The same four parties. The same premier. Probably mostly the same ministers. Yet the fourth ruling coalition led by liberal Mark Rutte has struck a decidedly different tone when it comes to the Netherlands’ place in the EU. The new coalition agreement suggests The Hague will no longer act as a brake on the EU but as a locomotive. Rutte, who often relished his casting as Europe’s Mr No, now intends to be in the vanguard of European integration.
The Hague’s newly hatched enthusiasm for Europe bears the imprint of D66, the left-liberal pro-European party that was the big winner in the election. The big losers were the more Eurosceptic Christian Democrats. Rutte’s authority was weakened by the benefits scandal that brought down his third government and, chameleon-like, has an opportunity to reinvent himself.
But the new Dutch position is also a reflection of how geopolitical uncertainty, the pandemic and Britain’s Brexit mess have “reinforced the need for solidarity and collective action” within the EU, says Catherine de Vries, professor at Bocconi University.
The parsimonious Dutch who like to lecture other EU governments about fiscal discipline are turning on the spending taps. The incoming government will boost expenditure on housing, education, childcare and defence. It is creating a fund to finance decarbonisation worth a cumulative 4.3 per cent of gross domestic product and another one for rural diversification (including closing down polluting intensive farms) worth 3.1 per cent. Extra borrowing will push Dutch debt just above the 60 per cent EU limit. It is hardly the same category as Italy (155 per cent) or Greece (206 per cent), but the limit no longer seems sacrosanct. The agreement amounts to a “farewell to frugality”, according to Marcel Klok, senior economist at ING.
The four coalition parties now say they are open to the “modernisation” of the EU’s fiscal rules as long as its promotes fiscal sustainability and economic convergence. It is vague, but in line with the slightly more flexible approach promised by the new German coalition government.
After Britain’s departure from the EU, The Hague acted as ringleader of the so-called frugal states opposed to big EU spending, greater risk-sharing or any watering down of the bloc’s fiscal rules.
Rutte’s fourth administration also wants to become an advocate of deeper integration, such as ending national vetoes in foreign policy, strengthening the role of the European parliament and creating EU-wide carbon and digital taxes. Where a sub-set of EU capitals wants to pursue an initiative, the Dutch want to be in the vanguard.
The new Dutch stance is its second readjustment to post-Brexit Europe. The first was its leadership of an informal group of free-trading, economically liberal, fiscal hawkish governments, dubbed the New Hanseatic League, who needed to team up to defend their interests in place of their powerful British ally. The group shrunk to a hard core of frugals to try to block the EU dishing out recovery fund grants financed by common debt
Will they be the one in front of the train or the back?
People hated Rutte at the time, yet the push for economic reform and rule of law conditions for COVID relief funds was 100% the right call.
If the EU is just a piggybank for politicians to fund stuff that gets them votes – let’s be real a lot of EU countries have done this for decades – it will inevitably fail.
Fiscal integration means the rich parts of the EU will end up paying more. That’s only worth it and fair if the less wealthy parts of the EU change their economic policies to become more productive as well. The EU needs to be a rising tide that lifts all boats, not a river that flows from North to South/East. Central and Eastern Europe are doing much better in this regard than Southern Europe and it isn’t geographical determinism. There is no geographical reason for Estonia being wealthier than Portugal or Greece.
Can Ro into Schengen now pls?
Do note that trains in NL have a terrible track record during winter
Don’t know if it is true or not, but many French media said that Rutt and Macron are buddies. It seems a new boys band with Scholz, Dragui, Rutte and Macron will try to greatly improve the EU in four next years.
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The same four parties. The same premier. Probably mostly the same ministers. Yet the fourth ruling coalition led by liberal Mark Rutte has struck a decidedly different tone when it comes to the Netherlands’ place in the EU. The new coalition agreement suggests The Hague will no longer act as a brake on the EU but as a locomotive. Rutte, who often relished his casting as Europe’s Mr No, now intends to be in the vanguard of European integration.
The Hague’s newly hatched enthusiasm for Europe bears the imprint of D66, the left-liberal pro-European party that was the big winner in the election. The big losers were the more Eurosceptic Christian Democrats. Rutte’s authority was weakened by the benefits scandal that brought down his third government and, chameleon-like, has an opportunity to reinvent himself.
But the new Dutch position is also a reflection of how geopolitical uncertainty, the pandemic and Britain’s Brexit mess have “reinforced the need for solidarity and collective action” within the EU, says Catherine de Vries, professor at Bocconi University.
The parsimonious Dutch who like to lecture other EU governments about fiscal discipline are turning on the spending taps. The incoming government will boost expenditure on housing, education, childcare and defence. It is creating a fund to finance decarbonisation worth a cumulative 4.3 per cent of gross domestic product and another one for rural diversification (including closing down polluting intensive farms) worth 3.1 per cent. Extra borrowing will push Dutch debt just above the 60 per cent EU limit. It is hardly the same category as Italy (155 per cent) or Greece (206 per cent), but the limit no longer seems sacrosanct. The agreement amounts to a “farewell to frugality”, according to Marcel Klok, senior economist at ING.
The four coalition parties now say they are open to the “modernisation” of the EU’s fiscal rules as long as its promotes fiscal sustainability and economic convergence. It is vague, but in line with the slightly more flexible approach promised by the new German coalition government.
After Britain’s departure from the EU, The Hague acted as ringleader of the so-called frugal states opposed to big EU spending, greater risk-sharing or any watering down of the bloc’s fiscal rules.
Rutte’s fourth administration also wants to become an advocate of deeper integration, such as ending national vetoes in foreign policy, strengthening the role of the European parliament and creating EU-wide carbon and digital taxes. Where a sub-set of EU capitals wants to pursue an initiative, the Dutch want to be in the vanguard.
The new Dutch stance is its second readjustment to post-Brexit Europe. The first was its leadership of an informal group of free-trading, economically liberal, fiscal hawkish governments, dubbed the New Hanseatic League, who needed to team up to defend their interests in place of their powerful British ally. The group shrunk to a hard core of frugals to try to block the EU dishing out recovery fund grants financed by common debt
Will they be the one in front of the train or the back?
People hated Rutte at the time, yet the push for economic reform and rule of law conditions for COVID relief funds was 100% the right call.
If the EU is just a piggybank for politicians to fund stuff that gets them votes – let’s be real a lot of EU countries have done this for decades – it will inevitably fail.
Fiscal integration means the rich parts of the EU will end up paying more. That’s only worth it and fair if the less wealthy parts of the EU change their economic policies to become more productive as well. The EU needs to be a rising tide that lifts all boats, not a river that flows from North to South/East. Central and Eastern Europe are doing much better in this regard than Southern Europe and it isn’t geographical determinism. There is no geographical reason for Estonia being wealthier than Portugal or Greece.
Can Ro into Schengen now pls?
Do note that trains in NL have a terrible track record during winter
Don’t know if it is true or not, but many French media said that Rutt and Macron are buddies. It seems a new boys band with Scholz, Dragui, Rutte and Macron will try to greatly improve the EU in four next years.
Not being a hater, but [why repost? Same article was posted 2 days ago.](https://www.reddit.com/r/europe/comments/rlgfp9/dutch_vow_to_be_eus_locomotive_rather_than_brake/)
Who’s going to be the caboose?
Stop blocking the West Balkans then?
Cant stand this guys anymore. Pls just stay quiet for a while. And that Rute..
sure rutty, sure – stop impeding our schengen entry, then I’ll believe ya
Locomotive that is Great
as long we can be tax shield for the rich corporations :))