exports to china have increased, but are still limited. over several years, enterprises in central european countries have been a source of competition for norwegian jobs. integration is also opening new markets and providing new sources of income for norwegian enterprises. at the same time, tender requirements and the freedom of establishment have increased the competition facing norwegian industries that were previously sheltered. a steadily larger share of norway ’ s consumer goods imports come from china and central european countries. growth in imports from china was provided with an additional impetus after china became a member of the world trade organization in 2001. imports from eastern europe have also continued to grow. there are many economic agents in norway that are benefiting from globalisation. consumers are enjoying lower prices for goods and services. input prices have fallen and companies can sell their products in new markets. but there are also costs. norwegian businesses and jobs may lose in the competition. the challenge lies in moving idle resources to new business activities. this requires adaptability and a sound cost policy. the norwegian economy is unique in being both a fully developed economy and a major oil exporter. norway is the world ’ s third largest oil exporter. in the future, we will become an increasingly important exporter of natural gas. the petroleum sector accounts for 44 per cent of exports and 17 per cent of gdp. the present value of remaining petroleum reserves has been estimated at close to nok 2 000 billion ( present rate of net cash flow ). the bulk of norway ’ s petroleum wealth will be extracted over a period of 40 years, from 1990 to 2030. we are now in a phase where petroleum wealth is being converted from natural resources under the seabed to financial assets abroad. the government petroleum fund was established in 1990 with a view to promoting an even distribution of wealth across generations. the intention behind the petroleum fund is that the cash flow from petroleum production should be channeled to the fund and invested abroad. by doing so, changes in oil prices have little effect on the mainland economy. this chart illustrates how petroleum activity is separated from the mainland economy. oil companies ’ revenues are in foreign currency. the government net cash flow from taxes and direct ownership in oil companies is transferred directly to the petroleum fund. the return on the petroleum fund investments also adds to the capital. of the total capital accumulated last year, nok 59 billion was spent over the fiscal budget. the petroleum fund invests only in foreign markets. the fund serves as a buffer against shocks. changes in petroleum revenues are

and the shift from tangibles to intangibles. 4 europe already hosts the largest eco - innovation and circular economy industry in the world5 and the euro is the currency of choice for global green bond issuance. 6 in the twentieth century, europe was also at the forefront of the creation of the welfare state. the crisis today offers a possibility to consolidate and expand our global leadership on the environmental front and to make it converge with more digital lifestyles – producing a new, more sustainable economic model. finally, the drive to build more resilient supply chains could be the catalyst we need to definitively complete the single market. if we are to “ de - globalise ” while also achieving allocative efficiency and strategic autonomy, we will have no choice but to make full use of the size and diversity of our continent - wide economy. so the potential to frame a positive european vision should, i hope, be compelling. the commission ’ s recovery fund proposal is clearly a key building block in delivering on this goal. but the european level cannot be expected to do it alone. crucially, the recovery fund will only reach its full potential if it is firmly rooted in structural reforms conceived and implemented at the national level. we will get a “ bigger bang ” for each euro spent if countries conduct the structural reforms they need at the same time. as an illustration, ecb research shows that in the event of a common shock hitting all euro area countries – of the type we have just seen – those with less efficient economic structures can on average suffer up to twice the output loss of a country that is at the frontier of institutional parameters. 7 the country specific recommendations identify further helpful reforms. in italy ’ s case, i understand that these recommendations call for, among other things, investing in digital infrastructure for education and training, promoting renewable energy production, developing ebusiness models and modernising public administration. such reforms – designed and owned by you – are indispensable to capitalise on this moment. 3 / 4 bis central bankers'speeches conclusion i therefore encourage you, as policymakers, not to let this crisis go to waste. my institution, the ecb, will play its part within its mandate. but it is for you to prove to citizens that our societies will emerge from this transformation stronger and greener. if we are collectively successful, uncertainty will start to turn into confidence, and then a real recovery can begin. 1 see anderton, r., jarvis, v