Everyone will be hit by government spending cuts, but the future prospects are good, queen Beatrix said in her traditional speech to open the parliamentary year.

Members of parliament,
Our country’s economy is going through difficult times. Over the past few years, in spite of the crisis, mass unemployment and an increase in failed businesses have been avoided. Our economy and the labour market have proved to be resilient.
The position of the Dutch economy is a good one but the decrease in world trade means that economic growth for next year will be lower than originally expected. The European debt crisis may also influence the economy. The Netherlands, with its dependency on export, will be especially vulnerable. It is understandable that international developments and the speed with which they are happening cause feelings of insecurity.
In order to secure future prosperity, this government has devised a two-pronged approach: creating healthy government finances and strengthening economic growth. These interlocking elements form the basis of every government proposal for this parliamentary year.
The serious debt problems of some European countries show that large and lasting deficits are a danger for prosperity. That is why we need to control spending and lower the deficit. The year ahead will be a year of far reaching cutbacks which will leave no one untouched. The government is convinced, however, that a solid budget has to go hand in hand with reforms which will promote economic growth.
This vision is fundamental to the government’s intention to tackle today’s problems in order to create opportunities for tomorrow. It takes into account that the strength of the country lies in its 16 million citizens. The country needs a compact government apparatus which gives businesses and citizens more room for manoeuvre. This is why the government is proposing to decrease and simplify government regulations, so as to stimulate creativity and innovation. Less bureaucracy will give people in public services more opportunities to use their skills.
A government which promotes individual development contributes to a cohesive society. The government is implementing an immigration policy which stimulates involvement in society. That is why immigrants are asked to pay their own way and respect the laws of the land and the values that bind us.
The 18 billion austerity package will leave no on untouched. Almost all will see a decrease in spending power. Many allowances will be affected. This governments feels that no one is being helped by being dependent. That is why it favours a policy of financial independence and involvement in society. However, people who are truly incapable of earning a living, through illness or impairment, will be spared as much as possible.
The government has first and foremost looked at itself when deciding on the cutbacks. Some ministry departments have already disappeared and the number of civil servants and government buildings will go down in the years ahead. The same is happening in the provinces and the local councils. Where possible and useful, the local councils will take over government tasks. Examples include youth care and social workplaces. In this way councils can cater to individual needs and save money at the same time.
A smaller government apparatus is vital for our capacity for economic growth. A society that stimulates people to become active and give the best of themselves needs a facilitating government, not an intrusive one. Entrepreneurs and scientists are already working together in ten top sectors which can hold their own with the best in the world. Our knowledge of water, energy and agriculture are but a few examples. It can contribute to the solution of such complex problems as climate change and the shortage of base materials while at the same time strengthening our economy.
A properly functioning internal European market and a stable euro are essential to the economic goals set by the government. People have to be able to trust the value of their savings and pensions. That is why the government has been forced to invest heavily in the banking and insurance sector. Now the government asks the banks and insurers to make a contribution in the shape of a bank tax from 2012.
The growth of our economy is closely linked to education. Education is a fundamental ingredient of our capacity to be competitive and gives people a chance to develop their talents. That is why the government wants to improve the quality of education. In primary and secondary education teachers and students will be stimulated to do better. Teacher training colleges must set higher goals and students will be examined according to national criteria. In order to recognise good practice among teachers, the achievements of schools and teachers will have to be measured. The main task of teachers will be to teach. Government proposals are in the making.
University students’ contributions will go up. The money will be used to invest in better quality training programmes. The government will engage with universities and higher education colleges to talk about concentrating training programmes, stimulating excellence in research and bridging the gap to the labour market. This is also needed in vocational education which should centre around excellence in workmanship.
The government feels that education is at the heart of its mission. This is also true of safety, health care and social security. These areas need structural strengthening as well.
Safety is a basic need. A national police force is necessary to tackle crime more forcefully. The government is thinking of crimes that have far reaching consequences for people and society. These would include child abuse, shop robberies and street crime. Organised crime will also be targeted, notably human trafficking, drug trafficking and financial crime. The victim’s position will be improved by making it possible to confiscate the possessions of the criminal in an early stage with an eye on damages.
In the Dutch care system solidarity between the young and the old and the healthy and the sick is an important principle. The government wants it to stay that way and will spend 15bn more on health care in spite of the enormous austerity drive it has set in motion. In future a similar increase in spending will not be sustainable. Premiums will go up and health care will take up a disproportionate part of the budget. In order to guarantee affordable health care the government has made an agreement with hospitals, specialists and health insurers about payment per medical intervention and brining down the growth of care costs. It will also be possible for insurers and hospitals to negotiate freely about the care on offer.
The dependency on personal health care budgets is growing in such a way as to make it irresponsible to continue without making substantial changes to its present form. People who are in institutions will still have a personal health budget. For people who are not adequate health care will, of course, still be available.
Social security and pensions are also areas which need changes in order to protect their future. The government is proposing a labour market policy in which work prevails over benefits. Taking into account that people live longer, it is logical that we should work longer. In the coming parliamentary year the government wants to discuss with you the government bill to up the retirement age.
The government will give councils more opportunities to get people into work and make a more effective use of reintegration budgets. The Wajong allowance for young disabled people, social workplaces and the law Werk en Uitkering (Work and Benefits) will be joined to form a new law called Werken naar vermogen (Work according to ability). For young people who have been declared unfit for work nothing will change. The same goes for severely disabled people in social workplaces.
In order to maintain a basis of social support for our social system, benefit fraud will be punished more severely. The same goes for companies which do not adhere to the regulations surrounding working conditions.
The government is very conscious of the open character of the Dutch economy. The increasingly international ties between people and countries and the shift in international relations ask for an active attitude. The worldwide economic interests of the country are of great importance. The government wants to do more to accentuate these interests fully in our foreign policy. Economic diplomacy will be stimulated and the promotion of Dutch business in the framework of foreign aid are some examples of this. The Netherlands will continue to honour its international foreign aid obligations.
An important foreign policy goal will be the promotion of democracy and human rights and of stability and peace. The Dutch men and women in Afghanistan and elsewhere in the world who are doing their best to achieve this goal deserve our full support and appreciation.
Members of parliament,
The present economic situation has to be addressed. The austerity package is an extensive one. Spending power will be affected. Economic and social insecurity is testing our capacity to cope.
But there is also room for optimism. Our country is in a relatively good position. The measures proposed by the government are aimed at maintaining that position and safeguarding our prosperity. The government appeals to all here present to make this possible. We call on you in these difficult times to work together and build a strong society and a strong economy in the best of Dutch traditions. In this, we feel closely allied to the other countries in the kingdom and the Caribbean islands that have recently joined the country as special municipalities.
Members of parliament, you have a special responsibility. The government is looking forward to an intensive and open exchange of views and wants to work with you in order to achieve broadly accepted solutions. You are supported in this arduous task by the knowledge that many wish you wisdom and, with me, pray for strength and God’s blessing on you all.
This is an unofficial translation