the “ why " : greater stability, to counter the risk of a new crisis befalling an unprotected euro area ; and greater growth, to catch up our past lag on the united states and finally treat the fatal disease of mass unemployment in europe. but how can we achieve this shared objective? we should trigger four accelerators : a macro accelerator, which would consist of a collective economic strategy shared by all euro area member states ; a micro accelerator, which would take the form of a financing union for investment and innovation, going beyond the cmu ( capital markets union ) ; a fiscal accelerator, which would draw on a euro area budget. the fourth is not an accelerator in substance, but rather a “ facilitator ” for the first three : on institutions, a euro area finance minister and parliament. these accelerators would contribute to the functions of economic policy, as described by musgrave : 2 allocation, stabilisation and distribution. the allocation function aims at making sure that resources are used in an efficient way. this would obviously be the role of the micro accelerator, but also of the fiscal one – through the financing of european common goods. the stabilisation function consists in the smoothing of the cycle and cushioning of the impact of crises, and this could be ensured mainly by the macro accelerator, but also by the micro one, thanks to enhanced private risk sharing, and possibly by the fiscal one. finally, the distribution function is to foster an equitable sharing of income. this role could possibly fall to the fiscal accelerator but its implementation would require increased trust and greater economic convergence between euro area member states in order to avoid a “ transfer union ” which would 1 / 4 bis central bankers'speeches be a one - way budget : in that case, i would understand german fears. so these four accelerators are needed, but this does not mean they all have to be implemented at the same time. the latter two accelerators, fiscal and institutional, would indeed require treaty changes, unless they were to be very limited. however, this must not stop us from taking steps straight away on the first two accelerators, macro and micro, on which i will insist today. i would like to share with you some personal reflections – useful for the proposals that the european commission will make in december and for our debate today. to be more specific, i will focus on one part of each of these two accelerators, where progress can be made quickly : i will

of central bankers and supervisors ’ achievements towards tackling climate change, which are significant and ( ii ) discuss four important tasks that still lie ahead. i. central banks and supervisors are promptly moving ahead regarding the snapshot of risks in its first progress report, released in bali in october 2018, the ngfs unanimously concluded that “ climate - related risks are a source of financial risks. it is therefore within the mandates of central banks and supervisors to ensure the financial system is resilient to these risks. ” so what do we do? a. integrating climate - related risks into micro - supervision this is an ambitious but complex task, on which progress has been made in many countries. looking at the potential courses of action for supervisors, i believe that our main priority should be the disclosure of existing exposures in the financial sector, what i usually call “ the snapshot of risks ”. a number of supervisors have paved the way, including the dnb, the bank of england / pra and the french supervisory authority ( acpr ). the acpr published last week a second report on the exposures of french banks and insurers to climate risks. this report gives a clearer view on climate risks and opportunities : asset exposures of financial firms to physical risks remains non - material in france thanks to investments in very low risk zones ; banks ’ exposures to transitionrelated risks were slightly reduced between 2015 and 2017 and now represent roughly 12 % of credit risk ’ s exposures at default. our supervisor also has a clearer view on the blind spots in the risk management framework, which must be addressed : executive bodies are committed to embracing further climate risks at the highest level of decision - making but the degree of implication across the french financial sector is still heterogeneous ; the granularity of the analysis provided by banks and insurance companies is not sufficient. this step should be widely promoted among ngfs members, who, i believe, need to leverage best practices throughout its membership. i therefore very much welcome the supervisory handbook that will be prepared as a ngfs technical deliverable for 2019 - 20. b. integrating sustainability factors into own - portfolio management central banks must send the right signal and lead by example in their investment and disclosure policies. the dnb has signed up to the un principles for responsible investment. norges bank, which manages the norwegian sovereign wealth fund, has advocated a diversification of the portfolio and is implementing a divestment strategy dedicated to selling off some oil and gas