and should concretely increase the efficiency of our supervisors. but i would like to focus for a moment on the contribution that we can make, as a central bank and supervisory authority, to the development of the regulatory framework. in this area, i think it is important to recall a few principles that underpin our vision as a supervisor and central banker with regard to the changes in the regulatory framework of the financial system. first of all, i would like to stress that no regulatory framework is set in stone. we must keep an open mind, and have the necessary understanding and lucidity to adapt frameworks to technological evolutions - or even revolutions -, as well as to their challenges and associated risks. secondly, this adaptation must, in my view, preserve and consolidate two fundamentals of financial sector regulation : the financial stability objective and the principle of monetary sovereignty. in this respect, i would like to commend the ambitiousness of the european commission ’ s recent digital finance package and its priorities, in particular those to fight against the fragmentation of the digital single market for financial services and to address the new challenges and risks associated with the digital transformation. with regard to these risks, i think it would be appropriate for the commission to address the complex but currently unavoidable issue of the oversight framework to be applied to critical it service providers, including cloud service providers, and the equally important matter of the supervision of issuers and distributors of stablecoins, whether they be single or multi - currency coins. i will not go into detail on the commission ’ s proposed legislation, which still requires careful examination on our part and which will, of course, have to be improved by the negotiations that are about to get underway. i simply want to say here that the regulations ’ proposals aimed at critical it service providers and stablecoins include promising provisions : for the former, a dedicated framework that does not exempt financial intermediaries from their responsibilities and their obligation to use european service providers, and for the latter, a strict supervision that involves and associates national and european authorities. i would also like to stress here that the two points for attention i have just mentioned do not, in my view, overshadow any of the following : the many other initiatives announced in the action plan, the work to facilitate remote access and promote an interoperable digital identity, the provisions on cybersecurity, or the forthcoming discussions on artificial intelligence or data sharing in financial services - open finance after open banking.

close coordination of economic policy with common rules ” 3. but let me specify her / his concrete tasks. i see four of them. first, the minister would be in charge of preparing the euro area - wide collective strategy to fulfill its sustainable growth mandate and collectively agreeing the division of tasks through the setting of individual performance targets for member states. nobody seriously disputes that a collective strategy involving more structural reforms in some countries including france, and more public investment in others including germany would make for a better policy mix for sustainable growth and employment in europe. second, the finance minister would be responsible for supervising the implementation of the collective strategy, using adequate instruments to provide symmetric incentives. negative incentives would include the existing sanction mechanisms, and could be broadened in contractual procedures, already put forward in the 2013 franco - german contribution on emu, or in chancellor merkel ’ s 4 “ binding reform contracts ” proposal. a positive incentive could be for instance the access to a euro area ” convergence fund ”, through which member states could benefit from common funding. third, the finance minister would be responsible for implementing centralized crisis management. a finance minister for the euro area would naturally be in charge of overseeing european stability mechanism operations. last, while moving towards further integration, the minister could be given the authority for managing a euro area convergence fund, progressively evolving towards a euro budget. further integration and democratic accountability should move forward in parallel. these institutional changes obviously require a new treaty. marcel fratzscher, lessons for europe from german monetary union, diw economic bulletin 27. 2015 angela merkel ’ s first parliamentary speech of the third term, december 18 2013. bis central bankers ’ speeches a legitimate institution with genuine admin. capacity legitimacy : appointment process and international role capacity : treasury administration and advisory councils accountability : stronger democratic control over euro area affairs first, we need a legitimacy - enhancing appointment process. the finance minister could thus be appointed for a five - year period by the european council acting by qualified majority on a proposal from the president of the eu commission. the new appointment would be subject to the formal approval of the european parliament, and the finance minister would be member of the commission, as well as chair of the eurogroup. second, the euro area finance minister would need to be backed by a genuine treasury administration. such a civil service would also benefit from the public advice of two independent bodies, the european fiscal board and the competitiveness council. last, if we succeed in implementing further integration, we