overheating, it is first of all required that, apart from those already decided on, no further fiscal impulses should be provided ; phrased differently, higher - than - expected revenues are to be reflected in lower public debt levels. second, moderate wage movements are to be ensured. even then, the new tax system for 2001 will boost average purchasing power by 4 % or even more, representing a powerful stimulus for consumption. many commentators view the new millennium as the start of a “ new economy ”. ict developments will undoubtedly have a major impact on world economic performance ; still, there is no indication whatever suggesting that economic laws have become fundamentally different. for this reason, and in order to be able to benefit to the full from the renewing economy, we must continue the structural reform policies ( further improving the operation of the labour market, especially on the supply side, and of a number of product markets ). more in general, policies must remain geared towards the achievement of well - balanced global macro - economic conditions ( low inflation, more equilibrated balance - of - payments positions ). we may well count our blessings, but should not close our eyes to reality.

steven maijoor : managing climate and environmental related risk stepping up the pace speech by mr steven maijoor, executive director of supervision of the netherlands bank, at the morningstar sustainable investing summit 2023, amsterdam, 12 october 2023. * * * i was with my family in greece for the summer holidays. one evening we walked through a street in athens with restaurants lined up along the street, and there was a man trying to lure tourists into his restaurant. when he approached us i told him we had other plans, but somehow i wanted to know how he was doing. so i asked him. and what i did not expect was that he started ranting, a complete stranger, about how the summers had become unbearably hot, and that the number of tourists was already declining as a result. he was very depressed about the whole situation and he confided in me that he was seriously considering moving to norway. i was shocked and sad because i saw he really meant it. and the hard truth hit home again that the climate crisis is here and now, and it is affecting the lives of real people. and on top of that, it is affecting our economies. and when it affects our economies, it affects our financial sector as well. financial institutions are exposed to climate and environmental risk. think for instance about the risk of a flood in the western part of the netherlands. don't forget we are below sea level here. serious flooding could increase a bank's credit risk following damage to collateral such as houses and other buildings. and this would then require a bank to draw on its capital reserves. that's what we call physical risk. and then there is transition risk as well. transitioning to a net - zero society will likely lead to adjusted or new government policies. it could also lead to technological advances, or changes in market sentiment and market preferences. the transition to a net - zero economy creates risk for financial institutions that are highly exposed to sectors of the economy that are unprepared. governments, for example, could impose higher taxes on greenhouse gas emissions. as a result, the revenue of an energy - intensive company could decline. and this could impact the company's creditworthiness and its ability to repay outstanding debts to banks. physical and transition risks are not only related to climate change. financial institutions are also exposed to risk stemming from the degradation of nature, and actions aimed at preserving and restoring it. nature provides services that are essential