integration in the euro area. third, the capital markets union and the banking union are intrinsically linked. more integrated capital markets support cross - border banking activities, while more cross - border holdings would allow banks to diversify, making them more resilient. from issuance to underwriting, banks provide essential services for capital markets. therefore, a more resilient and integrated banking system also supports the smooth functioning and further integration of capital markets. key legislative initiatives to advance capital markets integration to move forward on the legislative front, we need to finalise the implementation of the commission ’ s capital markets union action plan – without compromising on its ambition. this includes implementing proposals such as the consolidated tape, the targeted harmonisation of insolvency rules and the upcoming initiative on the withholding tax framework. we welcome the recent statement made by the co - legislators in april, in which they committed to finalising cmu legislative initiatives during the current institutional cycle, and the recent agreement on the european single access point. the esap will help to mobilise and allocate capital by making it easier for investors to identify suitable firms and projects to invest in. likewise, the proposed targeted harmonisation of insolvency regimes should make it easier to reallocate resources from failing firms and provide more transparency for cross - border investors. finally, a more efficient and harmonised withholding tax framework will reduce the burden and costs for investors and facilitate cross - border investment. beyond the current institutional cycle and the cmu action plan, eu legislators should also look at structural issues, such as improving the current architecture to enable more consistent and harmonised supervision of markets. conclusion the euro area financial system recently passed a real - life stress test. at the same time, the events of this spring underlined the importance of making decisive progress on the european banking union and capital markets union projects. the financial market turbulence and contagion from the united states and switzerland would have been far more muted had we been closer to our goals. completing the banking and capital markets union projects will increase cross - border bank lending and enhance the dynamism of public and private equity markets. both are key to enhancing integration and stability in the euro area financial system, and they will also ensure that the funding for the green and digital transitions is available to meet the challenges ahead. thank you for your attention. 1. rose, j. ( 2023 ), “ understanding the speed and size of bank runs in historical comparison

we should never take peace for granted, not in europe, nor anywhere else in the world. 2. the benefits of european integration churchill ’ s vision was a political one. but the re - creation of the european family was advanced largely by the integration of national economies. and while peace and stability are rightly the most celebrated achievements of the european union, economic integration has produced remarkable results in its own right. economic integration raises welfare through two mechanisms : first, via increased trade, and second, via increased competition, which in turn strengthens innovation and productivity. judging economic developments against a non - existing counterfactual, in this case nonintegration, is obviously a tricky business. but the studies available show that the effect is bis central bankers ’ speeches sizeable in any case. europe is wealthier because of economic integration, with estimates of the output boost ranging from 5 % to more than 25 %. 1, 2, 3 and it seems that britain, too, has gained. half of its trade is with the european union, and studies suggest that eu membership has boosted britain ’ s trade in goods with other eu countries by more than 50 %. 4 the center for economic performance 5 at the london school of economics has found that the immediate benefits of increased trade amount to 1¼ % to 3 % of gdp. and if the longer - term effects of strengthened competition and increased productivity are taken into account as well, eu membership is estimated to have provided a boost of up to 10. 5 % of gdp. but as much as the uk gains from being part of the eu, so the eu gains from having the uk as a member. the eu is stronger today because of britain ’ s contribution to it. the european economy is more open and dynamic as a result of britain ’ s commitment to open and flexible markets – a position very much in tune with the bundesbank ’ s, i might add. 3. eu ’ s and emu ’ s unfinished business and that commitment to open and flexible markets holds the promise of even bigger returns. a lot of the potential inherent in our most important european catalyst for growth, the single market, is still untapped. the single market has been very successful in facilitating trade in goods. hence, competition in this area is intense. the mark - ups that firms are able to charge in addition to their costs due to market power are low and are comparable to those in the us, for example. when it comes to services,