is needed to reach our price stability target and support sustained growth and job creation. but monetary policy cannot be the only active player in the field. other policy areas should contribute more decisively to raising the long - term growth potential and reducing vulnerabilities. tommaso padoa - schioppa warned monetary policy makers not to confuse the independence of the central bank with isolation. as he put it, “ strong currency requires a strong economy and a strong polity, not only a strong and credible central bank ”. 1 there is much room for enhancing coordination, each policy maker working within the perimeter of its mandate. with limited policy spaces this is ever more important. sound fiscal and economic policies at the national level are the first line of defence to deal with economic shocks. implementation of structural reforms needs to be substantially stepped up to increase resilience, boost productivity, and reduce unemployment in a lasting way. automatic 1 / 3 bis central bankers'speeches stabilisers should play their full role. all countries can reinforce their efforts to achieve a more growth - friendly composition of public finances. why is that important? because productivity growth is critical to rising living standards. sustainable growth requires more investment, research and innovation. to accomplish this, sufficient public sector contribution is necessary. we need to be able to secure investment in public infrastructure, including digital infrastructure, not least in countries that are lagging behind in 5g, or even more regrettably, sometimes even in 4g. a large and integrated single market is the cornerstone of the eu, but the member states also benefit from open global markets. at the same time, the transformation brought about by globalisation and the digital revolution has resulted in winners and losers. this, in turn, has helped to promote populist policies promising easy answers to difficult questions. protectionism, however, is not an answer. isolation is not possible without great losses in citizens ’ living standards. we should continue to work for a europe that pursues growth also from beyond its own borders through free - trade agreements ; for a europe that combines a strong entrepreneurial drive and a stability culture ; and for a europe that guarantees civil rights and social justice in the digital age. these are concrete goals for sustainable growth and job creation – and fundamentally for human development – that really matter to the citizens in europe, which should always be our key yardstick. next, let me turn to key policy priorities in the financial sector. a well - functioning financial system is fundamental

the dollar – it would be about building a more stable global financial system. it would also be about providing an additional channel for foreign investors to invest in europe, including into sustainable finance and the green bond markets. there are major challenges involved in taking the cmu forward. for that, we need a clear vision and persistence. we need to revitalise the action plan. with this in mind, in my view it would be useful to reassess the narrative attached to the cmu. a new concept – “ growth and investment union ” for example – might put a more positive drive on the project. dear colleagues, the current global headwinds underline the importance of boosting the economic revival of europe through structural reforms, public and private investment in research and innovation, and a revitalisation of the single market. we need to complete the emu financial architecture to enhance capital allocation and improve private risk sharing. only in this way can we reap full benefits of the single market. and, crucially, europe ’ s economic revival needs to be combined with the greatest challenge of our generation : tackling and mitigating climate change. it calls for a consistent strategy from the eu on how to pursue economic and ecological transformation of our societies and enterprises. in this challenging task, the financial system will need to play an important role in managing risks and mobilising capital for green investments. let me wish you most productive discussions and enjoyable days in helsinki! – many thanks for your attention. 1 see padoa - schioppa 3 / 3 bis central bankers'speeches