The Max Watson Memorial Lecture

Mr Regling will appear virtually

Mr Regling will reflect on the unfinished agenda for reinforcing the euro. The euro has been a strong second international currency to the dollar since its inception and has regained much of the influence lost in the global financial crisis. A multipolar currency world, with the euro and renminbi serving as coequal alternatives to the US dollar, would contribute importantly to global financial stability. But first, to buttress the euro. Europe needs to address the fragmentation in its financial markets and capital markets to enhance liquidity and deepen markets. The euro area also needs more economic risk-sharing, via cross-border investment and a common fiscal capacity backed by a safe asset. While progress has been striking in some areas during the pandemic, much remains to be done to achieve banking union and capital markets union.