severe demands on the flexibility of a country ’ s economic policy. the reason for this is that the adoption of a stable currency alone cannot guarantee market confidence on a lasting basis. it is precisely because domestic and external monetary policy will disappear as an option for absorbing undesirable internal and external influences that it is particularly important to maintain in the long term the efficiency of the domestic banking sector, sound public finance and the flexibility of the labour market. the introduction of the dollar therefore requires both a comprehensive economic cost - benefit analysis and a very broad political consensus which takes account of the longer - term national and international implications of such a step. the success of a fixed exchange rate system or of a floating system as well as the adoption of an anchor currency are all dependent on the consistency and credibility of domestic economic policy. when financial markets are strained, short - termism may present those responsible for monetary policy and exchange rate policy with a dilemma. while an increase in interest rates does stabilise the exchange rate up to a point and hence asset prices, too, it can result in a virtually unbearable interest rate burden if short - term debt is substantial, and vice versa. in my opinion, the only effective means of countering the general trend towards short - termism is pursuing a medium - term - oriented stability policy that induces investors to make longer - term investments. c ) regional integration with globalisation and economic recovery at the beginning of the nineties, the integration process in latin america was also given a fresh impetus as a means of economic and political consolidation. there is no doubt that mercosur has been the most important factor at the regional level. within a short period a customs union has been developed among the member states which in the long term is to be extended to form a common market. encouraging interregional and intra - regional trade in the sense of an open regionalism is playing a major role in achieving greater integration. it can make a crucial contribution both to regional and global stability. the creation of a free trade area between mercosur and the eu will contribute greatly to this. its rapid establishment was strongly recommended by entrepreneurs from both regions at the first mercosur / eu business forum in rio de janeiro at the end of last month. i would now like to report on the lessons we have learned so far from the european integration process. 5. european integration a ) european monetary union : a new scenario for all parties the process of regional economic and political integration that began in europe

the impact of social media. 5 for our part, we have been working at international level with the basel committee on banking supervision ( bcbs ) 6 and the financial stability board7 to assess what can be learned from the recent events. we have also helped to define the bcbs standard for the prudential treatment of banks'crypto - asset exposures. 8 your role as co - legislators will be crucial in keeping our framework robust. 2 / 4 bis - central bankers'speeches first, your role is vital in fully implementing the final elements of basel iii faithfully and without delay, as this best guarantees the safety of our banking system. we are very concerned about the numerous deviations from the basel standards introduced in the eu banking package and think they should be avoided. second, we need to swiftly implement in eu law the aforementioned bcbs standard for the prudential treatment of crypto - asset exposures. we need to be ambitious and make rapid progress, in particular on the envisaged exposure limit to reduce contagion between crypto and banks. third, it is imperative that we complete the banking union – the european commission's proposal on crisis management and deposit insurance is an important step towards this goal. conclusion let me now conclude. we are going through a period of high uncertainty marked by a sequence of economic and geopolitical shocks and trade fragmentation. the best way to protect stability in the eu is to ensure closer european integration and a solid regulatory framework. in the coming twelve months before this parliamentary term ends, we can make tangible progress on some key dossiers. first, on fiscal policies, we very much welcome the commission's legislative proposals for the reform of the eu's economic governance. a well - functioning governance framework is essential from an economic, monetary and financial stability perspective. second, on financial sector policies, we need to make progress on the basel iii reforms, crypto - asset standards, and the crisis management package – along the lines just outlined. third, on banking union, the lack of a european deposit insurance scheme is a source of vulnerability ; completing the banking union is essential to pave the way for a stronger and more prosperous europe. thank you for your attention. i now stand ready to take your questions. 1 annual report 2022. 2 feedback on the input provided by the european parliament, as part of its resolution on the ecb annual report 2021. this feedback statement, published on the occasion of the presentation of the ec