DutchNews.nl - VVD and PvdA reach a deal on amending next year's budget

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VVD and PvdA reach a deal on amending next year's budget

Monday 01 October 2012

The right-wing VVD and Labour party, currently in talks on forming a new government, have reached agreement on how they would like to amend the outgoing cabinet's spending plans.

VVD leader and prime minister Mark Rutte and Labour's leader Diederik Samsom outlined their agreement at a news conference on Monday afternoon.

The outgoing government, which includes the VVD, published its 2013 spending plans last month, just six days after the general election.

As expected, Rutte and Samsom have agreed plans to charge higher fees to students who take too long to complete their degrees and to tax home-to-work travel expenses are to be scrapped.

In addition, plans to charge patients €7.50 a day for hospital stays will also be dropped and a tax-free savings scheme aimed at encouraging older workers to stay at work will not be implemented.

The shortfall in treasury income which will be made up by increasing the tax on insurance from 9.7% to 21%. This will raise €1.4bn.

Pensions

The Labour party has also agreed the state pension age should be increased to 66 by 2018, earlier than originally planned.

MPs will debate the changes and the rest of the 2013 spending plans during two days of debate on Tuesday and Wednesday.

There is majority support for scrapping the commuter tax and the slow student fine in parliament.

Do you agree with the changes? Have your say using the comment box below.

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Readers' comments (9)

I like the way that the 2 parties are moving quickly and decisively. That helps confidence more than the details. It's more or less a centre balance government and I feel that is good

By Peter Alt | October 1, 2012 3:14 PM

This is great news. Will this only go into effect IF this coalition is formed? Is this a guaranteed coalition? Will they immediately stop charging the higher rate and refund whatever money was taken?

By Max | October 1, 2012 4:01 PM

So what exactly was the point of caretaker gov't? To introduce measures that won't be implemented? Or maybe I missed one out? One that anyone in charge would not want to be associated with.

By Dr Ponzi | October 1, 2012 4:15 PM

Could you please stop being so biased? Either it's "liberal VVD and labour party PvdA", it's "VVD and PvdA" or it's "right-wing VVD and left-wing PvdA".

By Michael | October 1, 2012 4:56 PM

Their solution always is to raise taxes...VAT, now insurance. Why don't they find a way to cut costs like stop paying ex 2nd chamber members that were not re-elected, and other frivolous spending! We just got a tram stop completed (nearly 2 year delay) and now they are changing it to a Randstadt rail. It costs millions to redo all of those stops,and the fast train rail system...well that costs billions!

By M | October 1, 2012 7:58 PM

9.7% to 21%, daylight robbery. Of course the Dutch public will bend over for this one once again and say nothing. Shameful on both counts.

By Annoyed | October 1, 2012 8:15 PM

how come they never implement an additional tax on bankers income? who will ultimately bear the costs of increase insurance tax?the public?

By ufo | October 2, 2012 8:15 AM

And, most importantly, they are not urgent to discuss the changes with the 'hypotheekrente' that, will be the bombshell. Their budget deficit, for instance, may not exceed 3% of GDP, complete mythology, austerity, will strangle our economy's. As for the Bankers, bring criminal charges and MAKE them pay for this awful mess. I would prefer to hear more serious debate in the media regarding financial regulation of banks, instead of taxing the already cash strapped Sheeple? its a disgrace.

http://www.presseurop.eu/en/content/news-brief/2776341-secret-3-finally-revealed

By Highlander | October 2, 2012 10:51 AM

During the election campaign, Diederik Samsom, the leader of the centre-left Labour party, accused Mr Rutte of siding with Germany in favour of austerity-led eurozone policies that have damaged the Dutch economy. I hope that he does not do the predictable U turn and sticks to his principles. As for Rutte this is a good read......http://www.minyanville.com/business-news/politics-and-regulation/articles/Dutch-Netherlands-Prime-Minister-Mark-Rutte/6/25/2012/id/41976

By Highlander | October 2, 2012 11:23 AM