these improved economic conditions leading to higher employment rates2 – and the full effects are still materialising. nevertheless, over the past five years structural reform implementation in the euro area has, overall, been sluggish at best. very few reforms identified in the european semester have been substantially implemented. reversing this trend and putting our economy on a higher convergence trajectory is thus a priority. in parallel, national policymakers should make it a priority to build up fiscal buffers to ensure policy space for future downturns. this is particularly important in countries where government debt is high and for which adherence to the stability and growth pact is critical for safeguarding sound fiscal positions. national authorities should therefore be the first ones to step up their efforts. nevertheless, european policies can be a significant catalyst and provide a strong engine for both growth and employment, in various ways. first, there is scope for a better use of the eu ’ s budget. the discussions on the 2021 - 27 multiannual financial framework offer an opportunity to enhance its role in addressing europe ’ s structural challenges, and i welcome the commitment made by leaders at the euro summit to pursue this avenue. second, the single market as an engine for convergence should be used to its fullest potential. this means expanding its reach into new areas, especially those relevant for innovation, such as the digital economy. this is an essential driver of economic progress, benefiting consumers, businesses and the economy as a whole, and will also provide a healthy ecosystem for financial services. it also means increasing the depth of the single market. in the area of financial services, the completion of the banking union and the capital markets union agenda offer an opportunity to do this, and would also provide the cross - border private risk - sharing mechanisms required to underpin the resilience of our economy. 2 / 4 bis central bankers'speeches this is because deeper and more efficient bond and equity markets in europe would allow economies of scale to be achieved and capital to be allocated to its most productive uses at the european level, in line with the single market objectives. in countries such as latvia, this is particularly relevant because capital markets are less developed and intermediation remains largely bank - based, which results in fewer options for financing business start - ups and expansion. 3 creating a genuine banking union where banks operate across borders and diversify their sources of income would also enhance cross - border private risk sharing, with the result that banks would be able to continue lending to the real

barbados competitive, including our regulatory framework and superior infrastructure. we need to take appropriate measures to solidify our position in the canadian market ; we can ’ t afford to lose our strong companies, and those of long standing. however we must begin a deliberate campaign to diversify the countries that use our international financial centre, to reap the benefits of our network of double taxation agreements. that is an enterprise which we need to embark on together, the industry, the community of professionals active in the international financial centre, invest barbados, the ministry of international trade, the financial services commission and the central bank. finally, a word on the role the central bank plays. next month look out for the first issue of our new quarterly ibfs newsletter, to be published on our website. it will update you on all the latest developments affecting our ibfs sector. our contributors are all leading players in the industry, and we invite anyone who might wish to contribute to be in touch with neville pollard at the central bank. on march 15 we plan our second annual ibfs conference, together with fsc and biba. invitations will be sent out shortly. thanks, and i am happy to entertain your questions. bis central bankers ’ speeches