I thus welcome the ongoing discussions on making the ESM more effective, as also advocated in an ECB opinion on the subject2. Last but not least, completing the banking union and building an ambitious capital markets union are essential.
If we want to avoid repeating the mistakes of the past, it is crucial to strengthen the resilience and integration of the financial sector, thereby also improving the transmission of our monetary policy. Of course, the policy agenda I have just outlined would support the ECB’s monetary policy. However, its benefits would not end there.