. in emergency conditions, financing current expenditure with deficit spending may make it possible to focus more carefully on the need for social justice and on protecting those who have been hit particularly hard by the crisis and by the changed situation. budgetary deviation is a macroeconomic stabilization tool, but it cannot become the norm : a high and persistent deficit is not sustainable, it inevitably translates into an increase in the debt - to - gdp ratio. the way to achieve lasting progress is through economic development, enhancing the skills of the labour force and investment. considerable progress can be made through the investment programmes and the reforms envisaged by the national recovery and resilience plan. the nrrp provides enormous funding for goals that must undoubtedly be shared across the political spectrum, namely accelerating the ‘ twin ’ green and digital transition, providing greater support for education and research, and remedying the development lags in the south. the nation is on the right path : our success in completing the main investment programmes, which are now all in the start - up phase, and the related reforms, which are not ‘ dictated by brussels ’ but are in our own interest, will be essential to strengthen the growth potential as well as to counter the risks, including of a financial nature, determined by heightened global uncertainty. the european union continues to be a vital resource for our country. this has been clearly proven by the show of solidarity during the pandemic, including through a number of concrete decisions, by the european institutions, by the leaders and by the peoples of the member states. there are no enemies in brussels, let alone in frankfurt. the fears and prejudices that surfaced with the double crises of the last decade must be definitively rejected. we must engage in dialogue and take decisions consistent with the path that we have forged together towards an innovative and more sustainable economy. we must do this in order to overcome the uncertainties and the problems posed by this very difficult economic situation ; it is essential in order for us to be able to face the challenges, in many ways totally unexpected ones, that we find before us at the global level.

insurance agenda with respect to the regulation and supervision of insurance. as this audience knows, less than a month ago, on 22 september, the european commission adopted a proposal for amending the solvency ii directive. as today ’ s conference is mainly to do with the priorities of the g20 and its three overarching keywords, i shall concentrate on sustainability issues within this proposal ; we must leave a fuller account of, and comment on, it for another occasion. let me however state very briefly that our overall assessment of the 4 / 5 bis central bankers'speeches commission ’ s proposal is mainly positive at this stage. the proposal appears to contain several elements that are potentially useful for mitigating the issue of procyclicality and unwarranted volatility of requirements. the determination of the relevant parameters, however, will be the subject of subsequent delegated regulation ; therefore, it is not yet possible to evaluate the overall effect of the package. we shall continue to offer our contributions at both the european and the national level. we are ready to support the government on a number of technical aspects that deserve attention. going back to ‘ planet ’, the commission ’ s proposal envisages the following actions : ( i ) to include in the own risk and solvency assessment ( orsa ) the consideration of risks relating to climate change, which will be considered as material / significant and will need to be treated specifically, including through the use of quantitative scenarios ; ( ii ) to mandate eiopa to recalibrate natural catastrophe ( ‘ nat cat ’ ) parameters at least every three years ; and ( iii ) to mandate eiopa to consider, by june 2023, a dedicated prudential treatment of exposures relating to assets or activities associated substantially with environmental and / or social objectives. these actions are largely welcome. in relation to the last point, however, let me reiterate here, as both a banking and an insurance supervisor, a position that i have already expressed on a number of occasions. prudential regulation should remain strictly risk - based. we should only introduce reductions in capital absorption for ‘ green ’ investments on the basis of sound evidence of that they carry a reduced risk. direct incentives intended to speed up the transition to ‘ net zero ’ should be channelled not through prudential waivers, but through different means, such as taxes and subsidies. the climate risk element in the revision of solvency ii does not come out of the blue.