2012 budget: the main points

The main points of the government’s 2012 agenda include a number of plans which have already been made public or were included in the coalition agreement.


Finances
• Economic growth to reach 1% in 2012
• Budget deficit to reach 2.9% next year, double earlier forecasts
• State debt to reach 65.3% of total government expenditure
• Total savings next year €5.8bn, on target to hit €18bn by 2015
• Spending power to go down by an average 1%
• Single salary families with a high income will lose 2.8% in spending power
Taxation
• Seven minor taxes, such as the tax on packaging and on water to be scrapped
• Only very energy efficient cars to qualify for tax breaks
• New legislation will give companies tax breaks on charitable donations
• It will be more difficult for foreign firms to get tax breaks on their takeover of Dutch firms

Education and culture

• More focus on central exams at all levels
• Industry to have input into curriculum, particularly in vocational training
• Employers’ childcare contributions to rise
Security and justice
• The national police force to be a reality by 2012
• Police volunteers to account for 10% of operational strength by 2015
• New legislation to increase sentences for people smuggling by end 2011
• New targets for tackling people smuggling, drugs and money laundering (through property transactions)
• Police cybercrime unit to be strengthened
• Cannabis cafes (coffee shops) to become member only clubs in 2012
• Victims of crime to have the right to speak in court
• Tougher jail sentences for people who attack emergency service workers

Health, welfare and sport

• €10m a year extra for sport
• Legislation to allow hospitals to make a profit to be introduced end 2011
• Legislation to make it a criminal offence for the under-16s to have alcohol in public
• Help with stopping smoking, dietary advice, antacids and some physiotherapy to be scrapped from basic health insurance package
• Basic health insurance premium and own risk element to rise by around €60 per year

Home affairs

• Passports to be valid for 10 rather than five years
• Extra effort to be made to ensure families and minors who are illegally in the Netherlands go home
• Extra conditions to be placed on acquiring Dutch nationality
• Legislation to allow Dutch nationality to be removed from serious criminals
• Integration policy will no longer focus on specific problem areas
• A ban to be introduced on ‘face covering garments’ in public places
• Housing corporation tenants to get the right to buy at a reduced rate
• Housing benefit to be cut, saving €100m
• Grants to boost housing energy efficiency to stop
• Immigrants to pay for their own integration courses
• Rent-controlled housing sector to be reformed to free up more houses for middle incomes
Social affairs and employment
• Childcare subsides to relate to parent’s working hours
• €420m to be cut from childcare budget
• People who make fraudulent benefit claims a second time to be excluded from benefits for five years
• Companies to get a ‘mobility bonus’ for taking on older staff
• Social security benefits will depend on total household income, not just the claimant
Foreign affairs
• Dutch interests to be main focus
• Diplomacy to become ‘economic diplomacy’ with a focus on guaranteeing commodity supplies
• The emergency aid budget will be cut from €250m to €219m next year and €205m in subsequent years
• €7.5m to aid development in Egypt, Tunisia, Morocco and Jordan
• Less focus on prisoners abroad
Economic affairs
• €500m extra allocated for a new corporate tax break for ‘research and development’
• €32.5m for developing a second nuclear power station between now and 2013
• At least 17 foreign trade missions next year, including China, India, Turkey, Brazil and Russia
Infrastructure and environment
• Efforts to reduce serious traffic accidents, including an alcohol lock on cars and accompanied driving from 17
• A 20% reduction target for traffic jams on the busiest roads
Defence
• Cuts to reach €600m in 2012, €1bn by 2015
• The Netherlands will continue to take part in Nato and EU anti-piracy operations
Royal family
• Personal spending unchanged at €7.2m
• €300,000 extra to expand and update the royal family website
Based on newspaper and newsagency reports

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