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

., labhard, v., morgan, j., petroulakis, f. and vivian, l. ( 2020 ), “ virtually everywhere? digitalisation and the euro area and eu economies : degree, effects, and key issues ”, occasional paper series, ecb, forthcoming. 2 european commission ( 2020 ), “ identifying europe ’ s recovery needs ”, staff working document, ( 2020 ) 98. 3 anderton et al. ( 2020 ), op. cit. 4 perez, c. and murray leach, t. ( 2018 ), “ a smart green ‘ european way of life ’ : the path for growth, jobs and wellbeing ”, beyond the technological revolution working paper, 2018 – 01. 5 in terms of revenues. see : ec. europa. eu / environment / ecoap / indicators / socio - economic - outcomes _ en 6 ecb ( 2020 ), the international role of the euro, june. 7 sondermann, d. ( 2016 ), “ towards more resilient economies : the role of well - functioning economic structures ”, working paper series, no 1984, ecb, november. 4 / 4 bis central bankers'speeches