’ s disposal in the event of future adverse shocks. moreover, a treaty change could allow for a review of which responsibilities are national and which are european. the envisaged conference on the future of europe offers a chance to obtain people ’ s views and input on these issues. this could help structure future debates and form a good example of how 3 / 4 bis central bankers'speeches to enhance democratic accountability. such debates should touch on issues that are especially important to people ’ s lives, such as internal and external dimensions of security, a common border policy and a more responsive foreign policy. conclusion let me conclude. werner was aware that some europeanisation of fiscal policy was an important element for the currency union. in response to the covid - 19 crisis, such europeanisation has reached its peak in common debt issuance. such crisis measures are justified by the pandemic, but they should not be taken beyond crisis times without parallel deepening of the institutional functioning of democracy at the union level. what we can and should take beyond the crisis are our common principles that have served us well, such as a common approach to common problems. and we should use this opportunity for a clearer delineation of responsibilities and competences among the different governance layers in our supranational community. jean monnet famously stated “ europe will be forged in crises and will be the sum of the solutions adopted for those crises. ” let ’ s keep striving to ensure that the legacy of this crisis is a positive one. 4 / 4 bis central bankers'speeches

in oil and other commodity prices from the peaks seen in mid - july suggest some moderation in external pressures, provided that these declines are sustained. however oil and food prices remain significantly high and above their average 2007 levels, being the main driving forces for inflation in most regions of the world. 2. the persistent financial market turbulences and elevated systemic risk has led to tighter global financing standards as banks are unwinding excessive leverage built up during the credit bubble. while financial market conditions seemed to stabilise somewhat in the second quarter, doubts about the health of some big institutions together with further write - downs by banks and the failure of a mortgage lender led to a renewed rise in global risk aversion. 3. the adjustments in the housing markets of several advanced economies are ongoing and weigh on wealth. there is also the risk of housing downturns becoming more protracted and spreading to further countries. • finally, the suspension of the doha round poses downside risks to global trade and economic activity. all these factors have weighed on global growth for some time now. however, from a longterm perspective global growth is still relatively contained compared with previous episodes. in particular, resilient growth in asia and in the oil - exporting countries has bolstered global growth. for the second half of the year, however, retreating leading indicators and survey measures suggest a somewhat more pronounced global slowdown. in particular, global economic prospects continue to be shaped by the us economic outlook, which is subject to high uncertainty in view of the ongoing corrections in both the financial and housing markets. however, as already said, more worryingly, global inflationary pressures have intensified and remain a cause of concern for the world economy. while the recent decline in commodity prices might offer some relief, tight commodity market conditions pose price risks clearly to the upside. in july headline consumer price inflation in the advanced economies rose to 3. 8 %, which is the highest level since march 2000. amid rising inflation expectations, signs of second - round effects are mounting in a number of economies, which constitute a great challenge for monetary policy. in emerging market economies the inflation rate has increased to 8. 4 % in july. euro area : economic analysis turning to the euro area, gdp grew at a robust 0. 7 % in the first quarter of 2008. in part that reflected temporary factors, notably the unusually mild winter in many regions of the euro area which boosted construction activity early in the year. gdp growth weakened considerably