on the basis of solid analysis, we determined that asset purchases are a particularly effective tool in the current environment. given the still fragile state of transmission, they are also more efficient than alternative instruments, as they have a more direct impact on the borrowing conditions faced by households and firms. given the continued disruptions caused by the pandemic, the net effects to be gained from the pepp expansion are overwhelmingly positive. the additional asset purchases will contribute to easing credit conditions for the private sector and thus support viable businesses in continuing to operate and in retaining as many workers as possible. this will help to preserve jobs, which is the most important factor determining the income and financial security of individuals and families in the euro area. our measures play a key role in supporting credit intermediation through banks, not least since the business prospects of the banking system depend first and foremost on the macroeconomic outlook. finally, our decisions will make sure that higher borrowing needs by fiscal authorities associated with the necessary fiscal response to the crisis will not translate into materially higher interest rates for the private sector. overall, the decision to expand the pepp will prove to have been essential in avoiding an even deeper recession and in quickening our pathway to normalisation. our measures to combat the crisis also build on instruments already in place that continue to provide significant monetary policy support : our asset purchases under the asset purchase programme, our very low key interest rates, and our forward guidance that firmly connects our interest rate policy and our asset purchases to the outlook for price stability. priorities for the recovery the ecb measures will continue to be crucial in supporting the return of inflation towards our medium - term inflation aim after the worst of the crisis has passed and the euro area economy begins its journey to economic recovery. faced with an extraordinary challenge, europe will need an extraordinary response. the eu budget can play a key role in mobilising the necessary resources and putting them to productive use. to do so, it will have to be ambitious – not just in size, but also in its priorities and its effective implementation. the european commission ’ s proposal for a revised multiannual financial framework and the next generation eu are decisive in this regard. and we should not forget that the largest supranational issuance in euro ever announced that is associated with the proposal could also have a positive impact on the international role of the euro. it will be important to adopt this package quickly. setting a clear timeline will give more certainty and confidence to citizens,

businesses and financial markets. any delay risks generating negative spillovers and driving up the costs, and hence the financing needs, of this crisis. 3 / 4 bis central bankers'speeches european spending will be most effective if its focus is on projects that add real value from a european perspective. the primary common interest is to reduce the fragmentation stemming from the present crisis and divergence in the longer run. thanks to the single market we are each other ’ s most important trading partners and customers. this was true before the crisis and will especially hold true in a global environment characterised by weak trade and demand. but for the single market to work as an engine of convergence, european companies should compete on similar terms. for our joint benefit, european spending should aim to re - establish a level playing field and support those most affected by the crisis. we also have a common interest in generating the conditions for long - term sustainable growth and protecting the welfare of european citizens. the crisis can be an opportunity to modernise our economies to make them fit for the future. the transition towards a greener economy is a crucial part of this. we have the opportunity to step up the eu ’ s efforts to achieve its sustainability objectives by including climate change and sustainability considerations in the financial response to the covid - 19 pandemic. sustainable finance will be key to the transition to a carbon neutral economy. today, we published our reply to the commission ’ s public consultation and reaffirmed our readiness, in line with our mandate, to support the efforts of governments, public institutions and the private sector. 1 moreover, our forthcoming report on the international role of the euro finds that the euro was the main currency of denomination for the issuance of green bonds in 2019. another key dimension is the digital transformation. here, the recent lockdowns have accelerated the adoption of digital technologies on a broader basis. now is the time to expedite the digital transformation on a more permanent basis and bring the eu to the frontier of the digital economy. if combined with appropriate reforms at the national level, these measures will strengthen economic resilience and boost our economies in areas with high cross - border spillovers. conclusion let me conclude. our common response to this crisis, if used to effectively direct investment towards strategic priority areas, can be a catalyst for realising europe ’ s longer - term vision. ensuring a successful recovery will require all eu institutions to do their part. i very much welcome the european parliament ’ s call for an ambitious european