And second, we need to transform our economies as structural changes speed up around us. We must redirect activity towards the green and digital sectors as quickly as possible, which will help raise Europe’s growth potential.2 Addressing these challenges is important for the ECB, as they affect the transmission of our monetary policy across the euro area.
They require parallel efforts on many different fronts. But a common thread is the need to enhance the contribution of the financial sector, in particular by taking significant steps towards a capital markets union in Europe. Integrated capital markets are at the heart of building resilience, because they encourage Europeans to invest in debt and equity irrespective of home country considerations.