Finance Minister Kaag cannot rule out cuts next year. He said it yesterday in the debate with the House of Representatives on the autumn memorandum. Meanwhile, the opposition is concerned about a potential purchasing power gap. “Kaag has big problems.”
“Kaag hopes he won’t have to cut costs in the coming period, but he can’t promise that,” says political journalist Sophie van Leeuwen. ‘Last night the Chamber agreed on the maximum price for the energy bill. It is estimated that it will cost more than 23 billion euros. With the current gas price, cuts aren’t necessary yet, Kaag thinks. But what if there are shortages again next winter and the price of gas rises even more?’
Kaag’s second problem is raising interest rates. The ECB will probably raise interest rates again today and that too will cost Kaag money. If so, the minister will eventually have to look into cuts, says Van Leeuwen. “Kaag admits it too, but he can’t promise anything. He indicates that he doesn’t want to cause any harm and that the weak in society shouldn’t be affected, and that may mean that for other groups.’
Rich
The question then is where any cuts will go. “It’s a huge conundrum in the finance ministry and they haven’t solved it yet within the coalition,” says Van Leeuwen. “We look at the rich in the Netherlands, but right-wing parties are not in favor.”
Instead of cutting back, various funds are also being considered, such as the National Growth Fund, also known as the Wopke-Wiebes Fund. “This is free money, borrowed at zero percent interest and ready.”
Canyon
Meanwhile, the opposition also fears a so-called purchasing power gully. Because if, with rising gas prices, the energy ceiling should end after one year, in the winter of 2023-2024, the consumer will have to pay the full price for gas and electricity. “This concern is justified and it’s not just about the opposition,” says Van Leeuwen.
‘Because what if that price cap runs out? The Cabinet now says it wants to compensate specifically, in other words only the company fund. This means that a large part of the Netherlands will have to solve it on its own, either by adopting energy-saving measures or by accepting a more expensive energy bill.’
On the other hand, a higher gas price could also be beneficial for Minister Kaag. “Because the higher the price of gas, the higher the income from the Dutch gas fields, the more money he has in his wallet.”
Suriname
In addition to all these problems, Sigrid Kaag is also sent to Suriname to solve the crisis for the excuse of slavery. “I’m very curious if they will come out of it, an apology must be presented as early as Monday 19 December, it will be hard work,” says Van Leeuwen.
‘But Kaag is also a senior civil servant, he has also negotiated with the Syrian dictator Assad in the past. So perhaps you are the right minister to solve this problem. But on the other hand, there are also signs that the Dutch apology will be rejected.’ Kaag will speak, among others, with President Chan Santokhi, parliamentarians and representatives of civil society organizations.
Source: BNR
Fernando Dowling is an author and political journalist who writes for 24 News Globe. He has a deep understanding of the political landscape and a passion for analyzing the latest political trends and news.
