onbekende naam voor documenteigenschap. first, private risk - sharing between member states should be strengthened. this involves completion of the banking union, by means of a european deposit insurance scheme. furthermore, i look forward to new european commission ’ s proposals to move towards a capital markets union. the potential contribution of these initiatives is multifaceted. in successful monetary unions they bear the brunt of any adjustment to asymmetric shocks, thereby relieving the burden from public sector stabilization policies. they will foster more efficient and sustainable cross - border financing flows, that will support potential growth throughout the euro area. and they will contain the risk of future imbalances. my second recommendation : it would be beneficial if future monetary and fiscal policy would, more so than in the past, move in the same direction. there is mounting evidence that monetary policy can reach it goals faster and with fewer side effects if it is aligned with fiscal policies. the combination of a unidirectional fiscal and monetary policy reaction to changes in economic conditions, can create an environment where both public and private investment can bolster economic recovery and support the growth potential. and thirdly, i should note that, at least at the current juncture, the emu ’ s design remains a compromise between limited risk - sharing and a large degree of individual control and hence accountability. this implies that member states will remain subject to market discipline. and this places a distinct responsibility on the shoulders of member states, to create the preconditions that enable their economies to flourish within the emu framework. judging by various measures of economic competitiveness, including ease - of - doing - business and strength of the legal system, structural and institutional reforms remain necessary to stimulate potential growth. so in short, it is all about addressing institutional imperfections within emu, improving the consistency between fiscal and monetary policies and kick starting structural economic reforms in member states. notwithstanding the political intricacies of these issues, they can only be solved with credible commitment from public policy makers. such commitment would enable the emu to start reaping the economic benefits today from solving the issues that we know we will be facing tomorrow. or in terms of the proverbial can : picking it up today will save us cleaning up an undoubtedly bigger clutter in the future, while living in a tidier place in the meantime. and on that positive note i would like to end my introduction. * * *

##lateral approach to financial stability that until now has proven very effective. this was best demonstrated by the g20 reforms following the great financial crisis. these reforms have served the financial system well during the covid pandemic. greater resilience of major banks at the core of the financial system has allowed the system to absorb, rather than amplify, the economic shock. without the g20 reforms, governments would now have to deal with a crippled banking sector in full deleveraging mode, on top of an economy hit by covid restrictions. we would have had a crisis within a crisis. in my view, this success is in large part thanks to the g20 ’ s commitment to dealing with global challenges together, and to the fsb ’ s broad membership, its agility and its engagement with other stakeholders. we will need to fully use these strengths, to which i will return later on, if we want to tackle the new financial stability challenges successfully. so let me now discuss the nature of these challenges and what it means for the work of the fsb in the coming years. a big challenge for policy makers worldwide at this moment is navigating their economies out of the covid pandemic. two years after its onset, the economic fall - out of the pandemic appears to be subsiding, and the extraordinary fiscal and monetary support measures that kept economies 1 / 4 bis central bankers'speeches afloat are being gradually unwound. but as the economic recovery is proceeding at an uneven pace across regions, this unwinding process is increasingly likely to be asynchronous. this creates the potential for cross - border spill - overs. moreover, since the onset of the pandemic, both public and private sector debt have increased, while asset prices have grown amid a search for yield. this has made the global financial system more vulnerable to a disorderly tightening of financial conditions — a concern that has been accentuated lately by the return of high inflation. the fsb is monitoring and analysing developments closely and stands ready to facilitate global coordination of financial policies, where necessary, to minimize the risk of a disorderly exit. this is being underpinned by the fsb ’ s new financial stability surveillance framework. the framework enables us to identify global financial vulnerabilities in a systematic manner. it draws on the collective expertise of the fsb ’ s broad membership. it places particular emphasis on incorporating multiple perspectives in the identification and assessment