those ccps whose activities are “ super - systemic ” for the eu market establish themselves in the european union. they are a step in the right direction and represent the only viable mechanism to guarantee that european authorities and national central banks in particular, can control and manage the risks that ccps are likely to pose to the financial stability of the european union. once the provisions on the resolution of ccps have been finalised, the compensation framework within the eu will have been improved considerably. 2 / 3 bis central bankers'speeches * * * let me conclude with a general remark that concerns the economy : we need a system to assess, ex post, the economic effects of the reforms. france fully supports the work of the fsb to develop a structured analytical framework, which germany has rightly included in its priorities for its g20 presidency. europe, and germany and france in particular, now has a special duty to protect financial regulation – a regulation that is sensitive to risk, balanced in its treatment of banks and nonbanks and binds the entire international community. generally, that is what we ’ ve been doing well since 2009, and it is what continues to inspire us. thank you for your attention and i wish you an excellent conference. 3 / 3 bis central bankers'speeches

and tough financial supervision. it is easy to underestimate this achievement. the idea was adopted less than two years ago. the single supervisory mechanism is now up and running. there is no example in contemporary european history when so much has been achieved in so little time. 2. we have launched a tough and comprehensive aqr and subsequent stress tests that should be completed by the end of this year. for the first time, these exercises will be conducted in a fully integrated way – under the aegis of the ssm – with full accountability of the results. completion should mark a turning point where there will be no more doubts about the sustainability of our banks and credit should resume at a normal pace. 3. in the longer run, a major policy challenge for the euro area is to “ reinvent ” a new and robust financial integration model. we need sound cross - border capital flows, bis central bankers ’ speeches because we do not want the eurosystem to intermediate permanently between borrowers and lenders from different countries. developing a safe securitisation process should be a priority, despite the major technical difficulties. ii / – is europe facing the prospect of a lost decade? questions about long - term growth are not limited to europe. what we hear about our continent reflects a more general concern : the possibility of “ secular stagnation ” in advanced economies. larry has launched this crucial debate. i don ’ t know whether he was thinking specifically about europe, but, of course, this question is very relevant for us. secular stagnation rests on the assumption that the natural interest rate is negative. this may happen for two reasons : • in the short run, we may have a downward shock on demand and an increase in savings resulting from the deleveraging process. i have just explained how we are currently addressing this issue. • in the longer run, ageing and slower innovation may push up saving rates and bring down the return on capital. therefore, the ultimate response to the risk of secular stagnation is to improve the return on investment, thus pushing the natural interest rate back into positive territory. again, this is not only a european problem. but we do have difficulties in this regard. structural reforms are not easy. many, however, are currently being implemented. italy is abolishing its provinces, generating savings that will allow for a reduction in taxes and liberalising its labour market. france is on the same track and has reduced taxes on its labour costs as