ATHENS – The European economy needs greater and wider fiscal integration, completion of banking union and creation of a real capital markets union to deal with the new big challenges posed by climate change and the green transition, with their increased investment and financing needs, Bank of Greece governor Yannis Stournaras said on Tuesday.

Addressing the Economist “Seventh Sustainability Summit for SE Europe and the Mediterranean” conference, the central banker noted that Europe should not wait until political conditions in the Eurozone mature before moving forward. For example, he noted that the capital markets union was already ready to be implemented, along with European Commission’s proposals to manage banking crises and the European savings guarantee system. Stournaras said that risks related with the climate were a source of instability and vulnerability for the financial system as they could affect monetary policy and create turbulence in price stability, adding that central banks were adopting specific pre-emptive measures to protect price stability and together with supervisory authorities to ensure that the financial system was resilient to those risks. He reiterated that the current situation of multiple crises should not slow down global efforts to achieve sustainable growth.