. finally, well, we will have the discussion about a fiscal instrument in order to confront potential asymmetric shocks in the euro zone. from a political standpoint the last european council decided that we should start with this fiscal facility. i think that is a first step. normally long trips start with the first step. we have taken the first step in order to have this fiscal facility. i'm thinking that is something that should complement monetary policy in order to have all these instruments to confront shocks, to confront a crisis, because a crisis will arrive for sure. given the different approaches that the member states are having, do you feel that a two speed, a multi - speed europe is a risk, a possibility, an inevitability? i do not see it now. i think that we should work in parallel. i hope that we should create the political will in every country in order to work together and to advance and make progress together. i believe that a single speed is much better than a multi - speed euro zone or european union. 3 / 3 bis central bankers'speeches

in order to safeguard the stability of the euro area as a whole – could inject capital directly into banks, this would also help to break the bank - sovereign loop. of course, such support must come with strong conditionality and control. let me note that depending on its design, the financial union could introduce additional elements of risk - sharing among euro area countries, and as such, it should be subject to strong democratic accountability and control at national and european level. most importantly, all euro area countries need to return to sound macroeconomic and fiscal positions. this may sound obvious, but unfortunately it has threatened to slip out of focus in some of the recent discussions. there has been substantial progress towards consolidating the foundations of emu. fiscal rules are being strengthened, and almost all european governments have signed a treaty that contains the so - called fiscal compact, which mandates all contracting parties to introduce legally enforceable debt brakes in their countries. 3 the reformed governance framework also provides new tools to improve budgetary surveillance as well as to prevent and address macroeconomic imbalances – the “ six - pack ” reforms and the “ two - pack ” legislation are examples and should be forcefully implemented. looking ahead, a path towards a fiscal union, based on a principle of responsibility and with proper control and accountability, would provide a sound “ fiscal pillar ” on which the single currency could safely rest. some have suggested that it could provide a basis for the introduction of euro area - wide funding instruments with joint and several liabilities. such instruments could contribute to a smooth functioning of a stability - oriented monetary policy, protecting member states from temporary tensions arising in some parts of the union and offsetting the emergence of selffulfilling expectations leading to bad equilibriums. there is an important caveat, however. in his 1790 report on public credit, alexander hamilton wished “ to see incorporated, as a fundamental maxim in the system of public credit of the united states, that the creation of debt should always be accompanied with the means of its extinguishment ”. common funding instruments would require shared decision making on national debts and deficits and probably joint control on fiscal expenditures and taxation. they can only result from further political integration ; they cannot precede it. likewise, and importantly, a fiscal union can only come about once the participating countries have successfully restored domestic fiscal sustainability and solidified the conditions for long - term growth. joint debt issuance cannot be a substitute for putting national fiscal houses in order and