framework governing fair competition by removing the possibility of repeated cycles of competitive devaluations of national currencies. this has eliminated fears of currency manipulation, reduced protectionist temptations and supported the single market. now that devaluation is not an option, euro area countries have to address the real root causes of any competitiveness problems that they may suffer. this is sometimes seen as harsh medicine, since such adjustments may require a subtler form of devaluation through wage restraint. many euro area countries adopted this approach in seeking to restore cost competitiveness following the global financial crisis, and most of those countries have now fully recovered. however, further thought could be given to the question of how european instruments could be developed in order to ensure that social safety nets prevent such adjustments from increasing poverty and undermining long - term growth. this will, contribute to support for the european project in countries undergoing such adjustments – particularly in the context of financial assistance programmes. europe ’ s crisis - fighting toolbox is now greatly improved thanks to the establishment of the european stability mechanism ( esm ), but significant gaps remain in the absence of a grant instrument supporting social safety nets in programme countries or an option to redirect substantial funds from the eu budget. protecting europeans from instability when it comes to goods and services, the eu has contributed hugely to ensuring that economic integration is perceived as safe, and therefore sustainable. regulatory convergence in product and services standards, coupled with a common approach for market surveillance, has underpinned trust in open markets within europe, as has the ability of the eu to respond quickly to emerging threats to consumer protection. for example, the internal market for frozen foods was able to survive the mis - selling scandal of 2013, when horsemeat was sold as beef, in large part because it was met with an improved food labelling and eu - wide inspection regime that restored trust. by contrast, a perceived lack of regulatory convergence between the eu and third countries, especially regarding food safety, is one reason for opposition to preferential trade agreements, such as the ttip. when it comes to finance, until recently, the eu had less to offer in terms of making integration stable. indeed, we learned the hard way that an incomplete monetary union, as well as integrated capital markets without similarly integrated financial regulation and supervision, can create their own forms of instability. but europe has made important progress in this area in recent years. it has established the esm, which has a lending capacity of

frank elderson : the european central bank's monetary policy strategy - delivering our mandate in all circumstances keynote speech by mr frank elderson, member of the executive board of the european central bank and vice - chair of the supervisory board of the ecb, at the european parliament conference on " greening monetary policy in times of soaring inflation ", brussels, 28 september 2022. * * * many thanks for giving me the opportunity to deliver the introductory remarks at this conference on greening monetary policy at a time when inflation is far too high. although i am delivering these remarks remotely, it is always a privilege to speak directly to you, the elected representatives of europe's citizens, the very same citizens – served by eu institutions, including the european central bank – who are united in their commitment to foster peace and stability in their part of the world, even when that very world is subject to significant transformation and upheaval. the pandemic and the war have shaken the environment in which the eu must address the vital challenges that it faces, including the ongoing climate and environmental crises. since russia's unprovoked invasion of ukraine, the global economic outlook has become much less favourable. having said that, the invasion has not shaken the eu's resolve to address the challenges faced. in actual fact, the war and the ensuing energy crisis have only served to increase eu authorities'determination to reduce the bloc's dependence on fossil energy sources. even if in the very near - term the energy crisis may cause an increase in non - gas fossil fuel being used, the likelihood of a timely and orderly transition towards a low - carbon economy consistent with the eu's commitment to the paris agreement has increased. that being said, another record - breaking summer has confirmed that physical risks of climate change and environmental degradation are materialising ever more frequently, which will add to the risk of increased macroeconomic volatility until the transition has been completed. when the boat we all share is rocked to such an extent by external forces, we need to be able to count on internal anchors of stability. the ecb provides one of those crucial internal anchors by pursuing its mandate of maintaining price stability in the euro area as laid down in the treaty on the functioning of the european union. in line with that mandate, our primary concern is, as always, our primary objective : price stability. inflation is currently far too high. the shocks that are hitting the euro area economy have not only led to a turning