collective effort by our states and societies. this can be posed as a two step process. within each state there must be consensus on the way forward. the body politic and civil society must come to an agreement and understanding on the medium to long - term goals of our countries and the requirements to achieve them. in addition, in the economic sphere there must be meaningful integration through : ( a ) the provision of information on employment opportunities, investment possibilities, and potential markets for goods and services ; and ( b ) the facilitation of linkages between economic sectors, for example, agriculture and tourism, and between the public and private sectors. as a practical matter at the national level there must be a good road network and an efficient internal transportation system, as well as efficient and reasonably priced seaport and airport services and facilities. at the economic union level there must be sectoral production integration which will be facilitated by : bis central bankers ’ speeches efficient and reasonably priced air and sea transportation ; free movement of goods and services, capital and labour ; and effective coordination of economic policies. this process of internal restructuring and integration will usher in a new entity with a different persona and brand, both regionally and internationally. there will be a significant increase in physical size, population and gdp. the new treaty provides for a regional executive with legislative powers, alongside a regional legislative assembly with discussive functions. this is paralleled at the local level by cabinets and the national legislatures. the judiciary has long been regional and will be consolidated through the absorption of the magistracy. the oecs arrangement, due to the existence of a monetary union, already has features of an economic union. it also has regional regulatory functions in the areas of banking, securities markets, telecommunications and civil aviation. there has also been a very high degree of functional co - operation. in response to the global crisis, the oecs and the eccu have also introduced significant institutional arrangements such as : a joint meeting of the authority and the monetary council ; and sub - committees of the council to treat with the management of financial stability issues in banking, insurance, credit unions, and international finance. finally, there are four major areas which are critical to the success of the new entity. the first of these, justice, law and order, is the primary public policy goal of each state and in this case would involve, in my view, the regionalisation of the courts, the police and prison services. transportation is a sine

china. the second factor impeding financial market pricing of climate risk has been the long horizon over which that risk has historically been thought likely to crystallise. financial markets do not have a great track record pricing such longer - term phenomena, particularly when their scale and incidence is also uncertain – a failing to take just one example amongst many, ‘ make my money matter ’ was formed by richard curtis and jo corlett to drive change in pension fund investment : https : / / makemymoneymatter. co. uk /. for a recent discussion of these issues, see https : / / www. bankofengland. co. uk / speech / 2020 / anna - sweeney - moodys - the - resilience - ofinsurers - in - a - changing - climate for a recent central banker ’ s perspective on these points, including the case for establishing a global price for carbon, see the speech by isabel schnabel of the ecb at https : / / www. ecb. europa. eu / press / key / date / 2020 / html / ecb. sp200928 _ 1 ~ 268b0b672f. en. html all speeches are available online at www. bankofengland. co. uk / news / speeches and @ boe _ pressoffice that mark carney has called the ‘ tragedy of the horizon ’. 11 but here, too, things are changing. climate risk doesn ’ t seem so hypothetical or far off to those gazing at red skies over san francisco, fleeing their burning homes in the australian outback, baling out flooded villages in the uk, or contemplating big writedowns in the value of their businesses ( as the boards of ford, vw, bp and shell, to name but a few, have done ). here, a combination of consumer action, government policy, and financial market pricing are bringing the future into the present. the final issue is the most prosaic, but perhaps also the most important from a financial markets perspective – and that is the historic absence of robust measurement. measurement of how much pollution specific companies, their supply chains and consumer markets, produce. and measurement of the extent, and efficacy, of remedial action. while financial performance and risk is measured, and audited, to the nth degree, climate risk has historically been a void. what isn ’ t measured can ’ t be priced, traded or risk managed.