In addition, climate scenario analysis may need to consider interdependencies across the financial system. Banks and other financial institutions often rely on insurance and other hedging strategies to reduce potential losses.
10 There are, of course, notable differences across euro area countries. 11 See Cœuré, B. (2018), “Taking back control of globalisation: Sovereignty through European integration”,  contribution to the 2018 Schuman Report on Europe, 28 March; and IMF (2018), “Manufacturing Jobs: Implications for Productivity and Inequality”, World Economic Outlook, Chapter 3, April.