, fully, comprehensively the decisions taken by the european heads of state and government on 21 july. 4. are you talking about the decisions taken by the european council in july, the ratification of which in some countries, such as germany, is proceeding very slowly? i will not mention any particular country. all 17 countries are called upon to implement all the decisions taken by the heads of state and government. this comprehensive and quick implementation is important, including for the confidence of our fellow citizens. 5. so the idea of european bonds doesn ’ t attract you? some people are convinced that in the current circumstances we need to consider the most innovative and ambitious solutions. as i already said, it ’ s important to note that the efsf is financed through the issuance of bonds guaranteed by the european states. the governing council of the ecb considers that it is important that individual countries feel responsible for their own fiscal policies. at the bis central bankers ’ speeches same time, the council judges it as essential that peer surveillance is conducted in the most rigorous way. since the inception of the euro, we have called for a major strengthening of collegial governance. and long before the crisis, in 2004 and 2005, we defended the stability and growth pact when it was attacked by the big countries of the euro area. the european council, commission and parliament are working on the development of six draft secondary legislation texts to reinforce supervision of economic, fiscal and competitiveness policies. we are in the final stages of negotiations and i urge the parties to reach an agreement as quickly as possible. 6. a few weeks ago, in aachen on the occasion of the charlemagne prize, you launched the idea of a finance minister for europe. how realistic is this proposal? when do you think europe can become a fully fledged federation? i said that not for tomorrow but perhaps for the day after tomorrow the european union could be a confederation of a new type, not like the united states of america, but with a government of the confederation, including a finance minister. but this depends on our people. the people of europe will decide what will be the future of their history. 7. over the past ten years, the ecb has succeeded in maintaining price stability in the euro area. but low inflation has not been enough to avoid the turbulence of these years. in your view, is it enough to monitor inflation? doesn ’ t the crisis perhaps show that, in addition to looking at the euro area as a whole, the ec

’ s monetary policy implementation system : does the evolving environment support maintaining a floor system? ” bank of canada staff discussion paper ( forthcoming ). 8 see d. lopez - salido and a. vissing - jorgenson, “ reserve demand and quantitative tightening, ” federal reserve board ( november 2022 ). 9 this is to say that, in ordinary times, we routinely buy assets to offset the ongoing growth of currency in circulation. more specifically, once we are at the steady - state level, we will start buying goc bonds and treasury bills again. we will also resume our regular term repo operations. - 8category / categorie : protected b / protege b quantitative tightening is happening, but it will take time to run its course. conclusion it ’ s time for me to wrap up. the covid - 19 pandemic was certainly unprecedented, and it merited a strong response from the bank. let me re - emphasize that this level and type of intervention should not be expected with every episode of market turbulence in the future. we will do some things differently next time if the need arises. this includes putting in place measures to further mitigate moral hazard. after the global financial crisis, we learned a lot by carefully reviewing the effectiveness of our response. that work helped inform our response to the pandemic, just as the work we are doing now will help us respond better to future crises. and it ’ s important that we remain nimble in response to the uncertain times we ’ re in. in the past month alone we ’ ve seen important developments — headline inflation has dropped, and the risk appetite in global markets has pulled back, partly reflecting the increased stress in global banking that i noted at the beginning of my speech. at the same time, the labour market in canada remains tight and this is putting upward pressure on many services prices. we continue to expect consumer price index ( cpi ) inflation to come down in the months ahead, but we will need to see further slowing in core inflation to get cpi inflation back to the 2 % target. we are also keeping a close eye on stresses to global banking systems as we turn our attention to the april monetary policy report. we will consider the macroeconomic impact of this evolving situation as we put together our next projection. we ’ ll be looking specifically at potential spillovers into the real economy to the extent that financial conditions tighten and there are broader confidence effects. to conclude, we will continue learning from our actions