agenda, but centrist political parties must must parties political centrist but agenda, the on not is Nexit (levies). taxes European of forms towards steps taking and is debt common issue states, member to grants out hand to have decided leaders government European that now reassessed be have to may pragmatism This Union. European but critical a taken traditionally has The Parliament 2018 – /European © Flickr.com part of the Dutch EU policy options, writes writes options, EU policy Dutch of the part become may have to Opt-outs integration. European towards limits consider to able be recovery fund recovery EU coronavirus from the opt-outs choose can How Netherlands the 2020 SEPTEMBER accommodating stance accommodating in the in the are there? The Dutch government has been been has government Dutch The there? are alternatives what in sight, are of integration limits the when And integration. European towards go to wants far it how itself ask to Netherlands for the coming is time The outs opt consider to up acommittee set now will and account into of opt-outs his suggestion Dutch The Clingendael. with associated scientist and political economist the Schout, Adriaan Professor . Parliament did take did take Parliament

Adriaan Schout Clingendael Alert Clingendael Alert

wrestling with these questions for a long Commission for support. The Commission time. Prime Minister Mark Rutte initially must also demand reforms, but there is chose not to define a vision of the European widespread doubt about the supervision Union, arguing that vision was a matter of reforms by the politicised European for ophthalmologists. Subsequently he did Commission, particularly in the case of proffer a vision, which is incorporated in the large countries such as France and Italy. coalition agreement: no increase in the EU The common debt may be funded through budget, no common debt, and if countries types of European taxation. Initially there need support from the European emergency will only be a levy on plastic (formally not a fund (ESM), they must meet ‘clear’ require­ tax), but the EU is looking closely at direct ments. The Netherlands is maintaining the European income (taxes) in order to free no-bail-out stance in the Treaty. itself from member states that keep a tight hold on their purse strings.

Brussels is looking at tax-raising powers for the European Union. The Netherlands cannot resist these developments. So what This vision is also reflected in the official happens now? language used. The Dutch government talks about ‘community’ rather than ‘Union’ and Precedents have been set and the blueprints the more ambitious ‘integration’ is avoided by for tackling the crisis are in place. The debts speaking of ‘cooperation’. The EU is crucial and incipient European taxes mark what is to the Netherlands for geopolitical stability, known in EU jargon as crossing the European as a joint framework for meeting challenges Rubicon and the EU is having its Hamilton such as climate change and as a market. moment – named after the US treasury The basic principle is that member states secretary who federalised the States’ vast must stand on their own two feet. This has debts after the Civil War. Commission been reaffirmed for many years in widely President Ursula von der Leyen therefore supported motions in Parliament opposing, refers to coronavirus as ‘Europe’s moment’. for example, deeper integration or blocking increases in the EU budget. The political conclusion for the Netherlands is that a lot of adjustments can be made The ‘no’ to the European Constitution in through tough negotiations, but it is difficult the 2005 referendum underlined public to resist developments. The northern sensitivities. A striking contrast to other European bloc that includes the Netherlands member states is that the Dutch House of is too small for that. There is no longer a Representatives recently introduced the the British back to hide behind and Germany Dutch flag in Parliament – but without the has opted to side with France for the sake of European flag. tranquillity in the EU.

The coronavirus crisis has brought the EU to the point where Dutch principles are being As in the case of Denmark, put to the test. At the latest EU summit it opt‑outs can offer a way out was nevertheless agreed to assist member states with grants and loans funded by €750 billion of common debt. These grants After years of pragmatism the point has been and loans mean that countries facing reached at which the Netherlands itself has financing problems no longer have to rely on to choose: should it go along with the plans the ESM, the dreaded European emergency now emerging for deeper integration or is fund, with its strict conditions on budget cuts it time to reassess the European vision? and reforms. Recent governments were known in the EU as difficult and even euro-critical, but the Instead of turning to the harsh ESM, member Netherlands remained a constructive and states can now look to the European proactive partner.

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Unlike Denmark, which is not in the euro for Parliament has, understandably, said that example, the Netherlands participates fully in member states should not decide on their every EU policy and has not demanded any own on priorities in European budget plans opt-outs. In the weeks and months ahead, and it wants extra money for research however, the European Commission will be and innovation, for example. Another developing its support plans, raising the question is whether a precedent has been question of how far the Netherlands wants to set for bypassing the ESM as a European go towards deeper integration. emergency fund.

Temporary is temporary? Political parties The big question is therefore what the appear to be avoiding areas of difficulty for centrist parties CDA, PvdA and VVD will do. now. While other member states and the GroenLinks and D66 are positive about the European Commission dream of a new phase deeper European cooperation, eurobonds of European integration, the Dutch position is and turning the European Commission into that European debts are one-off and moves a European government under the European towards European taxes will only be limited. Parliament. And European taxes are part It is doubtful whether these expectations of that. will be borne out, if only because debt is rising fast in all member states and keeping On the opposite side are the PVV and the the euro in the danger area, as Klaas Knot FVD, which believe the EU is unstoppable (President of the ) recently and that the government is misleading the underlined in the HJ Schoo lecture. people by denying creeping integration towards centralisation. They want Nexit, or at More common debt and continued weak any rate a referendum on the EU or the euro. European oversight must be expected because tight supervision of weak member states would push the euro politically and The CDA, the VVD and the PvdA economically to the edge of the precipice. have to decide whether they The European loans and grants will also be used for ‘greening’ and digitisation. If the are for or against a further North-South Metro Line in and deepening of the EU a new Berlin airport are already leading to mega overspends and delays, the same will If this is ‘Europe’s moment’, the centrist be true of the large-scale investments and parties must make clear whether they technological innovations required to meet support it. The CDA and the VVD are even bigger challenges such as ecological expected to be highly critical of ‘Europe’s transition and digitisation. These ambitions moment’, but as government parties they will are not consistent with a support fund hesitantly agree. On the opposition benches, running only for a few years. Temporary in the PvdA is for the most part positive about politics can be rather flexible. these developments. But will the social democrats also see this as the blueprint for the future? Ultimately it is also about the power of the European The parties must also state what their strategy is. So is there anything between Institutions the Rubicon and Nexit? Yes: opt-outs. The Netherlands prefers to avoid opt-outs, One thing is clear: the current European fearing a loss of influence if we are not sitting plans guarantee further robust negotiations at all the tables. Moreover, other countries on European budgets, conditions and might be tempted to opt out from Dutch supervision and the question of whether priorities, such as oversight of the quality common debt issuance will indeed be of the judicial system. Up until now it has one‑off. These negotiations also concern also been unthinkable for the Netherlands the power of the European Commission and to decouple from Germany on the path to the European Parliament. That the European European integration.

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What possibilities do opt‑outs offer?

An opt-out does not equate to a shift of direction, because an opt-out leaves other countries free to choose their model of European cooperation. European integration consists of a range of projects in which not all members participate, and that works fine. If the Netherlands chooses opt-outs, there will be more rather than less pressure on Germany, because Germany will be rather alone in the EU if the next-largest northern country places limits on integration.

Opt-outs are politically explosive in the Netherlands and unattractive if the EU is viewed as a single project, but what alternative do the centrist parties have? Acting as if it is business as usual is not an option. Is this ‘Europe’s moment’? Over to the centrist parties to have their say.

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About the authors

Adriaan Schout is Senior Research Fellow at the Netherlands Institute of International Relations, Clingendael and Professor of European Public Administration at Radboud University Nijmegen.

This op-ed was first published inEW magazine.