8 things to know about the new Dutch government – POLITICO

AMSTERDAM – New year, new Dutch government.

After 271 days of difficult negotiations, described by a political heavyweight as “delivery to the forceps”, the Netherlands will sit a new government on January 10 after centrist D66, liberal VVD, the Christian Democrat CDA and the Christian Union reached a coalition agreement last month. .

According to the coalition deal unveiled in December, the traditionally frugal country is on the verge of spending big and tackling some costly issues that have gathered dust over the past year.

From confrontation to industrial espionage to betting on nuclear energy, POLITICO presents the key things to know for European officials who will be working with the new government of Prime Minister Mark Rutte.

Rutte remains in place – for now

Mark Rutte, who has been in power since 2010 and is the second EU head of government after Viktor Orbán, is preparing to live through difficult years.

Over the next term, his government faces three parliamentary inquiries, the most powerful tool Parliament has to scrutinize the work and policies of an incumbent government: one on a child benefit scandal that has overthrown the previous government of Rutte in 2021; another on the government’s handling of the coronavirus crisis; and a third on the problems of extraction and compensation around the gas fields of Groningen.

It remains to be seen whether Rutte and his government will survive the inquiries, but a record is in hand: by October 2022, he will be the country’s longest-serving prime minister.

Finance and Foreign Ministers change seats

Outgoing ministers Wopke Hoekstra, CDA, and Sigrid Kaag, D66, switch to the new government, Kaag taking over as finance ministry and Hoekstra becoming foreign minister.

The move is widely seen by analysts as an attempt by all parties to take their part in international affairs, with Rutte retaining his seat on the European Council, Kaag joining the ranks of EU finance ministers and Hoekstra in search of something more European: “Europe is on the eve of a critical period,” he told a local newspaper.

Kaag, who will be the Netherlands’ first female finance minister, said this role is crucial in delivering on issues such as education, climate change and a “strong Europe”.

Hey, big spender

The Dutch are set to spend big with € 29 billion in extra spending on the books for 2025, the new government’s last year in office – a huge spending spike. With virtually no austerity measures in the deal, spending is mostly funded by loans.

The Netherlands, one of the few European countries to have a negative interest rate, aims to take full advantage of the economic status quo, increasing its cumulative spending over the next four years by € 8 billion per year. next year to the aforementioned 29 billion euros in 2025, reaching just over 60% of the national debt to gross domestic product by 2025.

In addition to spending that is part of the state’s annual budget, the country will create several separate funds, including a € 35 billion climate fund to be set up over the next 10 years and a € 25 billion nitrogen fund. ‘euros, aimed at reducing the Netherlands’ nitrogen emissions.

Go nuclear to fight climate change

In a strong national push for the use of zero carbon energy, the new government is betting on the nuclear option, laying out plans for the construction of two nuclear power plants, as well as a decision to extend the lifespan of the Borssele nuclear power station.

D66 leader in parliament Rob Jetten will join Cabinet as Minister for Climate and Energy. Jetten, who is only 34, has made a name for himself as a staunch party man with a streak of activists, especially when it comes to climate policy and gay rights, which has led the former leader of the VVD party, Klaas Dijkhoff, to call him “a climate stalker” during the Provincial Council elections of 2019. Jetten has since worn the nickname as a badge of honor.

The government has introduced more ambitious climate targets to be achieved by 2030, but the Dutch Environmental Assessment Agency has poured cold water on the coalition’s calculations. Can the Netherlands reduce emissions by 60% from 1990 levels by 2030? “The chances of achieving a reduction of 60% or more are extremely slim,” their agency said.

Cybersecurity and espionage

On cybersecurity, the government has a clear message to cyber spies and digital disruptors who are eyeing critical technology and the country’s intellectual property: stop it, or else.

The Justice Ministry, which will oversee the response, will be headed by Dilan Yeşilgöz-Zegerius of the VVD. The appointment of Yeşilgöz-Zegerius has raised eyebrows in the Dutch legal sector as she will be the first justice minister without legal training. She was, however, her party’s spokesperson for justice and security before becoming interim secretary of state for economic and climate affairs in the previous government.

In the coalition agreement, the parties said they intended to allow intelligence services to disrupt state-backed hacking attacks and authorities to continue espionage, a move widely seen as the continuation of an increasingly clever cybercrime program. Officials last month discussed a possible interim law that would allow Dutch intelligence services to conduct investigations in countries with offensive computer programs.

These projects will appeal to digital security services in the United States and beyond, with which the Dutch have developed strong ties in recent years. The Netherlands has long been seen as a prime target for intellectual property theft, and its intelligence service has singled out China.

Taxes, taxes, taxes

The new government is supporting a multitude of new financial levies.

“We are committed to a digital services tax, an airline tax, a CO2 border tax and a minimum profit tax rate to prevent competition unfair between the Member States “, indicates the agreement, stressing however that the Dutch are keen to keep the income:” In principle, these will be collected at national level.

In July, the Commission unveiled plans to tax imports of steel, iron, cement, aluminum, fertilizers and electricity based on their carbon content, and said revenues would go to the EU budget. But the Dutch and others prefer that the border levy and the use of the proceeds be negotiated separately.

Like the new German government, the Dutch coalition will also introduce a floor carbon price for allowances under the EU Emissions Trading System. This will be a rising price, with “any financial gain (…) returned to the climate fund for companies to make their operations more sustainable.”

Night train gain

Coalition members, spurred on by the D66, jumped on the revival of the trans-European train, saying they “want rail transport to become a good alternative, in terms of cost and time, to flying in Europe”.

To achieve this, the Netherlands, which currently has several overnight rail links, including links to Vienna and Berlin, wants to expand their international rail network in the coming years, with potential links to Prague and Zurich.

In the agreement, the Dutch also want to tax aviation fairly by creating “a level playing field within the EU and the EU vis-à-vis third countries”.

Dutch strategic autonomy

It is a term generally associated with industrial powers such as France or Germany, but the new Dutch government is determined that the EU and the Netherlands become strategically autonomous.

Regarding industrial policy, the agreement says: “We seek strategic autonomy through the production of crucial (semi-finished) goods in Europe and by protecting vital processes and preventing unwanted control in companies. vital.

VVD MEP Liesje Schreinemacher will be the new Minister for Foreign Trade and Development Cooperation. As a member of the Renew Europe group in the European Parliament, she lobbied to create a two-way street regarding trade with China, saying, “Chinese companies should no longer be allowed to sell us things like so many buses. that European companies don’t stand a chance in the Chinese market.

Laurens Cerulus, Karl Mathiesen, Simon van Dorpe and Paola Tamma contributed reporting.

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