2023-05-24 14:09:51
The Netherlands must limit energy support from the EU and encourage work through permanent appointments in order to reduce the staff shortage. The European Commission also asks for a little more economy in a list of recommendations. Despite the difficult economic times, the budget deficit should not increase too much.
Every six months, the European Commission tries to put its finger on the sore spot with a few firm recommendations. The Netherlands has often been reprimanded for the inflated housing market and excessive mortgage debt. These problems are partly caused by the mortgage interest deduction. We also heard that the Dutch work too much part-time and that we do have a lot of cows for our land area. Such remarks are still in it now.
But now the limitation of energy support predominates. The Netherlands now eases the energy bill for everyone through an energy ceiling. Europe believes that it would be wiser and less costly if aid next year was mainly aimed at citizens who desperately needed it.
The European Commission would also like to see us continue to focus on energy savings for households and businesses, stimulating the use of renewable energy and expanding our power grid.
To tackle staff shortages, the European Commission recommends discouraging working via flexible contracts and temporary contracts. The Hague might also encourage additional training and retraining.
Again that high mortgage debt
Once once more this year, the European Commission has highlighted our exceptionally high mortgage debt. We should lower that. Because mortgage interest is deductible, homebuyers are in a sense encouraged to take on high debt. The European Commission is also proposing to make renting in the private sector more affordable.
The European points of criticism or recommendations have not yet had any direct consequences. However, Europe increasingly wants to see such reforms in exchange for money from European jars. For example, member states can receive money from the corona recovery fund of more than 800 billion euros, but only if they spend it on reforms. The European Commission believes that the Netherlands should continue with these investments.
Europe asks The Hague for economy
It is interesting that the European Commission is also taking a critical look at the Dutch budget, now that new budget rules are being discussed in Europe. The norms for the budget deficit (expected expenditures minus expected revenues) and government debt are unlikely to change, but how countries should adhere to them may. Europe wants to make improvement plans together with member states.
This year the budget deficit will remain just within the European norm: a maximum of 3 percent of the gross domestic product (GDP, everything that citizens and companies earn in a year). This is in contrast to 14 other countries with too high a deficit. And Finance Minister Sigrid Kaag also expects a deficit of 3 percent in 2024. However, the deficits are likely to increase in subsequent years.
Europe is now asking in its recommendations to keep the deficit below 3.5 percent in 2024. This is remarkable, since the standard has been a maximum of 3 percent of GDP since the introduction of the euro. More room is probably given in the recommendations because of the effects of the Ukraine war. In European treaties, the 3 percent remains sacred.
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