Economy-boosting package put at €6bn

Monday 24 November 2008

The government has announced a €6bn package of measures to stimulate consumer spending and help the economy withstand the worldwide financial crisis.

Announcing the plans on Friday evening, prime minister Jan Peter Balkenende said that it is ‘all hands on deck’ as the country moves into a difficult economic period.

The most significant measure in the package is the re-introduction of accelerated write-offs on investments for businesses, which is expected to generate €2bn in tax benefits for companies, reports the NRC.

Shorter working

The government will also allow firms that have to lay-off workers or introduce shorter working hours as a result of the credit crisis to use the unemployment benefit (WW) fund to pay employees for up to 24 weeks. Some €200m is available for this.

The government will also make sure that it pays its bills to businesses on time.

And to stimulate consumer spending, the four-year lock-up on tax-free save as you earn (spaarloon) schemes will be lifted.

Other measures include the possibility of speeding up building procedures to help the construction sector and bringing investments in infrastructure projects forward.

European scheme

Ministers say all these measures are necessary because the country is starting to feel the effects of the credit crisis. Economic growth has reached a standstill, unemployment is rising and companies hare seeing a fall in orders and finding it harder to get credit.

The aid package is the equivalent of around 1% of the gross national product and as such pre-empts a rescue plan currently being prepared by the European Union for all member states.

Balkendende expects the new Dutch measures count as the Netherlands’ contribution to this plan, reports the NRC.

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