is that the bank - sovereign nexus, which the banking union was designed to counter, persists, within a complex and incomplete framework. european leaders must therefore not lose sight of the end goal and instead complete the project in a reasonable timeframe. the need to press ahead is made even more urgent by the fact that while the european banking and financial system has demonstrated its resilience, its stability is still at risk. indeed, risks to europe ’ s macro - financial stability have recently intensified. while it is true that the expansionary monetary policy stance in the euro area and in europe at large is supporting the liquidity of financial markets, curbing tensions on government securities, and m., 2014, ‘ european banking : bailout, bail - in and state aid control ’, international journal of industrial organization, vol. 34, issue c, pages 37 - 43. 3 schoenmaker d., 2015, ‘ firmer foundations for a stronger european banking union ’, bruegel working paper, 2015 / 13, november. 4 rossi s., 2016, ‘ the banking union in the european integration process ’, speech at the conference on european banking union and bank / firm relationship, april. 2 dewatripont easing bank funding conditions, uncertainties have nevertheless increased following the uk referendum and, though perhaps less so, the italian referendum. nor, given recent political events, expected policy changes in the united states, and fragilities in emerging economies, are they likely to be dispelled over the medium term. european banks ’ profitability and their business model are under extraordinary pressure, due to sluggish growth, low interest rates and, to a differing extent across countries and banks, excess capacity, large stocks of non - performing loans and difficult - to - value ( level 3 ) assets. meanwhile, low nominal interest rates are squeezing the profit margins of european insurance companies and pension funds. at a recent hearing of the committee on economic and monetary affairs of the european parliament, the ecb president warned that a lengthy period of low interest rates has created ‘ fertile terrain ’ for financial - market risks and called on governments to take action against the risks associated with rising debt levels or excessive valuations, which have resulted in significant vulnerabilities in some european real estate markets. while they are more solid today than they were in the pre - crisis period, in the absence of an adequate, proportionate and properly functioning safety net, europe ’ s banks are also more

be provided by behavioural economics. individuals do not act as rational agents : they recall information selectively, make little use of statistical analysis, have unstable preferences, have cognitive and emotional limitations, are vulnerable to social pressures. these circumstances have testable implications on decision - making and choice, and should be taken into account when programs are aimed at changing people ’ s behaviour. over - reliance on information alone must be prevented. it is necessary to balance the possible approaches, provide clear and accessible information, provide also cognitive instruments to correctly process information and make the appropriate decisions, encourage familiarity with financial issues. knowledge, behaviour and attitudes are the three pillars of any sound programme. we have to avoid that financial education increases confidence without increasing skills : the risk is overconfidence that contributes to sub - optimal decisions. good communication is also essential for successful programmes. the language must be consistent with the target group and the goals of the programme. especially when programmes are addressed to the most vulnerable and least educated groups of the population, the language must be clear and easily understandable. panel iii was dedicated to one of the areas where the need for financial education programmes is most compelling : pension schemes. in the face of demographic trends people need to understand the risk of poverty in retiring age and to take the proper, counterbalancing actions. in this field, there seems to be a link between general knowledge of financial matters, familiarity with the public pension system and participation in supplementary pension schemes. for this reason we are confident that education can promote virtuous behaviours. speakers have pointed out some strategies to promote pension literacy : – provide clear and understandable information on pension schemes ; – deliver financial education at school in order to increase youth awareness that rainy days can come. financial education may benefit individual citizens and the system as a whole ; it promotes a more competitive market of financial products and services ; it empowers customers vis - a - vis the financial industry. as i have already mentioned, bank of italy has launched some initiatives, but this is just the beginning. i am glad to announce that italian supervisory authorities have decided to combine their efforts, enhance their mutual cooperation mechanisms and coordinate future financial education programmes. today a memorandum of understanding on mutual cooperation in the field of financial education has been signed. in the framework of this agreement, and in line with the experience of other countries, the supervisory authorities are developing a common web portal as a clearinghouse of the existing information materials. i wish to close this symposium by