According to political journalist Sophie van Leeuwen, the State Council’s harsh words on public finances can be seen as a “knock on the finger” by Finance Minister Sigrid Kaag. “The Council of State always has something to complain about, but now they say the cabinet runs big risks and you have to be careful.”
If desired, the Finance Ministry replies that financial policy is “a political choice”, explains Van Leeuwen. “The ministry has always insisted on sailing close to the wind,” he says. “They think the wind or the guardrail makes no difference, and that it’s a coalition policy choice.”
‘It is a political choice of the coalition’
According to Van Leeuwen, the Netherlands is in a period of transition, with billions being allocated to nitrogen, climate and a war that has led to an energy crisis, for which a price ceiling had to be set. “So if you want to keep people from sinking through the ice, you can’t help but get your wallet out now.”
Ensure
And there are concerns about that, Van Leeuwen knows. Especially on the spending of those billions of euros and the effect that spending will have on the future. “This is what is called an ‘expansionary fiscal policy,'” he continues. “And it means that Kaag’s successor will have little budget in the next cabinet.”
All the more so as interest rates will remain high for the time being, and the Netherlands will therefore be very vulnerable in the event of an economic crisis. The budget plans also lack an explanation of how Kaag wants to find a possible cover for Prinsjesdag, according to Van Leeuwen. “The big question is, how are we all going to pay for this?”
Funds
Leaning on the announced funds as outlined in the budget and coalition agreement is also not an option, thinks DENK foreman Farid Azarkan. While these are resources that shouldn’t be included in a budget, he points out that those funds aren’t there yet. “The fact that a 30 billion euro fund is being announced doesn’t mean the money is already there,” he says. “That means they have yet to collect some of it.”
From there also started the first criticism of the Court of Auditors, underlines Azarkan, because it is above all an advance on subsequent cabinets. “Because what if it’s not implemented like this in the future,” he says. ‘So it’s also a little bit of filler for future generations. And it’s amounts like these that drive up the deficit to such an extent that — even with interest rate hikes — you’ll soon have to cut police, nurse, and other social services. It will hurt there.’
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.
