This is particularly true for European policy, in the context, for example, of the recently approved European recovery fund (Next Generation EU).14 The spending and investment arising from the use of this fund for projects capable of transforming our economies and for financing reforms to raise their sustainable growth capacity, will be fundamental to consolidate the economic recovery and reduce the potentially permanent consequences of the crisis. More in the medium term, it is crucial that this fund be converted into a permanent, common fiscal stabilisation instrument for the euro area. This would allow a joint fiscal response to macroeconomic shocks and provide a larger 12  See Box 2 of the “Quarterly report on the Spanish economy", Economic Bulletin, 3/2020, Banco de España, for a description of this announcement, and an assessment of its effects on the financial markets. 13 In this respect, see P. Hernández de Cos (2019); “the European economic policy response to a scenario of lower growth and inflation", the Governor’s closing address for the La Granda courses. 14 For an analysis of the impact on the financial markets of the various milestones linked to the EU recovery fund, see Box 5 of the "Quarterly report on the Spanish economy", Economic Bulletin, 3/2020, Banco de España. See also Arce et al. (2020) and Box 3.4 of the 2019 Annual Report of the Banco de España for a discussion of the role of fiscal policy coordinated at European and international level in the current context.
I am grateful to Sarah Breeden, Jon Cunliffe, Lee Foulger, Karen Jude and Ali Moussavi for their assistance in helping me prepare these remarks. 1 For more on resilience and its importance in recent times, see Markus K. Brunnermeier, “The Resilient Society”,  Endeavour Literary Press, 2021  3/3  BIS central bankers' speeches