Wellintegrated euro area financial markets, and well-diversified asset portfolios, decrease the extent to which the saving and spending decisions of firms and households depend on economic and financial developments in a specific country, region or sector. As a consequence, credit and risk-sharing channels are increasingly contributing to attenuate the impact of shocks within a specific euro area country or sector.
That is why we must set climate change-oriented targets that are even more ambitious than those set in the Paris Agreement. The European Union (EU) is leading in this field: the transition to a climate-neutral economy is a priority objective for the EU, and the green policy is being integrated in multiple fields. The European Commission has published the European Green Deal.