the same time, in the context of the forthcoming establishment of a single resolution mechanism in europe, national governments may consider it warranted to make some adjustments to the current institutional settings. indeed, the new european resolution framework will bring a transfer of competences to the single resolution board and, more importantly, a smaller role for taxpayers ’ money as a consequence of the bail - in requirements specified in the brrd and the availability of a resolution fund, which will be fully funded by private contributions from the industry. indeed, if the bail - in clauses in the brrd had been enforceable in 2012 and the srm had been established – including the availability of a fully funded single resolution fund – the banking crisis in spain could have been fully resolved with very limited contribution from the government. then, since taxpayers ’ money is likely to be required only in relatively rare situations, this will strengthen the case for delegating resolution actions and decisions to an independent body, such as the central bank or an ad - hoc agency, as already occurs in many jurisdictions. frankly, i believe that – provided the public budget is not significantly involved – banking resolution should be subject to an institutional setting similar to that of banking supervision, in which delegation to an independent prudential authority has long been successful in most jurisdictions. in any event, based on the experience of spain and other countries, i consider that in all key aspects of the resolution process, the direct involvement of the supervisor is crucial to avoid information gaps, prevent duplications and ensure efficient use of the resources employed to monitor financial institutions. conclusions to conclude, i believe that as resolution authorities we have a very exciting policy agenda in front of us. indeed, it is hard to think of other policy tasks which are so closely related to such a large number of first - order public objectives such as financial stability, the orderly functioning of the capital markets and the integrity of the public finances. yet it is clear that, since resolution policy is arguably in its childhood as a recognised policy area, we still lack something like a comprehensive manual to guide our actions in the field. therefore our decisions must often be taken as if we were exploring an uncharted territory full of legal and economic risks. that is why i think that events like this, which allow competent authorities to exchange experiences and thoughts, are no doubt extremely useful in counteracting our uncertainty until a sufficiently large store of knowledge, if not doctrine, becomes available. i wish to thank antonio carrascosa, mario

if the current expectations for rising interest rates are incorporated, the public debt burden will increase from 2. 2 % of gdp at end - 2021 to 2. 7 % in 2024. against this backdrop, allow me to repeat the recommendation i have made on numerous occasions to adopt a medium - term fiscal strategy. this should include immediately setting out a multi - year fiscal consolidation plan for implementation once the economic impact of the pandemic and of the war in ukraine has been overcome. the plan should have broad a household is deemed to have a high financial burden when its financial expenditure minus financial revenue represents more than 40 % of household income. political consensus and be accompanied by an efficiency review of public spending and the tax system, including all tiers of general government. defining the plan early on would generate greater certainty and trust, which is particularly important against the current backdrop of monetary policy normalisation. the potential impact of the current climate of uncertainty on the banking sector calls for exercising extreme prudence estimating the impact of the current setting on the banking sector ’ s profitability and solvency is more complex. first, the rise in interest rates will mean higher returns on new loans and likewise on existing loans at a floating rate. thus, although the volume of credit will presumably moderate in the current setting, gross income will likely increase, particularly in the near term. however, financing costs will also be pushed up. this includes those relating to debt instruments issued in the financial markets and, albeit to a lesser extent, deposits. the volume of deposits can also be expected to rise owing to their higher remuneration and the climate of uncertainty. second, interest rate rises also immediately translate into a downward revision of the valuations of public and private debt securities in institutions ’ balance sheets. however, these lower valuations are only recognised in institutions ’ income statements when such assets become available for sale, but not if the institutions intend to hold them on their balance sheets to maturity. in this latter case, it should be borne in mind that institutions ’ returns on these securities will be lower than on any new issues that are put into circulation. less than half of spanish institutions ’ debt securities ’ holdings were classified as available for sale at end - 2021. the adverse effects of the current and foreseeable setting – which i have referred to previously – on households ’ and firms ’ ability to meet their financial obligations will chiefly become manifest over a broader horizon ( one or two years forward ). as a result, institutions will have