are two sides of the same coin and should be pursued in parallel : they are all essential to protecting the stability of the european banking sector. third, there are challenges related to the fiscal and economic policies of member states that require decisive policy action. fiscal policies should contribute to the economic recovery. at the same time, they should be in full compliance with the requirements of the stability and growth pact. this is important to maintain confidence in the european fiscal framework and in the sustainability of public finances. moreover, countries would benefit from a more growthfriendly composition of fiscal policies. this could involve greater efficiency of public sector services as well as moving to a more growth - friendly tax system. but the ongoing cyclical recovery in the euro area should also be supported by effective structural policies, particularly actions to improve the business environment, including the provision of an adequate public infrastructure. such actions are vital to increase productive investment, boost job creation and raise productivity. if reforms are credible, carefully chosen and well designed, their positive effects can be felt quickly, particularly in the context of our supportive monetary policy stance. fourth and finally, there is still political uncertainty surrounding the european project. this is true in the broader context of our union. a solution that would anchor the united kingdom firmly within the eu while allowing the euro area to integrate further would boost confidence. the economic and monetary union architecture also remains an unfinished construction. citizens and markets are too often unsure about our capacity to act jointly in a spirit of common responsibility. we should prove them wrong. let me conclude and come back to the subject of our debate, your resolution on our annual report for 2014. let me assure you that we are reading this document closely. it reminds us of our duty as a public institution to conduct our business in a transparent and accountable manner. the publication of the diaries of members of the executive board that starts this month is only one example of this. i am now looking forward to the debate and thank you for your attention. bis central bankers ’ speeches

and legal barriers to equity financing. the fiu would promote further convergence of insolvency regimes, as well as standardised and more detailed financial information on european corporates, including smes. in this regard, advantage could be taken of the experience acquired in certain member states – in france for instance, the central bank ’ s expertise in company rating. * * to conclude, let me quote benjamin franklin who, in his essay entitled the way to wealth, gave advice that remains highly topical : “ vessels large may venture more, but little boats should keep near shore ”. in the present situation, savings are certainly closer to large vessels than to little boats. and yet, unlike large vessels, they do not take sufficient reasonable risks. our future will depend on them venturing more to help fill the investment dearth that plagues our economy. i have given you my view on the forms it can take, and i wish you fruitful debates throughout this conference. i 12 - month cumulated current account for the period ending in august 2016. source : ecb. imf weo chapter 4 ‘ private investment : what ’ s the holdup? ’, april 2015. the figures express the average percent deviation from spring 2007 forecasts. iii gfcf in machinery and equipment and intellectual property. iv rd 63 % of french small business owners mention demand as an obstacle to investment. source : bpifrance, ‘ 63 survey of the economic climate for smes ’, may 2016. v matthieu bussiere, laurent ferrara and juliana milovich : ‘ explaining the recent slump in investment : the role of expected demand and uncertainty ’, banque de france wp no. 571 – september 2015. vi ibid. vii the hurdle rate is the internal rate of return that must be cleared for a project to be approved by a company. viii ‘ savings and investment behaviour in the euro area ’, ecb occasional paper series no. 167, january 2016. note : finland, france and italy are not included in the panel. ix ibid. ii