On 12 October, Prof. Arnoud Boot of the University of Amsterdam and member of the Scientific Council for Government Policy (WRR), presented the report ‘Samenleving en financiële sector in evenwicht’ (‘Balancing society and the financial sector’) to the Dutch Finance Minister, Jeroen Dijsselbloem.
Following a multi-year study on the relationship between society and the financial sector, the WRR advises the Dutch government to reduce the vulnerability of society to stresses in the financial system. Society and the real economy have become overly sensitive to the procyclical impulses of the financial world.
Recommendations particularly address the negative repercussions of the rigid Dutch pension system, high mortgage debt, the vulnerability of citizens' households, small businesses, and semi-government institutions.
With respect to the financial sector, the WRR advises further strengthening of the banking sector and facilitating greater diversity to reduce dependence on just a few banks.With this combined focus, the resilience in the Dutch economy will greatly benefit, augmenting its growth potential.
A video of the presentation (in Dutch) can be viewed below.
The report itself and more information on its conclusions and recommendations to the Dutch government is available through the links below.