. for instance, a cross - country comparison of the effects of the expansionary balance sheet policies implemented in the euro bernanke, b. s. and gertler, m. ( 1995 ), “ inside the black box : the credit channel of monetary policy transmission ”, journal of economic perspectives, vol. 9 ( 4 ), pp. 27 – 48 ; peersman, g. and smets, f. ( 2005 ), “ the industry effects of monetary policy in the euro area ”, the economic journal, vol. 115 ( 503 ), april, pp. 319 – 42. bis central bankers ’ speeches area between 2009 and 2012 shows that the impact on output was strongest in the countries with the most well - capitalised domestic banking systems. 2 a second set of measures which could be undertaken in the context of the cmu agenda relates to the harmonisation of legal systems. evidence for the euro area suggests a strong link between the legal structure of a country and its financial architecture, 3 and shows that crosscountry differences in those systems are a source of asymmetry vis - a - vis the monetary transmission mechanism. 4 the cmu debate has brought to light the importance of going beyond the harmonisation of financial legislation, and of tackling barriers resulting from taxation or corporate and insolvency laws. according to a recent study by the association of financial markets in europe ( afme ), the current patchwork of insolvency frameworks is estimated to increase the cost of corporate debt by between 18 and 37 basis points. on the other hand, if all member states were to reach a recovery rate of at least 85 %, this could translate into an aggregate gdp gain of between 0. 3 and 0. 55 %. 5 by deepening capital markets, cmu implies a move towards a more market - based financial system that can facilitate the conduct of monetary policy through its effects on the transmission mechanism. it is a well - documented empirical regularity that yields and asset prices respond faster to changes in monetary policy decisions than bank lending rates. 6 the slow adjustment of bank rates is thus a contributing factor behind the delayed impact of monetary policy on the real economy. consequently, by improving access to market - based finance, the development of the cmu can help increase the speed at which monetary policy is transmitted to the real economy. 2. cmu, financial stability and the scope of unconventional monetary policy the development of the cmu can also increase the

will do our best to ensure that a digital euro meets the needs and expectations of europeans. but it can only be a common european enterprise. the alignment of european authorities and institutions, mindful of their respective mandates and independence, will be key if a digital euro is to be accepted. i am therefore pleased to see that this committee welcomed our work in its recent resolutions on the ecb annual report and the international role of the euro. as co - legislators and representatives of europeans, you have a fundamental role to play in the discussions on the framework that would be needed to issue a digital euro. this is why i very much appreciate exchanges like the one today. i now look forward to your questions. annexes 14 april 2021 appendix - the eurosystem ’ s analysis of privacy - enhancing techniques in central bank digital currencies english 1. “ eurosystem report on the public consultation on a digital euro ” 2. i have discussed elsewhere the possibility that a digital euro may become too successful – namely if, owing to its strengths of safety and liquidity as a form of central bank money, it were to affect monetary and financial stability – and how this risk can be mitigated through appropriate design choices. see panetta, f. ( 2021 ), “ evolution or revolution? the impact of a digital euro on the financial system ”, speech at a bruegel online seminar, 10 february. 3. the questionnaire used in the public consultation included a multiple - choice question ( question 1 ) that asked respondents to rank, in order of importance, the features that a digital euro should offer in their view. the percentages in the text refer to the share of respondents that ranked a specific feature first, i. e. most important. the full question reads as follows : how would you rank, in order of importance, the features that a digital euro should offer? a. i want to be able to use it throughout the euro area. b. i want my payments to remain a private matter. c. i want to be able to use it with my smartphone and at payment terminals. d. i want to be able to pay even when there is no internet or power connection. e. i want it to be easy to use. f. i want to use a digital euro without having to pay additional costs. g. i want it to take the form of a dedicated physical device. h. i want it to be a secure means of payment. i. i want