Democratic politicians in the US recently asked voters to rank their priorities by making a choice between two proposals. Each time, they had to choose between ‘making ends meet at the end of the month’ and a number of other concerns: cost of living came ahead of all other concerns, even abortion or the defence of democratic institutions. Only health was rated higher. This should not come as a surprise to observers of the political scene on both sides of the Atlantic, as time and again candidates who took up the role of champions of household budgets have beat incumbents who had the ill fortune to be in power in times of inflation. The political relevance of the issue is self-evident.

Europe today finds itself at a critical juncture as it faces historic challenges, from an ageing population and the green transition to war at its doorstep and intensifying global competition. Meeting these challenges will require more than policy declarations. It will require money and the ability to mobilise it, channel it, and multiply it. In short, it requires a strong, competitive and autonomous financial system. Unfortunately, that is not what we have.

Respecting and enforcing fundamental rights and the rule of law are key elements in mutual trust between Member States. Investment and trade within the internal market can only work if all economic operators abide by the law and can rely on structures and behaviors by public authorities that respect the rule of law.