The European Union is discussing the fiscal rules today. Originally, the rules for belonging to the euro were quite strict, Hoogeveen knows. ‘It’s actually kind of an elite club. The euro represents a strong common currency and a competitive economy. But there are a number of countries that struggle with the strict rules,’ says the MEP.
Greedy four
Hoogeveen calls it “the frugal north” as opposed to the “extravagant south”. For a long time Holland was part of the first group, it was even grouped together with Denmark, Austria and Sweden under the name of ‘the four misers’. But Kaag seems to be making an important turn with his policy, he wants to loosen the reins and compromise with countries that cannot comply with the strict fiscal rules. According to Hoogeveen, this is dangerous, because “it’s our money”.
“You shouldn’t become more flexible if you ultimately want a European Union with sound finances”
Southern countries in particular are asking whether they can reduce their debts less quickly and at the same time want to invest more in the climate transition, among other things. But the danger of a new debt crisis is tantalizing if that is permitted, says the MEP. ‘If you want hard currency, you also need to have your housekeeping book in order, and some countries don’t have that. It’s an equal, you shouldn’t become more flexible if you ultimately want a European Union with sound finances.’
FREE money
According to Hoogeveen, Minister Kaag’s attitude towards European fiscal rules has changed because ‘he wants to please Brussels’. Besides, it’s a financial economics discussion, he says. ‘Germany, for example, does not agree with a relaxation of fiscal rules because other countries see a free monetary policy, which can no longer continue. Kaag has to be careful because soon she will be on her own and then we will have let go of our principles and our most important trading partner, Germany, to defend something that is not in our best interest,” Hoogeveen argues.