Sleijpen urges market integration to strengthen policy transmission
Olaf Sleijpen says Europe's fragmented markets impede monetary policy transmission across diverse economies. At De Nederlandsche Bank's Annual Research Conference in Amsterdam, he called for deeper capital markets, fiscal resilience and a stronger single market.
One rate meets unequal economies
Opening De Nederlandsche Bank's (DNB) 29th Annual Research Conference, Olaf Sleijpen said one monetary policy serves around 360 million people across 21 countries.
Households differ in income, wealth, debt, housing and job security.
DNB research identifies labor income, asset prices and interest payments as transmission channels whose relative effects vary across households.
Firms' productivity, leverage and financing structures also shape their investment response to rates.
Countries differ in fiscal space, housing markets and banking systems.
Preliminary October 2026 inflation estimates were 3.3 percent in the Netherlands and above 6 percent in Lithuania.
Sleijpen said inflation remained too high across the euro area.
Three foundations for diverse economies
Sleijpen called for deeper European capital markets to broaden corporate funding, improve private risk-sharing and direct savings toward productive cross-border investment.
Strong public finances give governments room to absorb shocks, while credible fiscal frameworks help prevent sovereign debt concerns from disrupting monetary transmission.
A stronger single market would ease movement of goods, services, capital and labor.
His aim is not identical economies, but fewer barriers to adjustment and more effective transmission of common monetary policy.
Diversity is not the obstacle
Sleijpen distinguishes economic diversity from barriers that prevent adjustment.
His priorities put market integration and fiscal resilience alongside monetary policy transmission.
The speech advocates stronger common foundations rather than uniform national economies.