Crisis deal nears, pension age to rise
Ministers and coalition party leaders held marathon talks in their efforts to come up with a package of measures to boost the economy on Monday night and appear to have agreed to increase the state pension age to 67.
The owners of homes worth more than €1m also face extra taxes and help with healthcare insurance for low income households is set to be cut, the Volkskrant reports on Tuesday.
Sources told the paper the entire package will collapse if the increase in the state pension age is not backed by MPs and unions.
It is not clear when and how the pension age will be increased and if the over-50s will be exempt, insiders said.
Unions and employer representatives are due to join the talks today. Agnes Jongerius, head of the FNV trade union federation, has already made it clear she is totally opposed to an increase in the pension age.
Exactly when the spending cuts will be made remains unclear on Tuesday morning. The Volkskrant says ministers have agreed to make savings of €5bn in 2011 which is election year. Other papers say this will only happen if the economy has picked up by then.
The Telegraaf says that ministers have agreed to put €6bn into extra investments and tax cuts. Investments will be made in boosting employment and cutting planning procedures for new construction projects. The flight tax introduced last year is the most likely tax to be scrapped, the paper says.
The government needs to make spending cuts to keep the budget deficit under control. Under European Union rules the deficit should not rise above 3% of GDP, but the current coalition has a 2% ceiling.
Thank you for donating to DutchNews.nl.
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