20 % of their spending to digitalisation and around 40 % to the energy transition and green infrastructure. 7 conclusion martin luther king jr. famously said that “ the arc of the moral universe is long, but it bends towards justice ”. i believe that we can say something similar about the arc of progress. europe moves forward in stops and starts. it often learns lessons the hard way. but its arc bends towards a stronger and more united europe for all citizens. the common currency 3 / 4 bis central bankers'speeches reflects this continued progress, with support for the euro at its highest level on record at 80 %, up from 66 % a decade ago. 8 this should give us hope as we look to the future. and it should give us confidence that, even when europe may seem divided or lacking in direction, there is a thread guiding us forwards. over my career, i have had the privilege to watch this process unfold up close, to share in its highs and lows. i have been lucky enough to see it from three different perspectives – national, european and global. and i am honoured to continue working to take europe forwards. i am very pleased to see the contributions of the european central bank recognised through my acceptance of this prize. thank you. 1 common equity tier 1. european banking authority ( 2020 ), “ basel iii monitoring exercise – results based on data as of 31 december 2019 ”, december. 2 lagarde, c. ( 2019 ), “ the future of the euro area economy ”, speech at the frankfurt european banking congress, 22 november. 3 as measured by the change in the cyclically - adjusted primary balance, european commission ( 2021 ), “ european economic forecast ” – spring 2021 4 mckinsey ( 2021 ), “ the future of work after covid - 19 ”. 5 bloom, n. et al. ( 2012 ), “ really uncertain business cycles ”, nber working paper series, no 18245, national bureau of economic research, july. 6 batini, n., di serio, m., fragetta, m., melina, g. and waldron, a. ( 2021 ), “ building back better : how big are green spending multipliers? ”, imf working papers, no 87, international monetary fund, march. 7 darvas, z. and tagliapietra, s. ( 2021 ), “ setting europe ’ s economic recovery in motion : a first look

rating agencies play in structured credit markets. the growing complexity of instruments has clearly induced some investors to overly rely on ratings. this is the more risky as ratings in structured finance are not yet as much tested as those of corporate issuers. some investors may also have misinterpreted the risk dimensions covered by a rating. against this background there is probably scope to improve the information content of ratings and to make the monitoring process more transparent. it also needs to be investigated further to what extent conflicts of interest may have arisen for rating agencies in their credit risk assessment of structured credit instruments. several international fora are currently looking at those issues. fourth, the turmoil has revealed some challenges for the liquidity management of banks. banks, including those in continental europe, have increasingly relied on secured funding, both via securitisation and off - balance sheet vehicles. this has rendered them more vulnerable to a sudden disruption of structured credit markets. let me recall that the regulatory framework requires eu banks to have policies and procedures for the measurement and management of net funding positions on an ongoing and forward - looking basis and have in place contingency funding plans. in this context, recent events have demonstrated that banks need to further strengthen their liquidity risk stress - tests, encompassing for example scenarios such as a protracted closure of a broad range of securitisation markets and the drawing of contingent liquidity obligations by commercial paper programmes. moreover, those elements should also be incorporated into their contingency funding plans. the ecb, together with the escb banking supervision committee, is carrying out work on this important topic. indeed, the current turmoil has underscored the importance of robust liquidity management by banks, as well as the need for supervisory approaches which keep pace with structural market developments. many initiatives with a view to addressing issues and risks arising from the recent financial market turbulence that go into the right direction have already been launched, both at the international level, namely by the financial stability forum, and at the eu level, with the ecofin agreeing to a roadmap for action by 2008, and also by the private sector. they must be pursued now with even stronger impetus. in this respect, co - ordination at the global level should be ensured. in closely interlinked financial markets, any policy measure should be agreed to and consistently applied at the international level. fifth, in the same vein, there is a need to reflect carefully on the “ originate - anddistribute ”