U bevindt zich op: Home › Government › Previous governments › Balkenende II Government Huidig dossier: Balkenende II Government

Policy statement

This is the translated text of the government statement of policy on taking office as delivered to the House of Representatives of the States General by the Prime Minister, Jan Peter Balkenende, on 11 June 2003

Mr President,
This government wants: more people in work, growth in national income, better public services in the areas of care, education and public safety and control over the national debt to enable us to meet the cost of an ageing population. It will not be easy to achieve these objectives. The Netherlands is not only going through a recession, it is also lagging behind a number of other countries. Doing nothing and waiting until things get better is not a serious option. The Netherlands would not then be in a position to capitalise on a subsequent upturn in the global economy.  We would just sink deeper into the abyss. The government is committed to revitalising and strengthening the economy. It wants to invest in knowledge, public safety, mobility and sustainability. It wants to introduce greater incentives in social provision, to improve public administration and to cut down on rules and regulations.
 
But our objective encompasses more than just 'employment and deregulation'. We want to work towards a society in which people participate. A Netherlands that is more than a limited company with almost 16 million people. Cohesion and solidarity are key. Responsibility cannot be borne by the government alone. The government calls on every individual and every organisation to play their part. Today's world requires us to reassess where we are and where we are heading. Many people have the impression that the government does not properly understand their problems. They feel uneasy living in a country in a state of flux.
 
How do we actually relate to each other?

This government will invest in political and social reform, in greater individual responsibility and a heightened sense of community. The government will give priority to our common interest and our future over special interests and short-termism.
 
All these objectives exist in an international context. The European Union is one of the cornerstones of our economic, political and social potential. The large part played by the Netherlands in international cooperation and in peace missions likewise reinforces our own development.
 
'Participation, employment, deregulation.' These are the terms in which the government is framing its response to the onerous demands of the present day.

Mr President,
The purpose of this statement is to introduce the government to this House. I will first say a few words about the formation of the new government, before outlining its policy.
 
There have been two elections to the House of Representatives in the past twelve months. They have brought about considerable shifts in the composition of the House. Two governments have been formed. The various stages of the formation of both coalitions have been discussed and reported on in earlier debates in this House.
 
The election results of 15 May 2002 and 22 January 2003 amount above all to a call from the electorate for plain speaking. And for an effective policy response. The aim in forming this government cannot therefore be simply to enjoy the largest possible parliamentary majority. Confidence in the coalition's ability to work together to get things done is vital. CDA, VVD and D66 arrived at a consensus on the issues at stake, forming the basis of a fruitful partnership.
 
These three parties have also taken further steps towards political reform. The coalition agreement is intentionally brief. This gives greater scope for debate with the House. It also gives the government greater scope for drawing up the policy programme that it will present on the opening of the new parliamentary session. Another innovation was the convening of a meeting of all prospective ministers and state secretaries, prior to the inaugural meeting, focusing on cooperation and uniformity of government policy.
 
Mr President, I now move on to policy.

The Dutch economy has entered a crucial phase. There is a risk that we will be left further and further behind. We have the opportunity to take the road to recovery. The foundations of our economy and government finances are in better shape now than they were in the recession in the early eighties. On the other hand, we clearly face more risks in the future than we did then. At that time, the number of young people entering the labour market was growing. We will very soon have to meet the cost of an ageing population. And the current downturn is sharper than the one we experienced in the crisis of the early nineties. Unemployment is up 150,000 on 2001, and is approaching half a million. For three years now, the performance of the Netherlands in terms of growth, employment and inflation has been poorer than the European average.
 
The global economic downturn is certainly one of the reasons for our economic recession. But it is more than just a cyclical problem. Our economy is getting left behind, its vitality undermined by fundamental problems. Pension costs are spiralling. And since 1998 labour costs have been rising much more quickly than they have been abroad.
 
Long-term control of salary and pension costs is not the sole condition for economic recovery, but it the primary condition.
 
Restraint is necessary in the public sector. This is because it is paid for by taxpayers: individuals and businesses. We must not increase their burden. To do so would be to ruin our chances of economic recovery at the outset. Restraint is necessary with regard to benefits. Civil service pay and benefits will be linked, in order to avoid further structural increases in unemployment. The best way to increase your income is to get a job.

Restraint is necessary in the private sector, because more than ten thousand people are now joining the ranks of the unemployed every month. Restraint in the private sector is in the hands of employers and employees. The government is convinced that they appreciate its importance. Work is, after all, more than just a source of income. It is a source of self-esteem and social participation. The impact of pay restraint will be mitigated by supporting measures to supplement the income of financially vulnerable elderly people and families. And measures to make sure it actually pays to accept work. The government will also put forward measures on the opening of the new parliamentary session, in the light of the impending recommendations of the Tabaksblat Committee, to curb excessive rises in the pay of top earners.
 
The government is fully aware that many measures in the coalition agreement are far-reaching. Take, for example - in the area of health insurance - the reduction in cover provided and the introduction of a compulsory excess in the state-funded insurance scheme. However, these measures are vital if we are to keep rocketing health care costs under control -  continuous rises in health insurance premiums are not an option. But these measures
are also responsible. Even when they have been introduced, people's own contributions to health care in the Netherlands will still be low by international standards. In addition, the government is devising a new health care system featuring a care allowance, which will ensure that the costs of care are distributed more equitably than is currently the case, and enable the care sector to use the available budget more efficiently.
 
Mr President,
The choice we face is not an easy one, but it is necessary and responsible. The Netherlands is at a crossroads. Do we opt for economic recovery and the tough action this entails? Or do we let things drift and drop further and further behind?
 
It might seem tempting to avoid painful measures altogether. But one thing is certain.  If we opt for this approach, the road to recovery will be twice as long and twice as difficult. In 1979, politicians and the social partners did not take the difficult policy decisions necessary for effective action. But in 1982 it was clear this choice could no longer be avoided. In 1991 the Lubbers-Kok government did have the courage to take action that was painful for a time, but effective. In so doing they paved the way for the 'Dutch miracle': almost uninterrupted strong growth between 1994 and 2001. We now need to act jointly and decisively, and take the road that leads to greater employment.
 
Mr President,
The government's ambitions extend beyond just tackling the recession. If we are to boost employment, we need to ensure the Dutch economy steps up a gear. Our success in this endeavour will ultimately depend on the private sector's innovative capacity and enterprise. But the government can make a contribution. Although government finances are tight, additional funds will be made systematically available for knowledge, education and research. An Innovation Platform will be set up, enabling the government to meet up with experts from the fields of education, research and business to devise a strategy for knowledge development. It is intended to be a catalyst to bring the best out of the Netherlands. Not compartmentalisation, but innovation and greater scope for creativity.
 
The government will seek a serious dialogue with the social partners in areas of shared responsibility, i.e. training and education, salaries and pensions, and employment. Tackling youth unemployment will be given high priority, to ensure that young people have prospects and that a generation is not lost to the labour market. The proportion of people in work can be increased by reducing the number of those who are unable to work through sickness or disability, by increasing the incentives for unemployment benefit claimants to find work, and by discouraging early retirement. We need to do so if we are to maintain a good system of basic social provision in the Netherlands that meets modern needs. A life-course savings scheme for families will be introduced to make it easier to combine work and care.

 

Mr President,
We must improve the standard of public services. This is something public sector workers also want, but in many cases lack the opportunity to do. Bureaucracy is stifling the initiative of entrepreneurs and professionals. It gives people an excuse not to feel responsible. We have become trapped in a vicious circle in which every problem and incident results in new rules, which in turn give rise to problems themselves. A situation, too, in which additional resources yield an inadequate return.
 
The government will have to reassess its performance. It is illusory to think that the government can remove or prevent every risk and inconvenience. We must resist the urge to respond to every incident by introducing new rules. We must make fewer claims about our policies, but live up to those we do make. Fewer regulations, but let us make sure the rules we do set are actually enforced. We will appeal more often to people's sense of responsibility and citizenship. We will restore the balance between collective and individual responsibility. Between rights and obligations. And work to restore the authority of the government. To achieve this, we need to modernise the way it operates and is organised. And to improve transparency, effectiveness and accountability.
 
The government wants deregulation in order to give greater scope to individuals and organisations. The government must define frameworks and monitor quality. This will enable school boards, parents, teachers and pupils themselves to decide how best to organise teaching at their schools. The government will make this possible through deregulation and combining budgets.

Central government will publish a single policy document on spatial planning. Provincial and municipal authorities will be given more leeway to devise a coherent and effective spatial and mobility policy. Regional diversity will also be reflected in cultural policy.
 
The pressure of regulation in the care sector must be drastically reduced. Where possible, normal market forces must be allowed to prevail. This means challenging care workers to provide good care at as low a cost as possible. And giving them the scope to seize opportunities to make improvements.
 
Top priority will be given to reducing the administrative burden, which impedes the growth of businesses. This applies to all sectors, agriculture being no exception. We will cast a critical eye over existing and new regulations, to assess whether they are useful and necessary. This includes European rules.
 
Mr President,
The government must lead the way, but it does not make society. The people who live in this country do that. By how they relate to each other. A society derives its strength from fundamental values. The government intends to make a specific contribution. Education, for newcomers too, forms the basis. The way in which people treat each other in the public arena is an important yardstick. However, it is not something the government can do alone. Society can only thrive if everyone is able, allowed and willing to participate. If people first assume their own responsibility and only then look to others or expect something from the government. One of this government's key themes is therefore 'Participation'.
 
Participation means parents who assume responsibility for bringing up their children. People who do not turn a blind eye to problems in their own neighbourhood. And also youth care institutions that coordinate their efforts, so that problems in individual families do not get out of hand. The government therefore intends to put its weight behind the improvement of youth care.
 
Participation also manifests itself in social activities. It is gratifying to note that there are already many volunteers who devote time and energy to, for example, cultural and sporting activities, or care for those in need, both in the Netherlands and further afield.
 
Participation is also about people who acknowledge their responsibility for the quality of their environment. Who see norms and rules not as government imposed, but something we all want. And who can count on the support of the government. To this end, surveillance officers and the police must have a far greater visible presence. The police will be given powers to take effective action. Citizens must have confidence that reports of crime will be followed up in earnest. This requires a better and coherent working police, Public Prosecution Service, judiciary and prison service.
 
Participation also means contributing to the protection and recovery of our environment, nature and thriving rural areas. Not just by the government, but also by private or voluntary initiative.
 
Participation also applies expressly to immigrants to the Netherlands. People who want and have permission to settle in our country cannot live on the sidelines of our society. To do so would be to do not only themselves a disservice, but also their children and the society in which they live. The government is therefore imposing more stringent requirements on newcomers to follow integration programmes. The assumption by immigrants of their own responsibility is essential. Becoming a member of our society entails making a personal commitment. Immigrants who make such a commitment are entitled to expect that they will be treated as fully fledged members of our society. Living in the Netherlands means accepting certain obligations.
 
A thriving democracy depends on committed citizens. Many people have the impression that their views are not reflected adequately in government policy. This leads to apathy. This government wants to demonstrate that having your say makes a difference. It therefore plans to improve governance and democracy. By reforming the electoral system to place greater emphasis on the personal mandate of individual elected representatives. And by giving ordinary voters the chance to elect their mayors.
 
Mr President,
We face major national problems, but we must not focus on them exclusively. The Netherlands is not an island. It does not just participate in the European Union, it is an inseparable part of it. Economically, politically and also as a community of values. In the coming period the EU will take on a new look with ten new member states, a newly elected European Parliament and a new Commission. The Convention and the forthcoming IGC must make the EU more effective. The government wants to be at the heart of the European debate, a role it will assume in a literal sense when the Netherlands holds the Presidency in 2004. We will have to have the courage to go forward decisively. Deepening is essential for widening. The financial management of the EU, the completion of accession negotiations with Bulgaria and Romania, the relationship between Turkey and the EU, the planned completion of the WTO development round, further harmonisation of asylum and migration policy, transatlantic relations and the fight against international terrorism and the proliferation of weapons of mass destruction will feature high on the agenda of the Dutch Presidency.
 
Cooperation between the countries in the Kingdom of the Netherlands can be strengthened. Here again, the responsibility of all concerned is of prime importance.
 
The government will also be an enthusiastic proponent of international cooperation. Because we view it as a moral duty to contribute to the development of poor countries. And because it is in our own interest to increase global stability by strengthening the international legal order. The government will continue to earmark 0.8% of GDP for development aid. It will endeavour to create a level playing field for poor countries, by for example improving access to markets and dismantling subsidies that distort trade. We will continue to work for international security through NATO and the EU. We will help combat terrorism by taking part in various operations, and will strive to promote peace and human rights elsewhere in the world. After Afghanistan, we will not evade our responsibilities in Iraq either. Our defence organisation will increasingly be tailored to such tasks.
 
Mr President,
These are difficult times. The government's message is accordingly a tough one. Clinging stubbornly to existing interests and rights is not a serious option for us. We will have to take a step back so that we can leap forward. In so doing we will have to share the burden fairly. At this moment, a truly social policy is a vigorous reform policy. Such a policy holds out prospects. For both young and old. For now and for the future. So it is with confidence that the government looks forward to the debate with this House and with the public. The government is taking the path to a better future. But this will only succeed if everyone feels involved and gets involved. In this case we can say 'many hands make more work!'