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Bea
Keeper of the Western Door
Canada
Bumppo's Patron since [at least]:
May 18 2002
Status: offline
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 Posted - May 19 2003 : 5:06:53 PM
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From the Benelux Board
The Christian Democrats and two smaller parties (Conservative and progressive Liberals) have reached an agreement to form a new coalition government, four months after general elections. It calls for sweeping budget cuts totalling 15 billion euros. (apr $ 17,250,000,000.--)
With the Dutch economy facing heavy weather, the three party have opted to reduce spending in social security and health care. Education, Defense and Environment however, will be spared.
The task the three parties had set themselves bordered on the impossible. The new centre-right coalition pledged to find savings of 15 billion euros in order to bring the budget back towards balance, while at the same time increasing spending on education. And all that without further slowing down the already flagging Dutch economy.
It was clear to all some hard nuts had to be cracked, said Bert Bakker from the centrist D66 party, one of the main negotiators behind the agreement.
"There's an economic recession now, and when I compare the situation to a year and a half ago, we've done better than other European countries. But right now, we're doing much worse when it comes to economic growth, labour market policies and the budget deficit. So, we just have to make drastic changes in all these areas. This may be a harsh agreement, but we're convinced that any government facing these conditions would have to make harsh choices."
The Christian Democrats' leader and current Minister-President Jan Peter Balkenende is expected to get a new mission by Queen Beatrix.
"Painful measures will have to be taken, that's inevitable," so said Jan Peter Balkenende. Civil servants, though, will carry a larger-than-average share of the burden. Their salaries will not keep pace with inflation. "This is necessary to maintain our competitiveness in international markets, because the Netherlands is losing its competitive edge over other countries," explains Mr Bakker, who tries to put a positive slant on the agreement.
"When it comes to perspectives for education, instead of imposing any budget cuts, we will make additional investments. […] On the issue of public health care, the good news is that there will be a lot of additional capacity available in terms of operations and other medical services. The bad news is that given the recent explosion of costs, sweeping measures just have to be taken to slow it down." These include the phasing in of an annual 200-euro own risk in health insurance. The progressive Liberals managed to draw major concessions on its two larger coalition partners. This included additional funds to boost education and changes to the Dutch electoral system that would see local mayors directly elected by voters.
For its part, the conservative Liberals successfully hammered on tight monetary and fiscal policy in the knowledge that the Christian-Democrats wouldn't risk another setback after earlier coalition talks with the Labour Party collapsed in April.
The final coalition agreement reached in the early hours of Friday morning after a final marathon round of tough bargaining represents a balanced compromise and a sound recipe for the economy, concludes Mr Bakker.
"I think the balance is there, because we're not damaging the economy and we're boosting employment. The positive effects will outweigh the negative effects, even in 2007, after which things will start to improve."
 Ilse, I found this article rather interesting. My question to you is: What do you believe led to the bad Dutch economic situation?
Could the Euro have some thing to do with it or perhaps even the unstable political situation over the past few months? And..last question here : What do you think should be done to improve the sagging economy?
I know that Germany isn't doing so great either and my relatives are not too keen on the Euro although one can't blame everything on the new currency.. But, let's focus on our fiendly neighbour
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Ilse
The Dutch Trader
Netherlands
Bumppo's Patron since [at least]:
May 17 2002
Status: offline
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 Posted - May 20 2003 : 06:16:29 AM
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Hi Bea,
Yup, hard times ahead
No, I don't think it has anything to do with the Euro. The biggest factor in the Dutch recession is a decrease of investments (individual households and government) of 6.2% on a yearly basis (this measured in the first 3 months of this year). Also, import increases faster than export, so foreign trade has a negative influence on economic growth too.
What to do? I don't know; I leave that to the experts, which I am absolutely not! Hopefully this new coalition takes the right steps, but we will see.
I am glad to see they are going to invest in education (this is a D66 negotiating victory I think; yay for the progressives!) though; in my opinion a much neglected terrain over the last few years. |
OH HAI!
Blessinz of teh Ceiling Cat be apwn yu, srsly.
http://www.lolcatbible.com/index.php?title=Main_Page |
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Bea
Keeper of the Western Door
Canada
Bumppo's Patron since [at least]:
May 18 2002
Status: offline
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Posted - May 22 2003 : 11:00:16 AM
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Thanks for your reply..I meant to post earlier but I am still limping( literally) behind..
I hope that things will improve for you guys..What are the main products that the Dutch export? Should I buy more Gouda?? :)
I am sure that the Mad Cow Disease must have hurt your economy as well.
As you are probably well aware our province has a BSE case and people are feeling the pain already..So far it is only one case but.... |
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New Coalition Government in the Netherlands
