or incomplete, hampering its ability to deliver its full potential for euro area citizens. this is why the ecb has been advocating and will continue to make the case for a more complete emu. let me spell out what i mean by a more complete emu. i mean an emu with a full banking union underpinned by a common deposit insurance scheme ; a true capital markets union that channels investment to innovative and productive uses ; and a central stabilisation function as a common line of defence against shocks. a more resilient emu with these elements would not just help to protect our living standards from adverse domestic and global developments. it would also support europe ’ s influence in the world, including by making the euro more attractive worldwide. conclusion let me close by highlighting that the joint nature of the challenges i have discussed will require all parties to do their bit to enable europe to perform at its best for all of its citizens. this includes the ecb, which within its mandate is ready to play its part. as i said at the beginning, the universal nature of these challenges also underscores the need for continued dialogue between the ecb and the european parliament. in this spirit, i look forward to our exchange this afternoon and the final resolution on the ecb ’ s annual report. thank you. 3 / 3 bis central bankers'speeches

peter praet : interview in expresso interview with mr peter praet, member of the executive board of the european central bank, in expresso, conducted by mr joao silvestre on 18 june 2018 and published on 23 june 2018. * * * is the asset purchase programme ( app ) really going to conclude at the end of this year? what we did last week was to express an anticipation that net asset purchases would end at the end of the year. we didn ’ t say we were now deciding to stop the programme in december. we still have six months to go. we translated the increased confidence we expressed about developments in the economy and inflation into an anticipation about the app. and, at the same time, we also enhanced the forward guidance on interest rates. but, in any event, to anticipate the end of the programme is to give a strong signal. what exactly do you mean by giving a strong signal? we undertook a careful review of the progress made towards a sustained adjustment in the path of inflation to levels below, but close to, 2 %. it was a strong signal because, in spite of a recent moderation in euro area economic growth, we concluded that progress towards our aim has been substantial so far, and actually sufficiently substantial for us to be in a position to express this anticipation of an end to net asset purchases at the end of the year. we think that the underlying strength of the economy gives grounds that inflation convergence will continue in the period ahead, even after a gradual winding down of net asset purchases. what is that confidence based on? there is a path of gradual improvement towards our inflation aim, as the euro area economy will continue to grow above potential. increasing pressure on the utilisation of resources, notably in the labour market, will continue to support inflation over the medium term. is the ecb comfortable with the recent projection pointing to annual inflation of 1. 7 % over the period to 2020, clearly below the 2 % aim for these three years? the eurosystem staff projections are only one element of our assessment. what is crucial is that we see a sustained path of adjustment of inflation towards levels that are below, but close to, 2 %. over the projection period, the contribution of energy to inflation declines, and inflation excluding energy and food gradually rises, as capacity constraints become increasingly binding. what the ecb anticipated last week was the halving of asset purchases between october and december. but there was a provis