The Hague: Noureddine Amrani

According to the plans of the ruling coalition comprised of the D66, the People's Party for Freedom and Democracy (VVD), and the Christian Democratic Appeal (CDA), the purchasing power of middle-income and low-income households, as well as those receiving various forms of social benefits, will decline. This is according to calculations by the Central Planning Bureau (CPB) and the Spatial and Environmental Planning Bureau (PBL). Purchasing power is expected to decrease by approximately 0.4 percent, and low-income earners in the Netherlands will be particularly affected in terms of funding the military and defense.

The parties have announced significant austerity plans for the healthcare sector (€7.9 billion) and increases in income tax burdens. These measures will exacerbate the already high cost of living and add to the financial strain caused by the increased maximum deductible (franchise) for health insurance and the reductions in various benefits, such as disability benefits (WIA) and unemployment benefits (WW). Job security (income security) will also decrease, according to researchers.

The planning bodies (CPB and PBL) believe that the various measures the government is taking to curb healthcare spending will particularly affect those with already low incomes. For example, the bottom 40 percent of income earners in the Netherlands will lose 0.5 percent of their purchasing power, while the top 20 percent will experience a 0.3 percent decrease.

To finance ambitious projects in areas including defense, the parties announced significant austerity plans for the healthcare sector (€7.9 billion) and increases in income tax burdens. For example, income tax brackets will not fully adjust for inflation, meaning households will experience less progress in the long run. Planning offices calculate that the billions of euros in burdens imposed by the government will disproportionately affect households, while businesses will be somewhat spared. As a result, researchers predict that more people will face poverty in the long term.

Due to austerity measures in the healthcare sector, demand from households may also decrease. According to the Central Planning Bureau (CPB), the increased maximum discount (franchise) and various reductions will lead to "reduced care and/or a decline in quality." At the same time, there will be "higher financial constraints."

While burdens increase and billions more are spent on defense ambitions, government spending will remain reasonably under control in the coming years. The budget deficit is projected to remain below 2 percent of GDP until 2029, the target set by this government. However, there is a strong possibility that further austerity measures or increased spending will be necessary before 2030, at which point the deficit will reach 2.2 percent of GDP. Meanwhile, public debt is rising moderately to 46.8 percent of GDP, an increase of 0.2 percentage points compared to what it would have been without the Geten government's plans.

Given the lack of long-term vision in these plans, government spending will increase significantly in the long run. While there are ambitions to invest billions of euros in housing, climate, nitrogen, and defense, the necessary funds are not currently available. At the same time, the Netherlands will face a rapidly aging population, leading to a substantial increase in government spending on healthcare. Therefore, by 2060, public debt is projected to reach 137 percent, more than 19 percentage points higher than it would have been without the government's plans.

The new Prime Minister, Rob Jatte, presented his government program to the Dutch Parliament today. The new government is scheduled to be sworn in by King Willem-Alexander next Monday in The Hague. This ceremony, known in Dutch as "Bordes," marks the beginning of the new government's implementation of its program. The government, in its minority form, will seek parliamentary support for its program, which is expected to face opposition from some political groups. These groups have expressed their dissatisfaction and protest against the program's impact on the purchasing power of middle- and lower-income citizens. They have also voiced their opposition to increasing the defense budget at the expense of economic and social security for citizens—a policy, according to the socialist and Christian parties in the Netherlands, designed to appease the wealthy and corporations.