ORDINARILY, WHEN the EU favours a flood of collective spending, the Dutch put their collective finger within the dyke. In 2020 the Netherlands rallied a gaggle of small, wealthy international locations (the “frugal 4”) to oppose the EU’s covid restoration fund. They ultimately gave in, however not earlier than Wopke Hoekstra, the then finance minister, insulted southern Europeans for missing finances self-discipline. This week a brand new Dutch authorities took workplace. It includes the identical events because the earlier one, but its stance on the EU is way extra relaxed.
Mark Rutte, the Liberal prime minister, is again for a fourth time period, however has turned boosterish on Europe. Simply as vital is the brand new finance minister, Sigrid Kaag of the centre-left, pro-EUD66 social gathering. Finance is probably the most highly effective ministry, and has largely run the Netherlands’ EU coverage for the reason that euro disaster of 2010-12. Mr Hoekstra, a Christian Democrat, has been shunted to international minister. This will likely appear an odd match, however Mr Hoekstra incarnates an outdated adage in regards to the nation’s diplomacy: “I'm Dutch, so I could also be blunt.”
Finance ministers are sometimes common within the Netherlands. Successful the submit is testomony to Ms Kaag’s bargaining expertise, honed as a UN diplomat within the Center East. The coalition negotiations lasted 9 excruciating months. Hanging a deal required the events to commerce favours, resulting in some relatively un-Dutch plans for giant spending. They embody a local weather fund of €35bn ($40bn) by 2030 and reimbursing 95% of child-care prices as much as the age of 12. Authorities debt will rise previous the EU’s notional restrict of 60% of GDP.
Dutch flexibility can be welcome in Brussels, the place France and Italy wish to loosen the finances guidelines completely. The brand new authorities might go alongside, with circumstances. It additionally backs letting the EU elevate extra of its personal taxes, together with a carbon tariff on imports. As an alternative of clubbing with small thrifty states, it's going to work with the EU’s powerhouses, France and Germany.
The Netherlands’ tone has modified, however its pursuits haven't. As a rustic that trades lots and has a giant monetary sector, it felt nearer to Britain than to France till Brexit. It stays much less statist than most EU members. “We are going to proceed to be a liberal outpost in Europe,” says Hans Vijlbrief, a D66 minister who has labored on the finance ministry and in Brussels. However they could be much less blunt about it. ■
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