start was achieved with the governance overhaul of the imf, endorsed at the g20 seoul summit. the imf ’ s move to better reflect the systemic importance of emerging market economies should lead to greater legitimacy. this could also have positive economic effects, such as a mitigation of precautionary reserve accumulation, which can otherwise contribute to the build - up of global imbalances. exercises aimed at analysing spillovers from major countries and regions to the other partners will also gain new legitimacy. more generally, however, i do not see a major reform of the international monetary system on the horizon, as there is no real substitute for the us dollar in medium term. the special drawing right ( sdr ) is not a promising option, and the insufficiently deep and liquid financial markets of emerging market economies will limit the role that their currencies can play in the foreseeable future. a more cooperative system of exchange rate regimes is essential but does not depend on unachievable radical reforms. concerning the third challenge, creating the conditions for growth, the g20 have approved the framework for strong, sustained and balanced growth which, alongside a set of structural reforms, has at its core fiscal consolidation, which could lead to 1 ) internal rebalancing in advanced economies by substituting public stimuli for increased private demand ; and 2 ) external rebalancing by promoting domestic demand in surplus countries and increasing external demand in deficit countries. such needs for rebalancing are sometimes presented in overly simplistic terms, namely that surplus countries should reduce savings and deficit countries should increase them, mainly through consolidation of public finances. the attempt to translate this into target ranges for current account deficits or surpluses failed at the seoul summit. the question is a complex one because it is not sufficient to change savings ’ behaviour. the solution also has to involve movements in the exchange rate, as explained by john williamson when he denied the possibility of an “ immaculate transfer ”. 5 in fact, the reduction of domestic savings implies a positive change in the capital balance, which requires a necessary negative development in the current account. the appreciation of the currency is what helps this to happen. this is why, at the g20 toronto summit, members with significant external surpluses committed themselves to strengthening their domestic sources of growth, as well as allowing greater flexibility in their exchange rate policies. at the seoul summit the g20 then pledged to “ pursue the full range of policies conducive to

customer demand for convenience, speed and efficiency. new technical solutions have even further nurtured these developments. given the prevalence of smartphones and other mobile devices, today ’ s customers are used to doing things on the spot. they want to make payments instantly, anytime, and anywhere, and expect them to be as readily available as instant messages, instant videos or instagram. the epc ’ s creation of the sct inst scheme came in response to these users ’ expectations. and instant clearing and settlement infrastructures have already been established, most notably tips. but, in the long run, simply being reachable for incoming payments initiated by other banks ’ customers will not be enough. i am convinced that banks need to offer even more innovative and efficient solutions for their customers and i would advise them to embrace the instant payments space as an opportunity to remain relevant players in the payments business. one area in which solutions have already emerged is payments between individuals, or so - called person - to - person payments. but we also need solutions encompassing payments at merchants, at the point - of - interaction ( poi ), both physical and virtual. in fact, some end - user solutions for instant payments at the point of interaction are already emerging across europe. but they tend to be limited geographically, meaning that each solution is only usable in one or a few ( neighbouring ) countries. this certainly 2 / 4 bis central bankers'speeches does not point to an integrated european payments market. in addition, in many instances, such regional solutions are not interoperable with each other. for example, although many solutions use qr codes that consumers can scan with their mobile devices, they have not implemented a common standard for these codes. so, there is a clear need for standardisation to enable european consumers to pay eu - wide using interoperable solutions. in this context, the erpb set up a working group to analyse in detail the barriers to the pan - european reach of point - of - interaction solutions. it will report back on the outcome of this work by november 2019. i hope to obtain useful input from this work. because if we do not achieve interoperability among national and regional solutions, as difficult as it may be, we run a serious risk of fragmentation of the european market. let me explain why i am concerned about the risk of increasing fragmentation through national point - of - interaction instant payment solutions. at the moment, users who want to pay effortlessly at european level have