need to take part in this debate, while taking action will obviously be a decision for political leaders. this is also why our focus should be on the eurozone economic governance. we should not fear different speeds in europe. i am strongly in favor of the uk remaining within the eu ; yet, irrespective of the outcome of the british referendum, the eurozone can and should pursue further integration. the euro crisis has revealed how unprepared we were. the expected dynamics between peer pressure and market discipline did not work, as markets did not believe in the no - bailout principle, and as national authorities did not really accept peer pressure, nor the implementation of the rules. bis central bankers ’ speeches the absence of coordination has a genuine economic cost. it includes the cost of crises and assistance programmes, as well as the impact on growth due to uneven compliance with budgetary rules before the crisis and rigidity of the rules during the crisis. several studies point to a significant cost of non - coordination, in the order of 2 to 5 % of gdp since the crisis. to take the debate forward, three principled choices have to be made : first : making parallel progress on both domestic reforms and european coordination. this is the cornerstone of any french - german agreement : to be fair, the french call for germany to support coordination, and the german doubt about french reforms, have been and are still well - founded. this requires overcoming distrust between countries and putting both aspects under the same umbrella, namely a common institution. second, we must recognize that institutions with a mandate are superior to rules without institutions. to bolster policy consistency and coordination, we admittedly need simpler rules. but they should be supported by strong institutions with discretionary powers. mario draghi pointed out 1 the fundamental difference between a monetary policy institution and fiscal rules, which are exemplified by the track records of the ecb and sgp respectively. third, there is room for an intermediate level of integration, as shown in a simple but illustrative matrix. i would call it “ full coordination of national policies ”, a presently missing link between integration, as we have for monetary policy decision - making, and rule - based surveillance, such as is currently the case for national fiscal policies in europe and which is clearly lacking teeth. speech by mario draghi, president of the ecb, at sz finance day 2015, frankfurt am main, 16 march 2015. bis central bankers ’ speeches to be sure, the highest

christian noyer : the euro area sovereign debt crisis speech by mr christian noyer, governor of the bank of france and chairman of the board of directors of the bank for international settlements, at the bank of france / toulouse school of economics conference “ the euro area sovereign debt crisis ”, paris, 19 december 2011. * * * ladies and gentlemen, it is a great pleasure for me to give the introductory address to this stimulating conference that the banque de france is very pleased to organize jointly with toulouse school of economics. obviously, finding a more topical subject would be difficult, now that euro area ’ s sovereign debt markets are caught in the vortex of the financial turmoil that has been plaguing the world economy for the last four years. this topic is also the one we have chosen for our next financial stability review, to be released next march, with a significant number of contributions stemming from today ’ s presentations. the current crisis is indeed extremely challenging. many complex factors are currently interacting, making policy decision - making particularly difficult. in such a context, academics have a critical role to play to help us clarify the tradeoffs and available options, so that we are better able to make the right choices in real time. this very fact that intellectual inputs from research are a precious resource in times of stress and multi - faceted uncertainty confirms me in my view that central banks ’ investment in economic research, be it in - house or through partnerships with academia, is a very valuable asset. therefore, i also warmly welcome this conference as being one brilliant illustration of the benefits brought by our three years long partnership with toulouse school of economics ( tse ). note however that, while the organization of high - level academic conferences has been an important achievement within this partnership, it is not the only one. indeed, many avenues of fruitful collaboration have developed. two series of regular joint seminars, one on monetary economics, the other on financial stability, and several workshops have notably contributed to strengthen the links between banque - de - france and tse researchers and stimulate the scientific and policy debates. i would also like to take this opportunity to thank jean tirole for his personal involvement in the exchanges with banque de france. last but not least, let me also advertise the new banque de france – tse senior and junior prizes in monetary economics and finance which purpose is to distinguish outstanding contributions by academics. the first prizes will be awarded for the first time on 16 march 2012. in the