households have had some income growth during these past five years, and these households may have grown accustomed to higher income levels. they may face an adjustment as their debt - service ratio rises once again, with consequences for their consumption spending. of course, this issue is most important for highly indebted households. we also know that the jump in payments will be greatest for those who took out mortgages when interest rates were at their lowest levels, in 2015 and 2016, so the mortgage renewal process is likely to weigh on the economy more in 2020 and 2021. all that being said, governing council concluded that the economy should be resilient to higher interest rates, provided that labour income continues to grow. the biggest issue on the table was trade tensions. as discussed before, uncertainty around the future of the north american free trade agreement has caused some companies to delay investment spending or to move their investments to the united states. this channel was identified and captured in our projection some time ago. the recent imposition by the us government of actual tariffs on canadian exports has made the situation more concrete. in the projections we are presenting today, we have added more negative judgment to our business investment forecast in recognition of this. we have also incorporated the effects of the us tariffs on steel and aluminum, and the various countermeasures implemented around the world. box 2 1 / 2 bis central bankers'speeches in the mpr gives a flavour of the complex effects such actions will have on the economy. let me summarize briefly. a us company importing canadian steel must now pay a 25 per cent tariff. they may instead buy steel made in the united states or in some other country. or, if no obvious substitutes are available, they may just pay the higher price. or, the canadian company may offer to reduce its price in order to absorb some of the tariff ’ s impact. or, it may look to other markets to sell its products. the response of companies will depend on how long they think the tariffs might be in place — for example, it appears that if nafta is successfully renegotiated, those tariffs would no longer be in effect. the point is, the outcome depends on individual reactions, which depend on the circumstances. and then there are countermeasures. canada has imposed a 25 per cent tariff on steel imported from the united states. this would seem to level the playing field, but many of the same complexities enter the analysis. all things considered, our

christine lagarde : 20th anniversary of the entry into circulation of euro banknotes and coins speech by ms christine lagarde, president of the european central bank, at the plenary session of the european parliament, strasbourg, 14 february 2022. * * * the introduction of euro banknotes and coins in 2002 was a milestone in european history, as it put a tangible sign of european integration in the pockets of over 300 million citizens in 12 countries. it was a historic event at a global level, as it represented – and still does – the world ’ s largest ever monetary changeover. since 2002, a further seven countries have adopted the euro, which has become an integral part of our european identity, uniting us across national borders, languages and cultures. sharing a currency is more than simply using the same means of payment ; it is being part of a common endeavour. this feeling of shared identity is well recognised by our fellow citizens. when asked what the european union means to them, the single currency was second on the list of things they thought of most1. the euro has simplified the lives of european citizens and produced tangible economic benefits that we sometimes take for granted. it has supported the free movement of people, goods and services and allowed european citizens to work, study and travel in 19 different member states without worrying about exchanging money. the euro has also made it easier for businesses to trade across borders. it has facilitated closer economic ties between countries and allowed small and medium - sized enterprises to participate in cross - border value chains more easily. from 1990 to 2002, trade between the soon - to - be 19 countries of the euro area increased by less than 5 %, whereas since the introduction of the single currency it has grown by almost 200 % 2. by deepening the integration among our economies, the euro has also strengthened europe ’ s role and autonomy. it has quickly become the second most important currency in the world and is increasingly being used in key markets for our future growth. indeed, in 2021 about half of total green bond issuance around the world was denominated in euros3. the european central bank is the custodian of the euro. it is our job to keep banknotes secure and safeguard the supply of euro cash to the economy4, as well as investigating innovative and complementary forms of payment. last year, we launched the digital euro project. 5 we will investigate how a digital euro could offer a convenient, cost - free means of payment, allowing people to pay