at the euro area level, by adjusting it to national specificities and addressing idiosyncratic financial stability risks while maintaining the harmonious transmission of monetary policy across the euro area. second, macroprudential policy may help to fine tune the overall impact of monetary policy by ensuring that the risk - taking channel is not disproportionate in some specific sectors / countries, in order to prevent systemic risk. let me give you two examples of what we monitor very closely in france : the increase in commercial real estate prices in paris, and the rise in corporate debt. having said this, i do not mean that there is no hierarchy between the two objectives. i call for strong complementarity, not for a merging of objectives. to be more explicit, i consider that a monetary policy strategy that targeted asset prices would be a mistake. as central bankers, we need to avoid confusing economic agents ; our role is to anchor expectations and ensure business continuity. 4. – there are still challenges to be addressed to provide authorities with the necessary policy toolbox for financial stability for it to be more effective, we still face a number of challenges in order to achieve an optimal macroprudential regulatory framework. first, we have to complete the regulatory framework for banks, by finalising the basel iii reform : i strongly wish and hope that we can reach a fair and 3 / 4 bis central bankers'speeches reasonable agreement soon. a revision of the european macroprudential framework is currently underway at the european commission level. moreover, decisive progress should be made to better provide macroprudential authorities with policy tools properly designed to address financial risks beyond banking. market financing, shadow banking, fintechs, pension funds, financial innovations are all part of the scope of macroprudential policy, insofar as they have the potential to pose a financial risk to our economies. our next issue is less the solvency of banks than the liquidity of non - banks. it is also our duty to complete the european regulatory framework with the finalisation of the resolution mechanism to make the functioning of the banking sector smoother – in line with the spirit of the banking union, also enabling the capital market union ( cmu ) to bloom, within the holistic approach of the “ financing union for investment and innovation ” i have suggested. finally, we must ensure that the new regulatory framework is consistently implemented everywhere, and avoid any backtracking outside europe. financial stability is a global common good,

the structure of ontario ’ s economy. but, having outlined the forces that the international experts believe will be at work in the years ahead, let me now spend a few minutes talking about the competitive and structural issues that we face here at home in light of these global forces. experience has taught me that one has to be very careful in trying to predict exactly how structures in an economy are going to evolve. but i think that we can safely predict that the first and most obvious adjustment will be a transformation of manufacturing processes around the world, as low - cost, highly efficient capacity is built in asia. this means tremendous and continuing competitive pressure on industries that have traditionally been mainstays of the ontario economy - automobiles and parts, other transportation equipment, and some areas of light manufacturing. over time, those pressures will increasingly be felt by industries such as steel and heavy manufacturing. there are no signs that these pressures will abate in the years ahead. a second adjustment will be to higher energy costs in the years ahead. this is a major issue for all countries, and poses a problem for canada and ontario, which are energy - intensive by world standards. but energy cost increases and supply concerns are not limited to oil and natural gas. the blackout of august 2003 was a spectacular example of the need to have adequate and failsafe electricity supplies. we know that our electricity supplies are often stretched to the limit. and we know that demand in ontario will continue to grow in the future, and that there is no clear plan to replace the capacity that has been slated for closure. a third adjustment relates to non - energy commodities. strong demand from the booming economies of asia is behind the rise in non - energy commodity prices such as nickel and iron ore. in response, we are seeing significant efforts in countries around the world to find new sources for these commodities and to improve their efficiency in extracting them. this province ’ s commodity producers must take advantage of this healthy environment to boost their own productivity to meet new competitive challenges. fourth, we are in the process of adjusting to the fact that services, once thought to be non - tradable, are increasingly open to worldwide competition because of changes in technology. ontario ’ s serviceproducing industries are facing increased competitive pressure from new suppliers, such as india ’ s burgeoning information technology and business services industries. all indications are that this pattern will continue, and will be repeated in other service industries. perhaps the biggest challenge for ontario ’ s service sector