and economies, through increased cross - border risk sharing. a number of factors are required to create successful and well - functioning capital markets, which the objectives of the recent cmu action plan seeks to address : 2 1. support a green, digital, inclusive and resilient economic recovery by making financing more accessible to european companies ; 2. make the eu an even safer place for individuals to save and invest long - term ; and, 3. integrate national capital markets into a genuine single market. in an increasingly globalised economy, access and connectedness to global markets, and a lack of fragmentation is more efficient than multiple, closed capital market systems. 1 / 2 bis central bankers'speeches of course, we must ensure that progress towards deeper integration of capital markets in europe is accompanied by policies to ensure resilience in the financial system. the covid - 19 shock last year underscored some vulnerabilities in the market - based finance sector in several jurisdictions. policymakers must ensure the level of resilience in market - based finance is commensurate with its contribution to systemic risk and how it interacts with the financial system and the economy as a whole. to meet this goal, the central bank of ireland has been one of several public bodies calling for a macroprudential framework for market - based finance and we will continue to engage with our european and international colleagues on this important issue. 3 the next generation eu ( ngeu ) fund before i conclude, i would like to touch briefly on the question of how the next generation eu ( ngeu ) fund may affect european financial markets and the attractiveness of the euro as a reserve currency. firstly, the approval of the ngeu last year was an important step in the response to the pandemic shock and complemented and reinforced the monetary policy decisions taken by the ecb, particularly the announcement of the pandemic emergency purchase programme ( pepp ). both programmes, to differing degrees, aimed at stabilising markets and were effective in doing this. the mere announcement of both stabilised markets ; this is clearer for ngeu since the time between the first announcements and the implementation was more than a year. aside from the initial effect on financial markets, the ngeu may increase potential growth in the euro area economy, particularly with the green and digital investment components. from a monetary policy perspective, this contribution to sustainable growth may help to reverse the decline in the real equilibrium interest rate and, in turn, it

given the cross - border nature of these funds, we have sought to ensure international coordination in codifying these measures, as exemplified by the fact that the commission de surveillance du secteur financier ( cssf ) in luxembourg is also publishing a similar consultation paper on ldi funds. given the international nature of these funds, such coordination is important to ensure the effectiveness of these measures. we also continue to progress our work on the phased implementation of the macroprudential measures for irish property funds announced last year. and in addition to our work on property funds and ldi funds, we continue to work with international partners to develop and operationalise the broader macroprudential framework for the funds sector. we are also considering feedback received to our discussion paper on an approach to macroprudential policy for the sector. the deadline for feedback closed last week and a feedback statement will be published next year. thank you for joining us this morning. i will hand you over to director of financial stability mark cassidy to take us through the report, before answering your questions. 2 / 2 bis - central bankers'speeches