: first, a financial market union that elevates responsibility for supervision of banks to the euro area level. second, a fiscal union that reinforces oversight of budgetary policies at the euro area level and also provides some fiscal capacity to support the functioning of the currency area. third, an economic union with sufficient mechanisms to ensure that countries can achieve sustained prosperity without excessive imbalances. and finally a political union that strengthens the legitimacy of emu among euro area citizens and deepens its political foundations. these four building blocks are mutually consistent and coherent, and should be pursued in parallel. i am looking forward to the work on a roadmap that has started. in my view, three issues deserve particular attention : first, we need to move towards a further sharing of sovereignty in the fiscal, financial and economic domains. there can be no shortcuts in establishing a sound and stable emu. second, emu is an integral part of the treaty. this calls on all relevant bodies and actors to engage constructively on improving its functioning, not only at union but also at national level. to call for an impeccable application of the treaty and at the same time refuse closer union mentioned in article 1 of the treaty is inconsistent, to say the least. third, we need to accompany deeper euro area integration with significant progress on democratic legitimacy and accountability. there is no doubt that you and your colleagues – the members of the european parliament, the directly elected representatives of the citizens of europe – will continue to play a central role in the steps towards political union. thank you for your attention. bis central bankers ’ speeches

diverse information and reporting needs of different supervisory roles. the cockpit will feature advanced, ai - powered capabilities to help supervisors efficiently carry out their core tasks. generating new insights through supervisory analytics 4 / 6 bis - central bankers'speeches supervisory analytics are the second cluster under the technology pillar. these seek to enhance risk assessment by augmenting analytical capabilities and combining structured and unstructured data. there is also a pressing business need to address emerging risks such as climate - related and environmental risks, as well as it and cyber risks. to do so, we must explore new datasets and information sources, including social media. supervisory analytics will give pete and his colleagues new insights which will help them stay ahead of emerging risks and provide more robust and timely risk assessments. we have been working on a tool called delphi which uses natural language processing to integrate market risk - based indicators and information from news items into a single web - based platform with a user - friendly interface. the insights afforded by combining such quantitative and qualitative information mean that supervisors like pete can adequately assess the underlying risks and better understand the real - time risk development affecting individual banks. automating processes by harnessing ai our third and last cluster under the technology pillar concerns process automation and collaboration. think about how the automotive industry is being transformed by smart manufacturing. in a smart factory, machines, devices and systems are interconnected and can communicate with one another, enabling real - time data collection, analysis and decision - making. what can we learn from other industries to become more effective and efficient in our supervision? we are committed to delivering additional breakthrough solutions that use ai – and more specifically generative ai – to simplify and automate workflows, while improving collaboration within european banking supervision. for a while now, we have been harnessing ai and making it available in some of our tools, such as athena, which helps supervisors analyse extensive textual information in various formats and languages, and virtual lab, a platform for ssm - wide digital collaboration as well as code sharing, cloud computing and the development of generative ai ( genai ) capabilities. we are also planning to deploy ai in the afm medusa project which will support our supervisors in drafting, consistency - checking and benchmarking findings and measures. our vision is for supervisors to be increasingly empowered by genai, while remaining engaged in the process since they will be the ones who continue to review and approve work and take the final decisions. this technology will provide