unlock europe's potential, focusing on progress in three key dimensions : independence, investment and integration. first, we need to make progress on energy independence. given its proximity to russia's war of aggression against ukraine, europe was hit particularly hard by its dependence on energy imports from russia. to reduce the bloc's vulnerability to global shocks, improvements in energy security, efficiency and affordability will be vital. european firms'ability to compete globally will hinge on being less energy dependent. as energy security becomes imperative, europe will need to boost the roll - out of renewables by increasing investment in clean energy and green technologies, such as green hydrogen and smart energy grids. but the path to greater energy independence also entails considerable investment needs. this brings me to my second point : we need to foster investment. the european commission estimates that an extra €620 billion per year will be needed to finance europe's environmental and climate objectives, while an additional €125 billion will be required for the digital transition. 1 but making these investments, as well as addressing shortcomings in the functioning of the financial system, requires further progress on deepening our economic and monetary union, something you highlight in your draft resolution. faithfully implementing the eu's revised economic governance framework will help ensure that fiscal rules reduce high government debt and promote structural reforms and productive public investment, including for the green and digital transitions. i am pleased that eu policymakers, including this parliament, have recently reached a provisional agreement on the new framework, which should be swiftly and diligently implemented. this will be essential to enhance credibility and anchor expectations about the future course of fiscal policies. completing europe's capital markets union ( cmu ) will also be key in financing the twin transition. a fully functioning cmu is needed to foster private financing and complement public investment. we are currently underperforming in this area. our capital markets remain fragmented and, as a result, lack depth and liquidity, especially when compared with those of the united states. let me give two examples. first, the eu trading landscape is characterised by many small exchanges, with three times as many exchange groups as in the united states and more than ten times as many exchanges for listings. 2 second, eu venture capital, relative to the size of the economy, is only a small fraction of the size – around one - fifth – of us venture capital. 3 measures to promote equity financing would provide an opportunity to broaden european

andreas dombret : shadow banking and the roots of international cooperation speech by dr andreas dombret, member of the executive board of the deutsche bundesbank, at a reception to bid farewell to mr winfried liedtke, financial attache, and to welcome his successor, mr thomas notheis, beijing, 29 october 2014. * * * ladies and gentlemen welcome to our reception here in beijing. i am happy to have the opportunity to officially thank the bundesbank ’ s departing representative, winfried liedtke, and to welcome his successor, thomas notheis. allow me to say a few words on the roots of international cooperation. not too long ago the saying was that when the united states sneezes, the world catches a cold. this is certainly still true, and the turbulence following the federal reserve ’ s announcement of tapering was a case in point. however, the world economy of today is no longer a unipolar system. take china as an example. china is now the second largest economy in the world, and the imf estimates that, measured in purchasing power parities, china might have overtaken the united states in 2014 to become the world ’ s largest economy. thus, china is an important player on the global stage. according to imf data, china accounted for more than one third of global economic growth in 2014. at the same time, it promotes growth in other parts of the world through trade linkages or direct investment. over the past six years, chinese imports grew by an average of 12 % per annum while china ’ s foreign direct investment reached a new record in 2013 with a total of more than us $ 100 billion. however, no one can deny that a global player can also be a global risk : when china sneezes, the world might catch a cold, too. consequently, the imf has recently warned that a hard landing in china might pose a risk to the world economy. nevertheless, globalisation has not just taken us from a world economy that was dominated by one country to a world economy that is dominated by two countries. the world in which we live has become very small over the past decades. and in a small world, every policymaker in every country must be aware that his or her decisions can influence other countries as well. the world is interconnected by a close - knit network of trade relations and through a globalised financial system. financial markets in particular have become integrated to such