, so as to ensure that the framework of reference is stable for small investors, institutional investors and companies. measures to increase protections for savers and investors are being taken alongside those to expand the range of financial instruments offered by firms. fairness and transparency in dealings between intermediaries and customers in and of themselves contribute to attracting investment. while on the one hand, we have on more than one occasion emphasized how important it is that players in the asset management industry conduct themselves in full compliance, and not just formally, with the laws and regulations, we are equally aware of the critical role played by the various oversight authorities that are responsible in this area. through the creation of the directorate general for consumer protection and financial education, the bank of italy has laid the foundations for strengthening its supervision to guarantee transparency and fairness in dealings between intermediaries and customers in the supply of banking products and payment services, to ensure more effective support for the industry ’ s alternative dispute resolution body, namely the banking and financial ombudsman, and to expand the financial education programmes targeting students and adults. these are initiatives designed not only to improve the public ’ s ability to invest their savings efficiently, but also to raise awareness of the risks associated with the different financial instruments. as regards crypto - assets, the bank of italy is dedicated to limiting the risks that could arise from an uncontrolled spread of these instruments, whose market capitalization at global level tripled in 2021, reaching $ 2, 500 billion. we have informed the public about the dangers of these digital assets whose value is intrinsically unstable and that can also facilitate illegal transactions. for assets that, instead, seek to maintain a stable value over time ( known as ‘ stablecoins ’ ) and that, 3 / 7 bis central bankers'speeches given their characteristics, could be used to make payments, we are contributing to the discussions on defining a european regulatory framework that envisages, among other things, redemption rights and rules for ensuring the issuer ’ s ability to satisfy requests for reimbursement without having to make sudden sales of securities. we have also contributed to defining the ten recommendations on these assets adopted by the financial stability board ( fsb ) and recognized by the group of seven ( g7 ) regarding the regulatory and supervisory implications. we are fully committed, in forums for international cooperation, to guaranteeing that innovation in private digital payments is secure ; within the context of the g7, we have also reiterated that no stablecoin

reason, health and welfare could also require an extension of the services provided. if italy decides to maintain or extend the perimeter of public intervention, it will be necessary to ensure that such measures have adequate coverage, without financing permanent increases in deficit spending, as has instead happened in the past. financing conditions, which are expected to remain relaxed, together with greater long - term growth, may lead to a decrease in the debt burden. it is not possible, however, to rely solely on a cost of debt maintained indefinitely at the current exceptionally low levels, which also reflect the extraordinarily expansionary stance of monetary policy. to prevent the instability risks experienced in the past from resurfacing, once the crisis is over, it will be necessary to step up the pace of recovery, including by rebuilding adequate primary surpluses. * * * the european union and the european central bank have countered the crisis with exceptional means and instruments, also facilitating the use of enormous national budget resources by individual countries. this was a far more incisive response than the insufficient one provided during the global financial crisis and above all during the subsequent sovereign debt crisis. the pandemic has nevertheless further highlighted the limits of the current european arrangements, which do not provide for a common fiscal capacity. a sufficiently broad capacity, with the possibility of borrowing to finance investment projects or of activating social safety nets and common welfare programmes, would allow a european fiscal policy to stand alongside monetary policy action in countering wide - ranging economic shocks. european debt would also be a supranational financial instrument with a high credit rating, which would facilitate the diversification of intermediaries ’ portfolios and the integration of european capital markets, thereby improving the effectiveness of monetary policy. in order to swiftly guarantee liquidity and market depth for this new instrument, there could be a pooling of part of the debts of individual countries by means of a redemption fund that would withdraw national instruments by issuing european securities. this part should at least include the debt contracted by all member countries over the last two years in order to cope with the effects of the pandemic. fears that this kind of mechanism could lead to systematic transfers of resources to more indebted countries are understandable, but they can be dispelled by the adoption of adequate technical measures. the urgency of the times enabled us to overcome our fears and resistance during the pandemic. the ngeu programme is unprecedented in both size and purpose ; it is financed by eu debt