The relationship between the government and the financial sector

The next three to four years will be decisive for the relationship between the government and the financial sector at both Belgian and European levels. Crucial decisions will be made that will profoundly influence the economic future of Belgium and Europe. These decisions concern shareholding, regulatory framework, taxes, but most importantly, the mindset regarding the financial sector. This mindset needs to change if we want to develop a competitive financial sector on a global scale. 

This report highlights the need to shift focus from stability to competitiveness, while maintaining the necessary balance. 

The government and the financial sector are mutually highly dependent on each other. This dependency has—at least in Belgium—only increased in recent years, contrary to what is commonly believed. The mutual dependency can be described on five levels. 

Today, there is an urgent need for a new balance in the thinking about the financial sector. In addition to a continued emphasis on stability, the competitiveness of the financial sector itself must be more prominently highlighted and prioritised. Only then will we be able to realise the objectives of the EU Transformation Agenda. 

The report describes the outlines of a new European banking landscape and the actions necessary to achieve it. We invite you to explore the report and connect with us for further discussions.