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Rutte delivers new government's policy statement

News item | 26-10-2010

The government will do everything it can to make the Netherlands 'stronger, safer and more prosperous,' said Prime Minister Mark Rutte in the statement of policy he delivered on 26 October 2010 to the House of Representatives.

In this statement, the new Prime Minister presented his government - a coalition of the free-market liberal VVD and Christian Democratic CDA - and its main plans for its term of office. He explained that the government's parliamentary support agreement with the Freedom Party (PVV) ensures a parliamentary majority on key policy areas.

Netherlands can set example

Prime Minister Rutte said in the statement that there was no reason for despair, as 'the Netherlands has everything it needs to set an example for Europe and the world. The Netherlands is the sixteenth-largest economy in the world. The fifth-largest investor. The second-largest agricultural exporter and the seventh-largest trading nation. That is the Netherlands' strength.'

'We have an optimistic message for the people of this country: we can emerge from the crisis stronger than we were before', said Mr Rutte. 'That, ultimately, is what motivates this government.'

Reforms

To emerge from the crisis stronger, two things are required, said the Prime Minister: 'a rapid restoration of public finances and reforms. We must prune in order to grow.'

The global crisis hit Dutch public finances hard. The economic recession meant lower tax revenues while expenditure continued unabated. This led to a high national debt and high budget deficits.

'It is our duty to reduce this debt as rapidly as we can,' said Mr Rutte. 'To ensure we do not simply pass the bill to future generations. That would be irresponsible. Especially considering that, with the onset of demographic ageing, an ever-decreasing number of working people will need to support an ever-increasing number of non-working people.'

The government is therefore taking strong measures, which will restore the foundations for a balanced budget by 2015, according to the policy statement. 'These measures will make the Dutch economy stronger and more dynamic, giving people and businesses greater freedom.'

According to the Netherlands Bureau for Economic Policy Analysis, structural budget cuts of €29 billion need to be made to restore the public finances to long-term health. This government will solve more than 80% of the problem, said Mr Rutte, not only by making €18 billion worth of cuts in this term of office, but also by raising the state pension age.

To realise the major savings that are necessary, the government will also be cutting its own ranks, the Prime Minister said: 'We want a smaller, but above all more efficient, government.'

Investment

The Netherlands has weathered the storm of the crisis relatively well, said Mr Rutte. 'People have gone on working and companies have kept on doing business. We must continue to distinguish ourselves as an innovative and resilient economy.'

The government is therefore investing in proposals with that end in view: 'Improving education. Reducing the regulatory burden. Creating a more attractive investment climate. Increasing scope for innovation and for initiatives from the business community.'

The government also plans to invest in roads and railways and in renewable energy.

Public safety and enforcing limits

The government will take a variety of measures related to immigration and integration. In the future, for example, immigrants will have to pay for their own civic integration courses, if necessary with help from a system of loans.

A more robust approach will be taken to antisocial behaviour, aggression and violence, for example by adding 3,000 new officers to the police force.

'In short, this government will give people opportunities, but we will also set clear limits and see to it that these limits are enforced,' said the Prime Minister.