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How to raise €35bn: make cuts, put up taxesThursday 01 April 2010 Increasing the own risk element in health insurance to €775, cutting the minimum wage by 10% and reducing basic welfare benefits - these are just some of the ways the government can get its spending under control, according to civil service recommendations made on Thursday. The recommendations are the work of 20 government working parties, set up to indentify ways of boosting the government coffers by a structural €35bn. The Dutch budget deficit is set to reach 6% this year. The working parties were set up last year, before the cabinet collapsed, to suggest spending cuts and tax increases which would effectively amount to a 20% reduction in ministerial budgets. General election The groups were asked to speed up their work, so the suggestions can be included in political party manifestos ahead of the June 9 general election. The proposals range from bringing in extra charges for rush-hour travel, slashing civil service numbers and bringing in a €5 fee for visits to the family doctor. Unions have already condemned some of the suggestions, saying they will increase divisions between rich and poor. Drastic action Prime minister Jan Peter Balkenende said the new government will not be able to avoid drastic action. The 20 reports offer 'very great insight' into the options to make savings, the prime minister told reporters. 'It is now up to political parties to state what they will or will not do.' The current cabinet is not able to take any action because it is in a caretaker role. Each of the recommendations has a price tag attached, allowing parties to pick and choose the various elements. What do you think of the proposals? Take part in our poll Housing market: Unemployment, benefits and work Public sector Schools
(Sources, Financieele Dagblad, Telegraaf and Volkskrant) © DutchNews.nl
Aha...April 1-st! By Arm | April 1, 2010 4:14 PM It's obvious something needs to be done to raise the money, but yet again I see a larger portion of this being placed on the individual. Increase in own risk medical is a disgrace, already medical insurance is excessive, so to increase own risk and fees for visiting doctors will place greater strain of the elderly and infirm. The system is going like the USA, in that we have to pay for everything, the difference being the Dutch pay twice, given the fact taxation is so high. I do think a cap on interest relief is positive and is a step in the right direction. I worry about the future of our next working generation and what this means for society By Johan | April 1, 2010 4:41 PM Hmm, every one a vote catcher. By Jamie Anderson | April 1, 2010 4:55 PM Ye know i was scared reading this until I realised ARM must have it right. i mean i know the gov here is stingy but they cant be THAT bad...can they??? lol... By jen | April 1, 2010 5:11 PM Well, perhaps it is a good idea to scrap the purchase of strike fighters and other American armaments, should save 35 Billion in one simple move. By Sam Ward | April 1, 2010 5:12 PM I totally agree with Sydney Russell's comments above. Follow the Anglo-Saxon model and you will end up right where they are now. Headed toward massive inflation and overbearing debt. The reason the Netherlands faces this cutback problem now is in part due to taking the lead from the UK and the US. Wake up! (US citizen) By Allison Cody | April 1, 2010 5:28 PM Sounds like the elephant in the room technique. Let's wait for the less nasty choice that will be 'accepted' with relief. By Wagner | April 1, 2010 5:36 PM It is 1st April but it would be best not to give ideas like these to Dutch Government ... might become an every day thing! By Gerard | April 1, 2010 7:03 PM With the stroke of a pen. They destroy the very foundations of my country. Outrage doesn't cover it... perhaps hatred does. By Tristan van Oosten | April 1, 2010 7:13 PM I strong support the cut on Public Sector and Immigration/Integration. The principle is more efficient government, less generous to foreign aid and more rewarding to hard-working and innovation. By DL | April 1, 2010 8:02 PM April 1st jokes are supposed to be funny! Sorry I cannot laugh at this one as it is far too close to wishful thinking on the governments part! Only a fool would fall for this utter nonsense, LOL he he... By stevie | April 1, 2010 9:14 PM More than half of these suggestions make no sense! How will reducing the minimum wage save the government money? Force home owners of older buildings to improve insulation? Where is the government saving there? Make immigrants pay for integration courses? I am sure there is a fortune to be made there! End link between benefits and inflation? Why not just do away with benefits altogether and euthanise anyone who loses their job? Seriously, most of these suggestions are just knee-jerk stupidity. By Marc | April 1, 2010 9:25 PM Oh please don't touch the schools. Please don't make the poor, the weak, and the handicapped suffer. There must be a better way- By Janne | April 2, 2010 12:47 AM This has got to be April fools...I left the USA.... now where am I to go...are there any more civilized societies left that take care of those down and out? By Ames | April 2, 2010 8:48 AM Interesting list however I have a few additions; Etc, anyone else care to continue adding to these reasonable ideas? By Mr. P | April 2, 2010 10:03 AM Stop wasting money on F-35 and F-22. Why do you ever need an advanced fighter jet? By david | April 2, 2010 10:40 AM Housing market: By Jennifer | April 2, 2010 10:58 AM All possibles decisions will be taken and applied.As long as they don't affect the reach ones, the decision makers!!!! Instead of to cut hte high salaries, the bonus of Banques director and others, they just cut by the less paid and the pours. This is a shame!!!out By King | April 2, 2010 1:30 PM Increasing self-risk to 775. How genius are these duys. I better insure myself and finance it completely. I have a solution, what about Dutch people to start working, I mean really working like other human beings in the universe .. I know expats getting admonished because they finished a job in 4 hours, where their departmant was planning to do it in one week. By Oz | April 2, 2010 2:25 PM Mr. P Your ideas are very thoughtful. I hope politicians get it too. But usually, when it comes to the right decisions, politicians play it fool. By david | April 2, 2010 4:53 PM Very productive result of our civil servants'brainstorming. The question is, why should then cut those government spendings, if the money was mainly intended for those very purposes? The things you will not find in the list are: 1) reduction of federal government costs, 2) reduction of military spending, 3) reduction of the costs for Royal family, 4) reductoion of foreign aid, which mainly sprayed on bribes/lobbing the Dutch exports. It seems the only way to solve the problem - to change the very electoral system, moving from the election system based on party lists of manipulated non-professionals to direct elections of people's representatives. By Ed | April 3, 2010 9:18 AM Cut unemployment to one year,reduce foreign aid across the board to foreign to countries....Do not cut or reduce the dutch defense budget,it already have been re-organized to cut cost,do not repeat the mistakes of the past,remember WW-1...WW-2 By Eric M Johnson,Sr. | April 5, 2010 11:08 PM
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Dear Sirs:
How sad that the government should abandon those very social ideals that have made The Nederland a model of inspiration to other counties. Very sad indeed to propose to place the burden of the financial crisis on the people who are the least able to bear the measures being considered.
By Sydney Russell | April 1, 2010 4:04 PM