Sleijpen outlines central bank tasks for stability in fragmented world
Olaf Sleijpen, Executive Director of De Nederlandsche Bank, emphasized the critical role of central banks in maintaining stability amid increasing global fragmentation. Speaking at the Financial Study Association Groningen Congress on March 3, 2026, he called for greater European unity and resilience.
Unity as Europe's shield in a fragmented world
Olaf Sleijpen, Executive Director of De Nederlandsche Bank, underscored the urgent need for European unity in a dramatically changing global landscape.
He noted the rapid disappearance of the post-war world order, replaced by fragmentation, trade tariffs, and the weaponization of critical resources, creating increased uncertainty and risk for open economies like the Netherlands.
Sleijpen highlighted strengthening resilience as a key response, advocating for reduced dependence on foreign suppliers in critical areas like digital services, energy, and defense through strategic autonomy.
This does not imply turning inward, but rather forging new partnerships, citing free trade agreements with India and Mercosur as examples to diversify dependencies, a crucial principle of sound risk management.
Unlocking Europe's untapped growth potential
Europe must boost its economic growth, which has lagged behind major economies like the US and China.
This growth is essential to preserve the European way of life and finance transitions such as the energy shift and AI innovation.
Sleijpen advocated for deepening the European single market by removing remaining barriers to the free movement of goods, services, people, and capital.
An ECB analysis estimates these barriers are equivalent to significant tariffs, indicating substantial untapped potential.
Integrating capital markets is also crucial, as Europe lacks a deep, liquid market for risk capital.
An IMF study suggests structural reforms and a unified internal market could boost productivity growth by up to 20 percent.
Stability's new frontiers demand vigilance
Sleijpen's address effectively broadens the central bank mandate, highlighting critical new frontiers for stability like cyber resilience and crypto regulation.
His call for European unity is a pragmatic recognition that fragmented national responses are insufficient against global threats.
This forward-looking perspective underscores the evolving demands on central banks, requiring constant adaptation and international cooperation.