financial markets, allowing domestic and international investors to allocate economic resources more efficiently. and it lowers the cost of global capital market financing for euro area borrowers, including corporations, financial institutions and public entities, thus benefiting firms, households and taxpayers. of course, the international role of the euro also brings challenges, such as greater exposure to global foreign financial developments and potential changes to the monetary policy transmission process. the international benefits of sharing a currency go beyond the monetary sphere. in a world with deep economic and financial interlinkages, international cooperation is essential and we can more effectively promote european ideas and interests by speaking together. indeed, the euro area ’ s voice has been crucial in strengthening the international financial regulatory framework after the global financial crisis. today, the single supervisory mechanism is the largest banking supervisor globally and successfully contributes to shaping the international supervisory framework. since the global financial and euro area debt crises, however, the euro ’ s international role seems to have gradually eroded. while its importance as the currency of invoice for international trade transactions has remained broadly stable, its role in global foreign reserves and global debt markets has declined. this decline is a symptom of the fault lines in emu exposed by the crises. concerns about the resilience of the emu architecture and about financial fragmentation underpinned this erosion. indeed, stability, financial depth and liquidity are among the key determinants of an international currency. european policymakers are now paying closer attention and various calls have been made in recent months for the euro to assume a stronger international role. the euro summit of 2 / 4 bis central bankers'speeches december 2018 encouraged work to be taken forward to this end. the international role of the euro is supported by the pursuit of sound economic policies in the euro area and a deeper and more complete emu. and this requires further efforts along the path of deeper integration. completing the economic and monetary union the past 20 years have revealed beyond doubt how challenging ensuring economic prosperity and stability can be. this was true both inside and outside the euro area. nonetheless, these years also demonstrated that such a shared challenge is best faced collectively. to realise in full the benefits of the euro, we need to have the same components that made the euro a reality in 1999. on the one hand, we need national reforms to promote sustainable economic convergence. under any monetary system, higher growth potential can only be achieved through continuous reform efforts. as the convergence process is primarily driven by structural factors,

this is a key responsibility of member states. on the other hand, europe can make a difference by supporting and facilitating such reform efforts. our togetherness represents a unique competitive advantage, and we should capitalise on this. first, we can build on the synergies between emu and the single market. the single market is indeed one of the most powerful tools we have to unlock the mechanisms that will raise productivity. in particular, a genuine capital markets union ( cmu ) would not only ease and diversify access to funds for households and firms, thus fostering investment and innovation. it would also enable risk diversification and thus compensate for temporary drops in activity locally – the so called private risk - sharing –, thereby reinforcing the overall resilience of emu. second, it is essential to complete the projects that we initiated during the crisis, namely the banking union. together with cmu, a complete banking union would deliver meaningful private risk sharing that is currently lacking in the euro area in comparison to the us. but private risk sharing, to be effective, needs to be supported by other policies. we should thus rekindle trust in our economic and fiscal framework, by making it more effective in ensuring sound policy making at national level. these actions can also be further supported at the european level by the recent decisions to launch an instrument for convergence and competitiveness for the euro area. to tackle future cyclical crises, the two layers of protection against shocks – the diversification of risk through the private financial system on the one hand, and public countercyclical support through fiscal instruments at the national and european levels on the other – need to interact in a complete and efficient manner. achieving these reforms is not idealistic, nor utopian if we work together. and at the euro summit in december, leaders renewed their political commitment to strengthen emu. if we want to realise in full the benefits of the euro, we need to capitalise on this commitment and translate it into concrete policy actions. conclusion mr chairman, honourable members of the economic and monetary affairs committee, 3 / 4 bis central bankers'speeches i have used the word “ together ” several times today. as this is the last time that we will be together in this legislative term, let me add a few words to you personally. i would like to thank you all for the role that this committee has played over the past years. in my first hearing here, i remember saying that was my first exercise in democratic