We are witnessing a rapidly shifting geopolitical landscape, but also enduring major structural challenges to our economic model.

Europe’s response must be swift. It should focus on spurring investment, fostering innovation and raising productivity. This will require bold policy action and, together with the new European Commission and the Council, this Parliament will have an important role to play.

In my remarks today, I will discuss an important element of this response – the new economic governance framework – which you have chosen as one of the topics of this hearing. But I would like to start by updating you on the ECB’s assessment of the euro area economy and our monetary policy…