How to raise €35bn: make cuts, put up taxes
Increasing the own risk element in health insurance to €775, cutting the minimum wage by 10% and reducing basic welfare benefits – these are just some of the ways the government can get its spending under control, according to civil service recommendations made on Thursday.
The recommendations are the work of 20 government working parties, set up to indentify ways of boosting the government coffers by a structural €35bn. The Dutch budget deficit is set to reach 6% this year.
The working parties were set up last year, before the cabinet collapsed, to suggest spending cuts and tax increases which would effectively amount to a 20% reduction in ministerial budgets.
General election
The groups were asked to speed up their work, so the suggestions can be included in political party manifestos ahead of the June 9 general election.
The proposals range from bringing in extra charges for rush-hour travel, slashing civil service numbers and bringing in a €5 fee for visits to the family doctor.
Unions have already condemned some of the suggestions, saying they will increase divisions between rich and poor.
Drastic action
Prime minister Jan Peter Balkenende said the new government will not be able to avoid drastic action.
The 20 reports offer ‘very great insight’ into the options to make savings, the prime minister told reporters. ‘It is now up to political parties to state what they will or will not do.’
The current cabinet is not able to take any action because it is in a caretaker role.
Each of the recommendations has a price tag attached, allowing parties to pick and choose the various elements.
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(Sources, Financieele Dagblad, Telegraaf and Volkskrant)
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