Netherlands' De Nederlandsche Bank published introductory remarks for the presentation of its 2024 Annual Report, with President Klaas Knot and Executive Board members outlining policy priorities under the theme of “robust policies in an uncertain world”. The remarks link heightened geopolitical risk, the prospect of trade tariffs and higher defence spending to a call for stronger European cooperation, forward-looking domestic policy and buffers that protect price and financial stability. On defence, the remarks argue for greater EU coordination, including joint procurement, and make the case for a temporary and limited exemption from budget rules for additional defence spending while maintaining sustainable public finances. The speech also points to the need to strengthen the European single market and integrate capital markets, and calls for Dutch fiscal policy that does not add to inflationary pressures, noting that inflation in the Netherlands has been higher than the euro area average. On financial regulation, DNB favours simplifying and further harmonising EU rules, including streamlining European supervisory authorities’ technical standards and guidelines, while explicitly distinguishing simplification from deregulation and warning against relaxing Basel III capital requirements. Supervisory priorities highlighted include a more risk-based, data-driven approach to anti-money laundering to avoid undue burdens and discrimination, progress in the pensions transition with four funds receiving positive decisions on conversion notifications and around 40 partial assessments completed, and the use of DORA to reinforce cyber resilience through advanced testing, building on TIBER and a more flexible ART approach. The remarks also back European payment initiatives such as Wero and advocate introducing the digital euro to reduce reliance on non-European payment infrastructures and provide a crisis back-up, alongside plans to factor global tensions into DNB’s own investment policy. Knot noted that his second term as President will end on 1 July, and DNB expects at least 40 pension funds to convert to the new system within a year as it refines its assessment process based on early transition experience.
De Nederlandsche Bank 2025-03-20
Netherlands' De Nederlandsche Bank urges robust policies and supports Basel III implementation, DORA resilience testing and the digital euro
De Nederlandsche Bank's 2024 Annual Report emphasized robust policies amid geopolitical risks, advocating stronger European cooperation and fiscal policies that avoid inflationary pressures. The bank supports simplifying EU financial regulations without deregulation, enhancing anti-money laundering measures, and advancing the pensions transition. It also backs European payment initiatives and the digital euro to reduce reliance on non-European infrastructures.