Verhagen: ‘Economic signals on amber’

News item | 09-12-2011

Following a Cabinet meeting, Deputy Prime Minister Maxime Verhagen has responded to the latest figures from the Dutch central bank, DNB. 'This is yet another signal that the economy is in turbulent waters.

'We already knew that the economic signals were on amber thanks to other evidence such as the latest quarterly figures from Statistics Netherlands,' said Mr Verhagen. 'And in the Budget Memorandum for 2012, we had already noted that, owing to the great uncertainty and disappointing economic forecasts, the budget deficit was falling more slowly than expected in late 2010.'

With world trade declining, Dutch growth has also slowed down. 'We need to remember that we can't make up for the growth we've already lost owing to the crisis.' Mr Verhagen stressed the importance of maintaining current policy, which focuses on healthy public finances and stronger economic earning potential.

Bank tax

The Cabinet has decided to present a Bank Tax Bill to the House of Representatives. The bill is intended to exact a contribution from the banking industry in return for the large-scale assistance it has received from the State. The bill will also strengthen financial stability.

In addition, banks will pay a higher tax on excessive payments to their employees. In Mr Verhagen's view, this will help the industry regain public trust.

Deposit guarantee scheme

Mr Verhagen said that the Government had recently introduced policy to improve the Dutch financial system. Today, the Cabinet has taken a decision on the deposit guarantee scheme.

'Specifically, we'll be setting up a revised deposit guarantee fund, which can be drawn upon if necessary. The banks will get 15 years to build up the fund.'

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