of the euro notes and coins 2002, has been a tangible reality for all citizens. indeed, its popularity in the 19 eurozone countries is higher than ever. all in all, the euro represents the most ambitious economic integration process the world has witnessed since the end of the second world war. of course, the banking union is now an integral part of the euro project. in fact, like pillars in a building, the bu provides resilience and stability to the whole euro project. as such, the bu is in its own right one of those transformative developments that have contributed to deepening our level of integration. 2 / 5 however, unlike the single market or the adoption of the euro, the bu was not the result of a joint vision by eu leaders on the need to enhance banking supervision and resolution across the eurozone. instead, it was the outcome of bold and swift defensive reactions to preserve the single currency in the wake of the european financial and sovereign debt crisis. indeed, it was the crisis that led to the conviction that a common and enhanced framework for banking supervision and resolution was needed to help break the link between banks and sovereigns. this conviction gave rise to the single supervisory and the single resolution mechanisms, which, so far, are the key components of the bu. another important development related to the single resolution mechanism came to fruition last december, when the european stability mechanism was recognised as a common backstop to the single resolution fund for both solvency and liquidity support. today the rationale behind the creation of the ssm and the srb seems obvious. but, to be fair, before the european sovereign crisis erupted, there had been only a few warnings against the risks that a fragmented banking supervision landscape within the euro area involved. tommaso padoa - schioppa and romano prodi were among those who, in the early 2000s, highlighted the inefficiencies and potential issues that the introduction of a monetary union without common supervision could entail. despite their prescient analysis, their original calls for greater coordination among national authorities fell short of the kind of arrangement that was needed to address this structural flaw. as the crisis later demonstrated, the much greater degree of integration brought about by the bu proved to be the most effective response to the crisis, as well as to the preservation of the euro. ultimately, as many viewed it when it was launched 20 years ago, the euro project has been the catalyst for further reform and integration. as far

real eu banking union, financial institutions should be an eu matter, both in life and in death. apart from completing the bu, other elements are necessary to continue making progress towards a more complete financial union. from a regulatory perspective, the lack of a sufficiently homogeneous legal basis across the eurozone is evident. while full harmonisation may not be possible in the foreseeable future, there are some critical areas, such as anti - money - laundering, fit and proper standards and insolvency rules at credit institutions, where a common set of rules across the eurozone would foster the integration of the market, improving also the efficiency of supervision and resolution. as regards the institutional side, and looking beyond the bu, i want to highlight a second priority which, in my view, is essential to enhance the capacity of the euro area to cushion macro - financial shocks. this capacity is linked to the development of deep and integrated capital markets. the completion of the capital markets union ( cmu ) would complement the bu and would foster a truly cross - border financial sector, allowing economic agents to smooth asymmetric, national shocks. last, but possibly not least, it may also be time to tackle the absence of a pan - european safe asset. while controversial, the implementation of a single eu risk - free asset would likely become a common benchmark, allowing the prices of equities and bonds across the euro area to reflect fundamental risk more clearly, enhancing the effectiveness of monetary policy and fostering the attractiveness of european capital markets. a safe asset would also help mitigate the bank - sovereign nexus, reduce cross - border safehaven flows in the event of crisis and, ultimately, improve financial integration. of course, we should be cautious to design it in such a way as not to water down the incentives for sound national fiscal policies, which are the essence of achieving safety. 4 / 5 let me conclude. throughout its history, the eu has followed a path towards greater economic and political integration, which has brought clear benefits in terms of economic growth and citizens ’ rights. the bu is an important step in this direction and has been key to addressing the euro crisis. still, the implementation of certain regulatory and institutional elements are needed to reap the economic benefits of an increase in cross - border banking activities. when assessing our capacity to deal with future financial crises, we should not forget that the institutional setting remains incomplete and policy space has been reduced. as memories of the crisis fade, we should strive