##ps for the clearing of financial derivatives. around 80 % of interest rate swaps denominated in euro are still cleared in the uk ; this situation cannot continue forever. for fear of market disruption, the commission recently decided to extend equivalence for uk ccps until end june 2025. however, commissioner mairead mcguinness made it crystal - clear that this extension was the last one, and that the three next years were to be used specifically for a rebalancing of clearing to the eu. i could not agree more. the public consultation launched by the commission is a unique opportunity to put forward constructive proposals, on both sides of the coin : on the demand side, through well - calibrated prudential incentives for market participants ; and on the supply side, notably with the extension of the scope of clearing, for products and entities. we have a collective responsibility to reduce systemic risk and we have to act now. as a conclusion, let me take a take inspiration from the recent adam mc kay and leonardo di caprio movie “ don ’ t look up ” to provide a broader perspective. we may be coming out of a storm called covid, which has heavily disturbed our traditional landmarks and consumed a lot of our energy. we may be facing another crisis in geopolitics. but we must not forget to “ look up ” at the stars to see where we are in our journey and to remember where we are going … the two “ great transformations ” ahead of us require a financing union in europe. the time to act is now. i thank you for your attention. 4 / 4 bis central bankers'speeches

francois villeroy de galhau : looking up to achieve a financing union speech by mr francois villeroy de galhau, governor of the bank of france and chair of the board of directors of the bank for international settlements, at the eurofi high level seminar 2022, paris, 23 february 2022. * * * ladies and gentlemen, it is a great pleasure for me to open this edition of eurofi today in paris, and i extend my warmest thanks to didier cahen and david wright for their tireless efforts that allow us to gather in this beautiful hotel du collectionneur. today i will indeed be speaking about a collection – not of fine arts, but rather of national banking and financial systems. unfortunately, such a collection is nothing to rejoice about, it is rather an achilles heel. but let me start with a few words about ukraine. we are obviously monitoring closely the geopolitical developments, and their possible economic and financial implications. let me already stress that the direct exposure of french financial institutions to russia remains limited, but the ssm called all european banks to enhanced vigilance on cyber risks. we will assess in our governing council in march the more indirect consequences on inflation and growth, and we will be facts driven : more than ever, optionality – about the right monetary stance – and flexibility – to guarantee the right monetary transmission – are the two names of the game for our policy. a few days ago, on 7 february, we celebrated the thirtieth birthday of the european union and of the maastricht treaty. i was personally present during the signature of this treaty, which promoted “ the strengthening of economic and monetary union, ultimately including a single currency ”. we have successfully established a monetary eurosystem, however a real financial eurosystem must now develop. let me therefore share some proposals on the banking union and the capital markets union ( cmu ), which are the two cornerstones for such a financial eurosystem. we are all aware the banking union is for 19 countries, and tomorrow 21, while the cmu is for 27. but allow me to mix them today with a common core – the euro area – and a common purpose – the right funding of our economies. i will quote two thriller books today. you may rightly think of the postman always rings twice : andrea enria and myself already conveyed this message quite plainly regarding the banking union during the last eurofi session in september.