The economy has weathered major shocks such as the energy crisis and the corona crisis much better than expected. According to Professor Arnoud Boot, this means that we need to be much less opportunistic in terms of policy. “The underlying numbers are proving to be much more robust than we thought a few months ago.”
For example, the average real wage in the Netherlands increased last year and data from Statistics Netherlands show that household spending is holding up. “So the idea that purchasing power has been lost en masse is incorrect.”
The Netherlands will therefore not benefit from the new emergency measures on the Prinsjesdag, Boot says, referring to generic purchasing power compensation such as the one-time energy surcharge. “The need in the country is no greater than before the corona crisis. There are groups that are struggling, so we have a welfare state and safety nets. If those safety nets aren’t properly in place, we need to do something structurally about it.’
Randomness
According to him, these “arbitrary measures” have contributed to the derailment of current public spending. “It wasn’t necessary and it put the economy to the sword.” According to Boot, reducing Prinsjesdag wouldn’t really mean cutting, “but making sure you’re between the lines again.”
According to the economist, the most important thing is that clear priorities are established on Prinsjesdag. “One of them is that you have decent fiscal policy, and that comes with tradeoffs.”
Source: BNR
Andrew Dwight is an author and economy journalist who writes for 24 News Globe. He has a deep understanding of financial markets and a passion for analyzing economic trends and news. With a talent for breaking down complex economic concepts into easily understandable terms, Andrew has become a respected voice in the field of economics journalism.
