NL seems to have lost faith in the market, says finance minister

Finance minister Eelco Heinen presented the right-wing government’s 2025 budget to parliament on Tuesday, saying that the country appeared to have lost its faith in the market.

“We seem to have lost our belief in a market economy somewhat and our trust that letting go can lead to something great,” he said. “The government does not have to subsidise and compensate for everything. People flourish in freedom, as does innovation. And that is what we need to drive up productivity.”

The Netherlands’ prosperity is down to working hard, making the right choices and being thrifty, Heinen said. Nevertheless, people have financial worries, are concerned about housing and paying their bills.

“In a decent country, where there is always room for people in need, you should not have to worry about uncontrolled immigration, but should know that we have a grip on what society can deal with,” he said. “And yet, there are worries about this and we have to take them seriously, but that also involves making choices.”

The reasons for the Netherlands’ prosperity are coming under increasing pressure, Heinen said. “The Netherlands is an open economy and profits from trade. The EU internal market is very beneficial for us and it is crucial we remain a part of this and strengthen our position.”

Yet calls within the EU for state support, in the light of the situation in other countries, can damage the economy in the long run, he said.  “How we grow is also important, because prosperity is about more than money,” he said.

“The  bill has to be paid and that is why we are opting for fewer subsidies, cost savings within ministries themselves, cutting back on development aid, and increasing value added tax on culture and hotels,” Heinen said.

“We realise that these choices are not without pain but difficult choices are part of taking responsibility,” he told MPs.

“Although the government debt is currently low, we can see it rising with expenditure and we need a change in direction. We need to get back to budgetary discipline and clear agreements about spending.”