state of mind in which we have to be to face the challenges of our disruptive world. we cannot stop the course of phenomemons such as digital transformation or climate change. but we can roll up our sleeves to tackle them – together and across continents. this is the purpose of such a forum today. thank you for your attention. 1 rostagno, m., altavilla, c., carboni, g., lemke, w., motto, r., saint - guilhem, a. and yiangou, j., “ a tale of two decades : the ecb ’ s monetary policy at 20 ”, 2019, forthcoming. 2 speech by francois villeroy de galhau, governor of the bank of france, at the conference of the chair bank of france / paris school of economics, at the paris school of economics, paris, 24 september 2019. 3 see article 127 of the tfeu : “ without prejudice to the objective of price stability, the escb shall support the general economic policies in the union with a view to contributing to the achievement of the objectives of the union as laid down in article 3 of the treaty on european union ”. these objectives include “ the sustainable development of europe “ and “ a high level of protection and improvement of the quality of the environment ”. 4 princess mononoke film ( 1997 ). 3 / 3 bis central bankers'speeches

extended the monetary toolkit. as a result, it may now sometimes make sense to approach monetary policy decisions in order to deliver the monetary stance called for by our price stability objective while choosing the appropriate combination of instruments that minimize risks to financial stability. such a soft coordination is more promising than a strict separation. lastly, how should we incorporate climate change in our monetary policy analysis? it affects price stability in the long run, and the value of our collateral, notwithstanding the fact that “ a high level of protection and improvement of the quality of the environment ” 3 belongs to our secondary objectives in the eu treaty. speaking about financial stability, let me add a few words on basel iii. the agreement reached in december 2017 is the finalisation of an unprecedented and fruitful regulatory effort that began in 2009. i strongly reiterate that : it is a fair and reasonable compromise. the us had to accept the permanent recognition of internal models elsewhere, although their banks don ’ t use them ; and both europe and japan had to accept an increased comparability of these internal models, leading to some increase in their capital requirements. some people, starting with banks themselves, are now contesting the agreement. i would like to make a clear pledge : the basel iii agreement is intended to apply everywhere in a consistent manner, including of course in the united states. those anywhere who would recommend not transposing basel 3 would give in to the temptation to forget, ten years after the great financial crisis ; they would take the responsibility of increasing financial stability risks, at a time when these risks are already significant. that said, rest assured that we will insist on a fair and reasonable implementation in europe, taking into account the specificities of the european banking sector in order to avoid undue impact on capital requirements. ii. the french economy is resilient, with growth expected at 1. 3 % this year despite this darker context, the french economy is resilient, with growth expected at 1. 3 % this year, three times higher than the german one. this expansion is being sustained by a robust internal demand. real household income per capita is accelerating sharply ( increasing by around 2 % in 2019 ) at its fastest pace since 2007, due to the fiscal stimulus and to a larger extent to the strength of labour income – 1 million jobs have been created over the past four years. many important reforms have already been adopted. of course, much remains to be done to tackle structural unemployment, which is still too high