Brought to you by DutchNews.nl, Dutch news in English for an international audience DutchNews.nl Wednesday September 16, 2015 2016 Budget Special

No ambition MAIN POINTS CDA leader Sybrand Buma said Dutch economy is at a the cabinet is not showing enough • 2% economic growth in ambition in creating jobs. The 2015, 2.4% in 2016 600,000 jobless people in the Neth- crucial phase: minister • Budget deficit to hit 2.2% this year, 1.5% in 2016 erlands ‘don’t care about spending The Dutch economy is now National debt to fall to 66.2% power estimates,’ he said. growing more quickly than • in 2016 expected, finance minister €5bn to fund tax cuts and Lost gloss told • lower employment costs , leader of the parliament, as he handed which the government hopes Liberal democratic party D66, said the government’s 2016 will create 35,000 jobs the cabinet has lost its gloss. ‘The spending plans to MPs. 52% tax rate to start at better the economy, the worse the ‘The has wres- • €66,421. Middle tax rate cut cabinet’s performance,’ he said. tled itself out of the crisis,’ from 42% to 40.15%. Jobs need to be created urgently Dijsselbloem said. It has Childcare subsidies to rise, but cabinet prefers to spend its been a difficult period, he • costing €290m a year time on agreeing one unworkable continued, adding that the €60m to ensure all toddlers compromise after another. budget deficit and national • have daycare debt are now falling. Paternity leave to be in- Refugee tsunami ‘The recovery has expanded from exports to consumer spending and “pay • creased to five days The government had totally rise” has now outstripped “redundancy pay” as an internet search term,’ the Spending power to rise for failed to deal with the ‘tsumani of minister said. • 84% of people, no boost for refugees’, said PVV leader Geert Dijsselbloem outlined the government’s broad plans to boost spending on those on minimum incomes Wilders. Referring to claims by a nursing homes, on defence and on childcare and to cut the second and third Double income families will Lebanese minister that two in every tax bands and reduce the cost of labour. Nevertheless, there are still too • have 3.7% more to spend 100 Syrian refugees is a terrorist, many people at home not working, the minister said. The tax cuts will boost Asset tax to be overhauled Wilders said the Netherlands has job creation, he said. ‘We cannot be content with average growth of just • and increased for those with no choice but to close its borders. 1.5%...We are at the crucial phase of implementing the reforms which have over €100,000 Ministers who do not take this step been put in place,’ Dijsselbloem said. Read the speech will have ‘blood on their hands’, • Tax-free gift limit to rise to Wilders said. €100,000 King’s speech deals • Cuts in housing benefit to be Employers pleased delayed The three big Dutch employers or- with refugee crisis • €100m for local councils ganisations welcomed the cabinet’s and EU ambitions to realise sheltered work continued commitment to cutting schemes taxes and the cost of labour but King Willem-Alexander focused on • €5.8bn for infrastructure said the decision to increase the economic recovery in his speech • €210m to improve nurs- asset tax on high earners was un- to parliament, but also spoke of Photo: ing home care, boost staff fair on independent entrepreneurs. the ‘integrated approach’ needed safety and migration policy will be numbers to tackle the refugee crisis which is key to this, the king said, ‘in order • €150m for research and Forgotten folk ‘creating tensions within Europe.’ to protect our shared values’. The start-ups ChristenUnie leader said He referred to ‘people in over- situation in and the British • €220m more for defence the cabinet had forgotten some loaded boats heading for Europe referendum on EU membership spending groups. ‘Everyone is set to ben- to request asylum’, which, he said, would also be important aspects of • €649m for refugee settle- efit… apart from families with little was due to military conflicts, politi- the Dutch presidency, he said. The ment of which €110m for children in which both parents don’t cal instability and poverty. The king Netherlands, he concluded, is a camps abroad work full time, carers, the chroni- also focused on the Netherlands’ stable and attractive land to live in, • The king to get a pay rise of cally sick and handicapped and role as rotating EU president in the but it requires the effort of everyone €43,000, his mother €24,000 police officers.’ first six months of next year. Public to ensure this situation continues.’ and wife Máxima €17,000

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Budget Not just a good news budget: papers The Financieele Dagblad says in its boredom editorial the cabinet has been slow in executing the reforms it agreed upon in Dare I say it? This year it such haste and has underestimated the was hard not to be somewhat difficulties that are now being encoun- underwhelmed by the presenta- tered in their implementation. tion of the Dutch government’s The paper calls it ‘illusion politics’. ‘It’s annual spending plans. From painful to conclude that the feasibility a lacklustre king’s speech to of the reforms has turned out to be an the finance minister’s attempt afterthought,’ the paper writes. to jolly up the proceedings by The Telegraaf writes that the king’s using a briefcase from 1947 to speech started out with the good news carry his crucial papers, it all and saved the themes of terrorism and felt a little forced. This year, like refugees until last. ‘That shows what most recent budgets, the main the real concern of the coalition parties points had already been leaked. Labour and VVD is. They want to curry Even the government’s com- favour with the voters as the elections of munications strategy - stress 2017 are getting nearer. That is why, after years of cutbacks and reform, the cabinet is doling out presents even the economy is doing well but though it means increased borrowing,’ the paper states. Elsevier’s political correspondent Syp Wynia warns we need to do better - was in that although the budget deficit is now less than 3% the economic upturn is so fragile that it doesn’t need much the public arena. Little wonder to send it soaring again. ‘Moreover, the European deal is that the budget deficit should go down to zero.’ The then, that this year’s budget government’s spending spree in the sight of lower gas revenues is not ‘keeping the ship on course’ but making it was a hollow occasion. Even ‘zig zag’, Wynia writes. the comments from opposition NRCNext writes that the cabinet went a long way to avoid appearing ‘triumphalist’, pointing out that the finance party leaders were predictable minister came up with dire warnings about the implosion of the Chinese economy and its impact on Europe, the - D66’s Alexander Pechtold expected interest rise in the United States and the geo-political dangers that are threatening the economy. spoke yet again about the cabi- net’s lack of ambition and PVV leader did his Advertisement usual ‘tsunami of asylum seek- DICTIONARY ers’ bit, with a dash of ‘blood on their hands’ thrown in for good Prinsjesdag measure. Always the third Tuesday of September, Prinsjesdag is the Yes, the refugee crisis is the day the government presents dominant issue at the moment, its spending plans for the next but this is a European issue, year. The event is as famous not a Dutch one. At a local for its hats as the finanancial level, we’ve got the endless implications. calculations about the impact of the budget on spending power instead. Does anyone really no- MEV tice an alleged 1.4% increase in The annual Macro Economische the amount of disposable cash Order via www.dutchnews.nl Verkenning or macro-economic they have, as the government outlook is published by the would have us believe? government’s economic policy advisor CPB to coincide with It is no secret in that the budget - however, this year the two ruling parties - the right- much of it was again leaked by wing VVD and the social demo- broadcaster RTL. cratic PvdA - disagree about many things. In 2017, there is a general election and support Algemene for both the ruling parties is Beschouwingen well down in the polls. So, this These are the ‘debates’ in is a wait-and-see budget. A parliament which always fol- cut in income tax here, a bit of low the budget. First comes a extra money for defence there... two-day general debate, then nothing controversial. Everyone the financial debate and over is waiting for the next big thing subsequent weeks, debates on to come along. As it will when individual ministry plans. This is the general election campaign when the opposition get to call kicks off. for changes to budget policy.

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