concretely – and with great enthusiasm – to ensure that banks and insurers better integrate climate change risks and promote green financing. and we must, as christine lagarde told the european parliament, take climate change into account in monetary policy : i made proposals in this respect. 2. 4 a new model to renew multilateralism european integration is based first and foremost on a method : multilateralism and cooperation. these are no longer very fashionable terms, but we must use them without wavering. nationalist escalation does not provide solutions for the major issues facing citizens. we still need to re - establish multilateralism on the basis of three convictions stemming from our european experience, with its limitations : page 9 of 10 - an agenda that meets people's expectations : more inclusive growth, and the protection of common public goods, starting with the climate - an ability to decide and act comprehensively with regard to a few wellidentified projects, rather than discussing everything, at too much length. - a distinction between the independence of states – which may be formal – and real sovereignty on key issues. emmanuel macron was among the first who dared to advocate a " european sovereignty ", which is still an oxymoron for many, who only dream of national sovereignty. but it is this common sovereignty that mario draghi promoted in a speech in bologna last february, stressing that : “ independence does not guarantee sovereignty " and that " countries need to work together to exercise sovereignty. ” xxv let me give you a testimony : this is what we have achieved with the euro. it is never easy – we have cultural differences, including economic differences. but we are proud to have created together a sovereign currency, globally respected, with popular support – 76 % of citizens are attached to the euro – and a federal institution – the eurosystem, consisting of the ecb and the 19 national central banks – which is undoubtedly the one that works the best in europe. * * a social, environmental and multilateral model must now be europe ’ s message to the world. i do not underestimate any of the difficulties involved : we must first manage today's threats. we must involve and convince the citizens, who too often fear that more economic integration threatens their european social model, when conversely it would strengthen it : we should state much more clearly our commitment to these common " fundamentals ". finally, we must have the courage to assert our values openly. but i will

sciences po paris – paris, 18 september 2019 inaugural lesson at the paris school of international affairs, by francois villeroy de galhau governor of the banque de france what economic sovereignty for europe? facing the threats with lucidity, and boldly seizing an opportunity press contact : mark deen ( mark. deen @ banque - france. fr ; 06 88 56 54 03 ). page 1 of 10 mr director, dean ( dear enrico ), ladies and gentlemen, teachers, dear students, it gives me great pleasure to speak before you today. i follow in the footsteps of several ministers of foreign affairs, including jean - yves le drian and nathalie loiseau. caro enrico, thank you for your invitation, knowing this makes me feel all the more grateful and honoured! the decision to switch from diplomats to a central banker such as myself perhaps sends out three signals. first, rarely have geopolitics and economics been so closely intertwined. faced with the rise in protectionist tensions and the verbal volleys, which unfortunately intensified again this summer, some even say that economic interdependence – the “ sweet ties of commerce ” praised by montesquieu – is the only thing still shielding us from military conflict. conversely, rarely has a global economic slowdown been so clearly attributable to political causes : nearly everywhere, public policy instability and uncertainty are on the rise and are damaging private sector confidence ; i shall come back to this. second signal : rarely have central banks been called upon to do so much. i ’ m not going to bore you with a lesson on the technical delights and subtleties of monetary policy. let ’ s just say that we have a central mandate – price stability – and a main instrument for achieving this – the short - term interest rate. but for the past ten years, since the great financial crisis, we have been using new instruments : quantitative easing ( qe ), forward guidance i and even negative rates. these non - standard policies have been effective ; but they can also create the – mistaken – illusion that monetary policy is omnipotent. third signal : rarely has europe appeared so necessary and at the same time so divided. i am a french and european official, i was in maastricht 28 years ago to launch the euro ; every two weeks i take part in meetings of the ecb governing council which manages the currency. i stand by this conviction in europe and in the belief