task in the euro area is to make its financial systems more resilient. it is crucial that we strengthen the competitiveness and growth fundamentals of the various economies. the heavy burden of public debt needs to be broken down. these are challenges that each member state must face individually. furthermore, the regulatory framework of monetary union has to be rendered more crisis - proof. this requires a better balance between individual responsibility for actions and liability. only then will misincentives be reduced. that ’ s not to say that i ’ m ruling out greater risk - sharing between member states in general. but those that are explicitly calling for more risk - sharing must also be prepared to relinquish more sovereign

areas. lower interest rates may provide short - term support. but they are no substitute for structural policy measures. to return to higher growth rates, innovations and digitalisation will be important factors. they provide opportunities for our two countries to increase efficiency and develop new business models. as a central bank, we are committed to ensuring price stability. this is our best contribution to favourable economic conditions that in turn can be conducive to the free flow of goods, services and ideas. indeed, price stability plays a key role. it is important because it preserves the currency's purchasing power, reduces economic uncertainty and creates a stable environment for investment and trade. price stability also makes an important contribution to political stability. as a contrast, global fragmentation increases the likelihood of future price pressures. if such pressures result in high inflation, this is a heavy burden, especially on low - and middle - income households. and it can lead to political instability – not least by influencing voter preferences. 3 aim for resilience far - sighted policies aim at resilience. during the pandemic, businesses and organisations have learned to become more flexible and resilient. they have adjusted their business models to better respond to unpredictable events, without abandoning their international focus. thus, as seen in the covid example, resilience means a combination of strengthening our economies and preserving openness and international interconnectedness. and preserving a " level - playing field " in global trade where possible. let us continue to build on this foundation together. 4 conclusion ladies and gentlemen, i firmly believe that we have much to learn from each other and can greatly benefit from mutual exchange. at the same time our corporates are not only business partners but in part also competitors. that being said, we have to find a way to ensure competition is fair and beneficial for both sides. by combining our strengths we can create a sustainable and successful future together. our task in the context of constantly changing global conditions is to address challenges – together! – and to identify potential and opportunities for a sustainable and resilient future. 3 / 4 bis - central bankers'speeches to this end, the common dialogue – like our's today – is invaluable! 1 the people's republic of china is again germany's main trading partner - german federal statistical office ( destatis. de ) 2 bundesbank monatsbericht januar 2024. 4 / 4 bis - central bankers'speeches