pooling sovereignty on issues of direct common interest became the new basis for cooperation between the european nations. at the time such a project seemed bold and optimistic – just as calling for further, deeper integration seems bold and optimistic today. but our founders were right. europe has delivered peace, prosperity and political stability for a period of time that has no precedents in its modern history. this year marks the 60th anniversary of the treaty of rome that created the european union and the 25th anniversary of the maastricht treaty that created the monetary union. further progress is needed. the institutional architecture of the economic and monetary union remains incomplete in a number of aspects. the crisis has exposed structural weaknesses in our construction and has forced us to address them. the repair has started with the creation of 1 / 2 bis central bankers'speeches the banking union. but the work is far from over and the challenges we face go beyond economic and monetary union. they pertain to security, migration, defence, and generally all those challenges that can be addressed only by pooling sovereignty. and these challenges are greater than in the past. today we can sense a rising wave of energy in demanding joint european action. the european union and the euro always commanded the support of the majority of european citizens, but, often, it was only the vocal opposition that was heard. now this silent majority has regained its voice, its pride, and its self - confidence. only by working together can the nations of europe overcome these challenges. the opportunity for progress is real. values and judgement lie at the heart of all our undertakings. but they need to be supported by continuing research, ever increasing knowledge, and uncompromising examination of facts. this was true in addressing the great financial crisis, designing and implementing policies that improve the world economy and building institutions that deliver peace and prosperity in europe. but it is also true in all the fields represented today by my fellow recipients. that is why we must be grateful to all places of knowledge, and today to the university of tel aviv. thank you once more, not only for the honour that you are bestowing upon us, but also for your ongoing contribution to our common good. 2 / 2 bis central bankers'speeches

profits increase by more than expected. upside risks to inflation also stem from the heightened geopolitical tensions, which could push energy prices and freight costs higher in the near term and disrupt global trade. moreover, extreme weather events, and the unfolding climate crisis more broadly, could drive up food prices by more than expected. by contrast, inflation may surprise on the downside if low confidence and concerns about geopolitical events prevent consumption and investment from recovering as fast as expected, if monetary policy dampens demand more than expected, or if the economic environment in the rest of the world worsens unexpectedly. greater friction in global trade would make the euro area inflation outlook more uncertain. financial and monetary conditions market interest rates in the euro area have declined further since our october meeting, reflecting the perceived worsening of the economic outlook. although financing conditions remain restrictive, our interest rate cuts are gradually making it less expensive for firms and households to borrow. the average interest rate on new loans to firms was 4. 7 per cent in october, more than half a percentage point below its peak a year earlier. the cost of issuing market - based debt has fallen by more than a percentage point since its peak. the average rate on new mortgages, at 3. 6 per cent in october, is about half a percentage point lower than at its highest point in 2023, even though the average rate on the outstanding stock of mortgages is still set to rise. 3 / 4 bis - central bankers'speeches bank lending to firms has gradually picked up from low levels, and increased by 1. 2 per cent in october compared with a year earlier. debt securities issued by firms were up 3. 1 % in annual terms, which was similar to the increase in the previous few months. mortgage lending continued to rise gradually in october, with an annual growth rate of 0. 8 per cent. in line with our monetary policy strategy, the governing council thoroughly assessed the links between monetary policy and financial stability. euro area banks remain resilient and there are few signs of financial market stress. financial stability risks nonetheless remain elevated. macroprudential policy remains the first line of defence against the build - up of financial vulnerabilities, enhancing resilience and preserving macroprudential space. conclusion the governing council today decided to lower the three key ecb interest rates by 25 basis points. in particular, the decision to lower the deposit facility rate – the rate through which we steer the monetary policy stance – is based