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Coalition accord: the main points

Tuesday 30 October 2012

The coalition agreement drawn up by the right-wing VVD and Labour party (PvdA) sets out the new alliance's strategy to 2017.

The main points, including those already leaked over the past few days, include:

Taxes and finance
• The highest tax band will be cut from 52% to 49%
• The third tax band will go down from 42% to 38%
• All workers to get an extra tax-free allowance of €500 a year by 2017

Housing market
• Mortgage tax relief will be reduced by 0.5% a year from 2014 for both new and current mortgages
• Social housing rents to rise: 1.5% plus inflation for those earning below €33,000, more for higher earners
• Housing corporations to focus again on social housing

Education
• Student grants will be replaced by loans and the fine for slow students will be scrapped.
• Free travel for students to be replaced by discount card
• Tougher standards for teachers, more practical teaching
• Free school books to be scrapped

Healthcare
• Healthcare benefit will be scrapped
• Health insurance premiums will become income-dependent
• Own-risk to become income-dependent from 2014
• €50 fee for 'unnecessary visits' to hospital A&E departments
• Pay freeze for health sector staff

Employment and social security
• Earnings-dependent unemployment benefit (WW) to be cut from 38 to 24 months
• Quotas to be introduced on employing the handicapped
• Golden handshakes to be restricted to €75,000

Finance sector
• Performance-related pay in financial sector to be capped at 20% of basic salary
• Bankers to swear an oath of integrity
• ABN Amro to be privatised when financial markets are stable
• Bank staff screening to be extended to all involved in major transactions

Equality
• Civil servants will no longer be able to refuse to marry gay couples
• Local councils will have the right to decide whether or not to allow Sunday shopping

Immigration and integration
• An amnesty for refugee children who lived in the Netherlands for more than five years
• Restrictions on workers from Bulgaria and Romania to be lifted in 2014
• Residency requirement to vote in local elections to be increased from five to seven years
• Immigrants to be excluded from welfare (bijstand) for first seven years of residency
• Residency requirement for nationalisation to increase from five to seven years

Public sector
• Organisations funded by public money to be banned from derivative trading
• Local government to be overhauled
• Noord Holland, Utrecht and Flevoland provincial government to be merged

Infrastructure
• Old-timers will no longer be exempt from road tax
• Regional airports to be developed
• Hedwige polder to be flooded

Other
• Plans to win the 2028 Olympics scrapped due to 'lack of support in society'
• A ban on wild animals in circuses
• Holland Casino to be sold
• The legal drinking age for all alcohol to be increased to 18
• The cannabis card (wietpas) to be dropped, admission restrictions to remain
• Taxes to go up on alcoholic drinks and tobacco
• Prisoners to pay a contribution towards their upkeep
• Face-covering clothing banned in public buildings and on public transport
• €1bn will be cut from the development aid budget


Share your thoughts on the new cabinet's plans using the comment box below.

© DutchNews.nl



 

Readers' Comments

Most of it I find fine. However, I would have preferred not to have the reduction in taxes and the 500 eur tax free allowance in order not to increase self-risk and aboish the zorgtoeslag. OK, health insurance becomes income-dependant but it is not specified how much and I guess we will all be paying more. also the 50eur fee for "unnecessary" hospital visits is a very bad idea as it paves the way to interpretation. How bad one feels is totally individual. As a patient I do not always know how serious my symptoms are. more people will risk not getting help because they won't dare go to the hospital... and... what about the double nationality issue??

By the_expat | 29 October 2012 5:33 PM

Immigrants to be excluded from welfare (bijstand) for first seven years of residency . I don't get this , so i have lived here fore 4 years now , if I loose my job I won't get unemployment benefit?
???

By Dmitrij | 29 October 2012 5:47 PM

@Dmitrij, if you had a job you get unemployment benefit (WW). Bijstand is different.

By pepe | 29 October 2012 6:18 PM

Dmitrij, feel free to read the difference between a "bijstand" and WW (the benefits you are talking about) ... it is a good thing you don´t know it though.

By Igor | 29 October 2012 6:23 PM

Welfare is not the same as an unemployment benefit, Dmitrij.

Weird that allowing dual nationality hasn't been mentioned, but extending the residency period from five to seven years has. What is the rational behind that? And is it still three years for those married to Dutch citizens?

By CW | 29 October 2012 6:26 PM

Have they said anything about the european crisis??

By Monica | 29 October 2012 6:56 PM

I'm a "Kennismigrant" who has been living in NL for 4 years. I would like to know if they plan to change residency requirement for naturalization from 5 to 7 years for newcomers or also those already living here.

By HM | 29 October 2012 8:11 PM

I can see that everyone makes a sacrifice except for the Queen (this is the most expensive monarchy in Europe!). Health insurance changes make me scared. No wellfare for inmigrants for 7 years? I guess it is only fair if they do not have to pay for it either.

By Moi | 29 October 2012 8:19 PM

Thank you all for explaining .

By Dmitrij | 29 October 2012 8:42 PM

Evaluation of the Wietpas still not made public, but the card is to be dropped and "admission restrictions" remain, what will that come to mean? The original coffeeshop aim was "to protect experimenting youngsters from heroin" - and the UvA's evaluations showed it did that nearly perfectly. Those who deliver junkie drugs services see every failure of this policy so should be more directly involved. This is no trivial issue for parents either.

By Max Harmreduction | 30 October 2012 2:35 AM

they should not tamper with the health system. Any kind of "penalty" will force people (especially those with low income) not to go and be checked/tested. If they end up needing surgery later how will that save anyone money? It's completely short sighted.

By Michael K | 30 October 2012 5:07 AM

Ban on wild animals in circuses, and legal drinking age for all alcohol (hard drug) to be increased to 18 seem right.
Cannabis : what new admission restrictions ?
Prisoners to pay a contribution towards their upkeep : sordid idea.

By Philippe | 30 October 2012 9:24 AM

Healthcare and education measures sound like they are not looking for second term. Are they trying to milk the system for some corporations as much as possible for this term?

By ufo | 30 October 2012 9:43 AM

In the big cities of the Randstad, it is estimated that 25% of workforce is comprised of expats. Expats who pay taxes, buy homes, cars, invest in Dutch pensions. None of them get to vote. The proposed changes are making me and perhaps other expats take a look at leaving the NL. It is a great country that has lost its way. Germany seems a lot more welcoming to 'kennismigrants' these days. We cannot vote for government, but we can vote with our wallets. Combined with the drop in tourism from the wietpas thinking, I'd imagine Dutch GDP is in a for a measurable drop. Such a shame, since NL really has been such a great country.

By Rick Kane | 30 October 2012 9:59 AM

On the employment benefit(WW) I believe one must be able to speak Dutch ? Apparently no Dutch no money. Which is interesting and possibly illegal as you've already directly contributed to this insurance/benefit in your taxes !!

By new | 30 October 2012 10:46 AM

Does anyone know if the mortgage rules brought in the the interim government still stand, where to qualify for the interest mortgage relief you have to pay off 100% of the capital ...?

By new | 30 October 2012 10:48 AM

First of all - thank you DN for making this list. Outstanding service.

I can't find anything on the list which strikes me as blatently wrong or misguided. I hope the housing market can stabilise now that people know what they will sign up for with a new mortgage. I do believe it was important to target existing mortgages as well, otherwise no one would move for the next 30 years. Some odd balls (prisoners, olympics, wild animals). All in all, I can digest this result.

By GS | 30 October 2012 11:03 AM

oh I wish they would stop meddling. Nice that they are going to make all these corrupt little special interest groups happy, shame there is nothing for 99% of the population in there.

By Simon Says | 30 October 2012 11:30 AM

Does any one have any idea when these agreements will be law? My question is about the nationalization. I am eligibale to apply for citizenship from 1st of Feb 2013 (5 years). Are they going to change the law from the beggining of 2013?

By Mo | 30 October 2012 1:10 PM

@new, wrong. This is about Bijstand not WW. Bijstand is a benefit you didn't pay for.

By pepe | 30 October 2012 3:26 PM

I have the same question as Mo and HM - would be great if anyone has info on when this extension from 5 to 7 years will come into law. I gave a quick call to IND today and the only thing they could share is that it will take time...

By AN | 30 October 2012 3:43 PM

No, new, I'm on unemployment benefits and will be doing the staatsexamen at the end of the year. It's not welfare. And until they make it compulsory for people to be fluent in Dutch to work here, they can't make you be fluent in Dutch to collect the benefits you paid for.

Welfare though? I really don't expect that law to really affect a lot of people. Asylum seekers must go through inburgeringscursus...immigrants usually have a Dutch spouse so wouldn't collect welfare on their own...Expats would probably leave the country if they were made redundant while still ineligible for unemployment benefits...

So I don't know...perhaps EU people who came here for work and are now unemployed?

By CW | 30 October 2012 3:52 PM

Can someone please explain what this means. " Immigrants to be excluded from welfare (bijstand) for first seven years of residency". I saw the comments above but i still don't get it.

By John | 30 October 2012 5:49 PM

Mo, suggest you to check IND site for details.

By KevinNH | 30 October 2012 9:27 PM

 
 
 
 
 
 
 
 
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