Dutch pension funds are prepared to invest heavily in housing, roads and infrastructure, mortgages and promoting sustainability, Nos television reports on Tuesday, quoting sources close to the talks.

The broadcaster says the pension funds’ plans will be presented to the cabinet later today and have been drawn up after a year of talks. Supporters think the funds’ involvement will help kick-start the economy and compensate for government spending cuts.

However, the plans are likely to be resisted by finance minister Jeroen Dijsselbloem because the funds are only prepared to make the investments if government is prepared to bear part of the risk, the broadcaster says.

Assets

The talks took place under the leadership of civil service pension fund manager APG and health pension fund manager PGGM. Between them, they have €500m under management, which is almost half of all Dutch corporate pension fund assets.

Last week, Labour leader Diederik Samsom added to pressure on the funds by calling on them to invest in the Netherlands.

Pension funds responded by saying they are prepared to look at how they can invest more in the Netherlands. But the interests of pensioners remain paramount and any investment must generate a proper, risk-free, rate of return, the Dutch pension federation said.

According to Nos, the plans which have been agreed include placing all mortgages with a national mortgage guarantee in a new organisation, known as the Dutch Mortgage Institution.

Although pension funds would invest in it, the government would have to guarantee any losses. Similar guarantees would have to apply to investments in renovating and improving the energy efficiency of housing as well as in infrastructure.