Sleijpen: Europe races clock for Savings and Investment Union
Olaf Sleijpen, President of De Nederlandsche Bank, urged Europe to accelerate its journey towards a Savings and Investment Union. Speaking in London, he emphasized the urgent need for reform amidst powerful global challenges.
Europe's race against time
De Nederlandsche Bank President Olaf Sleijpen likened Europe's pursuit of a Savings and Investment Union to Phileas Fogg's race against time, emphasizing that this journey is far from leisurely.
He highlighted several powerful trends demanding urgent action: geopolitical threats from Russia and China, difficult relations with the US, an aging population, climate change adaptation, and lagging productivity growth.
Sleijpen stressed that while the Savings and Investment Union is not a panacea, it is a crucial component for making the European economy more dynamic, productive, and competitive.
He underscored the significant prosperity at stake if Europe fails to act decisively on capital market reform.
Pragmatism and cross-Channel cooperation
Sleijpen criticized Europe's slow pace in capital market reform, contrasting it with the rapid progress in European rearmament.
He argued that Europe is not acting with the urgency of a race, unlike Phileas Fogg.
Instead of waiting for perfect harmonisation on complex issues like insolvency or taxation, Sleijpen advocated for focusing on impactful and achievable measures.
He supported the European Commission's current four-pillar approach, targeting supply and demand sides, market infrastructure, and supervision.
Sleijpen also stressed the importance of involving the United Kingdom.
Brexit meant the EU lost its deepest capital market, making internal integration even more vital.
The UK's experience, particularly with automatic pension enrolment, offers valuable lessons for deepening capital markets.
No hidden time gains
Europe cannot rely on a last-minute miracle or hidden time gains, as Phileas Fogg did.
The challenge demands a greater sense of urgency, pragmatism, and determination across countries and institutions.
Ultimately, the solution to Europe's shared challenge must also be a shared one, including cooperation across the Channel.