of the ecb's transmission protection instrument provides an important backstop against expectation - driven self - fulfilling debt crises. it allows for a clearer separation between market stabilisation and policy stance goals. it broadens monetary policy space and enhances the efficiency of stance - related policy actions. again, the transmission - protection instrument does not dispense the adoption by member states of the sound and credible fiscal policies. 3 / 4 bis - central bankers'speeches today's highly uncertain environment requires also agile policymaking ; policies that adapt rapidly to changing circumstances. however, the current inflationary context is more challenging in this respect. we should be aware of our mandates and acknowledge each other's responsibilities and limitations. within the specific mandates and without prejudice to independence, there are strategic complementarities between the actions of fiscal authorities, supervisors and central banks that can and should be explored under the right conditions. let me throw a challenge : finance ministers and central bankers must come together – physically – to communicate at once how we see each other achieving more efficiently our necessarily common objectives. we will not hesitate one single moment in order to achieve those ; it is the price, the trade - offs, that we have to face that must be discussed and minimized. follow upon the legacy of the founding fathers of the european project, it is crucial that we – policy makers – keep on building bridges. as amanda gorman so nicely put it for the us, we are not striving to form a union that is perfect, we are striving to forge a union with a purpose. thank you. 4 / 4 bis - central bankers'speeches

, central banks can also contribute to greening the economy. in principle, all areas of activity within our competence can be adjusted to become greener. at the bank of lithuania, we believe that in order to change the world, we must first change ourselves. sustainability is one of the strategic objectives of the bank of lithuania. our goal is a green bank and sustainability in all areas of our activities, be it public procurement or the financial assets investment portfolio of the bank of lithuania, which we are restructuring to completely meet all the principles for responsible investing. regarding external sustainability, the direction of the bank of lithuania that is pointed towards greening of the financial sector, i would like to mention some priority areas that contribute to attaining our goals. 3 / 5 bis central bankers'speeches first, it is necessary to effectively manage risks related to climate change and elements of sustainability. i mean the environmental, social and governance risks that are usually referred to as the esg. both the physical climate risks of draughts, floods and other similar cataclysms, and the risks related to the period of transition towards a new model of sustainable economy must become an integrated part of the financial stability monitoring efforts. the second objective is integrating the esg risks into the supervision of financial market participants, by identifying climate change - related risks that are relevant to them and by integrating the green aspects into all the stages and actions of supervision. it means that the green criterion will be considered when conducting business model analysis, assessing compliance with the capital and liquidity requirements, stress testing and in other supervision exercises. moreover, one of our priorities is making sure that funding is available, sufficient, and focused on greening the real economy. particular attention must be paid to the small and medium - sized firms, the smes, which are the backbone of our economy. finally, the monetary policy. two months ago, the european central bank concluded its review of the monetary policy strategy. one of the outcomes of the review is a strong commitment of the european central bank to continue integrating climate change aspects into the monetary policy framework. it means that sustainability will be included into monetary policy operations in fields of information disclosure, risk assessment, collateral framework, and asset purchase programs. nevertheless, sustainability is a new field for central banks that poses many challenges. that is why i highly look forward to hearing the remarks by a colleague from the central bank of the netherlands, a member of the governing board, olaf sleijpen, on standardising climate change