Dutch Prime Minister Outlines Stimulus Measures

by Ulrika Lomas, Tax-News.com, Brussels

02 April 2009

The Dutch Prime Minister Jan Peter Balkenede has released a statement outlining the government's EUR6bn stimulus package and its plan to increase expenditure significantly. The government believes its latest package will boost consumption and the domestic economy by EUR50bn in 2009 and 2010.

Under the plans, the government aims to stimulate the economy and maintain employment, partly by introducing part-time unemployment benefit. Where job losses are unavoidable, retraining schemes will be introduced, Balkenede informed.

Investment will also be increased into energy security and innovation. Proposals will include a scheme for encouraging the scrapping of older cars and for insulating homes. Expenditure will also be increased for schools and hospitals. Planning permission procedures will also be accelerated to allow for businesses to undertake construction projects more quickly.

Within the government’s stimulus package Schipol airport will also gain support with liquidity boosts and the abolition of flight taxation.

Turning to discuss more long-term reforms, which will allow the government to offer 'good health care, good education and a good pensions', Balkanede warned that it would be necessary to increase the state retirement age to 67 and increase taxation on owners of homes worth more than EUR1m.

“The reforms are necessary and fair, but we realise that they will have far-reaching effects. That is why they will be introduced gradually, beginning in 2011,” concluded Balkanede.

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