Bos would back wage moderation

Finance minister Wouter Bos would be ‘extremely supportive’ if unions and employers could reach a deal on wage moderation, he told tv programme Buitenhof on Sunday.

High wage rises are a risk for the economy, alongside soaring oil costs, Bos said, referring to the threat of an inflationary spiral.
However, Bos said he would not call on unions and employers to draw up such a pact – as happened in the 1980s – saying it was their own responsibility. But if bosses could moderate the high level of boardroom pay deals ‘it would set a good example,’ Bos said.
The minister said he was not concerned that the financial crisis in the US could impact on the Netherlands, pointing out that according to the government’s planning agency CPB, the Dutch economy is set to grow 2.25% this year, slightly down on earlier estimates.
Should that figure not be realised, then it would increase the budget deficit, Bos said, pointing out that the coalition agreement states that the government will only intervene if the deficit threatens to reach 2%. Government finances are currently showing a small surplus.
On Saturday, prime minister Jan Peter Balkenende said the Netherlands could boost its economy by showing more ambition such as by winning the competition to stage the 2018 World Cup. Amsterdam should also continue its efforts to profile itself as a leading home to creative talent, he said.

Thank you for donating to

We could not provide the Dutch News service, and keep it free of charge, without the generous support of our readers. Your donations allow us to report on issues you tell us matter, and provide you with a summary of the most important Dutch news each day.

Make a donation