elsewhere in the world. while europe is relatively heavily exposed to fragmentation, on the positive side, we also have unique opportunities to deal with it as we are still far from having exhausted the full potential of our internal integration. therefore, as an economic antidote to global fragmentation, we should strive to further deepen the european single market. by removing the remaining internal barriers, for example, we would boost the mobility of labour and capital, and make it easier to transition to new technologies. second, by completing the capital markets union, we would help to mobilise much - needed funding for the eu's enormous climate and digital investment needs. to this extent, together with the dutch authority for financial markets we recently joined an increasingly impatient chorus of authorities having published a position paper containing concrete priorities and recommendations. finally, by completing the banking union, we would stimulate pan - european banking competition and allow bank capital to be used more efficiently. we do not only need to strengthen the internal market. we also need to find a balance between autonomy in strategic areas such as defence, healthcare and energy, and we must maintain a multilateral mindset. it is common sense that europe should protect its strategic interests and cut down on dependencies it doesn't want. but while doing this, policymakers should strive to protect free trade and not undermine the internal market. we should therefore be selective in our policies to increase strategic autonomy. and the eu should make a strong stand for maintaining and supporting the multilateral rulebased system that has brought us stability and growth. the people of ghent knew the perils of geopolitics. during the hundred years'war between england and france, trade with england suffered greatly. we too live in a time where war has come close to our borders, and geo - economic fragmentation is increasingly a reality. yet, even in this new geopolitical reality, policymakers can seek pragmatic solutions that minimise the economic costs of fragmentation. we should do our utmost to find these solutions. because just as we need to protect ourselves, we also have to protect the free flow of goods, services, investment and knowledge. things that are fundamental to economic growth and the prosperity of billions. 4 / 4 bis - central bankers'speeches

introductory remarks by dnb president klaas knot at the press conference for the autumn 2020 financial stability report welcome to the press conference on the financial stability report ( fsr ). before we start taking questions, let me briefly walk you through the main elements of our fsr. as in the spring, the main focus of this report is – of course – the impact of the coronavirus crisis on financial stability. this crisis has now been going on for more than six months and the feared second wave of infections is now a reality. where do we stand in this crisis and how has the financial sector fared so far? let me say a few things about that. first, uncertainty about the economic impact of this crisis remains as substantial as before. the dutch economy has so far contracted somewhat less than we feared in the spring. but the resurgence in the number of infections has fuelled renewed uncertainty, as new measures seem necessary, but also because consumers and entrepreneurs are becoming more cautious. a proper assessment of the total economic damage will only be possible once the virus is under control. and it is important to stress once again that the economy and health are not in a zero - sum game. even without measures the economy will be hit. it is therefore of the essence that everybody contributes to containing the virus. that is in the interest of our health, but also in the interest of the economy. an important – and positive – observation is that the financial system has so far proven resilient. that is of course partly due to the fact that this crisis originated outside the financial system. in that sense it is completely different from the credit crisis, when the problems started in the financial sector itself and spilled over to the economy. we can also see that the reforms undertaken after the credit crisis are bearing fruit. banks are therefore starting in a much better position, so they are better able to dampen the impact of the coronavirus crisis. governments, central banks and supervisory authorities have introduced very large - scale measures to curb damage to the economy. it is still too early to evaluate these measures, but the interventions have clearly restored a degree of calm to the financial markets. the measures also directly and indirectly help ensure that the financial sector can continue to fulfil its role effectively. but a large part of the economic impact is yet to manifest itself. when the government measures – such as the now scheme and tax holidays – are scaled back and bank moratoria expire, bankruptcies will rise. so