Billions will come for ‘Wopke-Wiebesfonds’ anyway

Later this morning, the cabinet will present the ‘National Growth Fund’, for which a total of 20 billion euros can be borrowed over the next five years. That money should be used for long-term investments, such as projects in knowledge development, infrastructure, research and innovation.

Initially, the idea was that the government would release a much larger amount for the so-called Wopke-Wiebes fund, named after the two initiators: ministers (Wopke) Hoekstra and Wiebes. There was talk of 50 to 100 billion euros. As far as Minister Hoekstra of Finance was concerned, the government would borrow that money in one go and put it in a state investment fund. Since interest rates are so low now, that would be beneficial.

But his officials came up against that. They warned him that “taking debt to invest is risky,” it emerged last summer internal documents (.pdf). “The scenario of negative returns is realistic and creates a political risk of failure.”

That is why the cabinet does not choose to borrow an enormous amount of money in one go, but wants to increase the national debt by an additional 4 billion euros annually to fill the fund.

Wishes vary widely

The idea behind the fund is to invest outside the political agenda in developments that contribute to economic growth and to achieving the Paris climate goals. That is why an independent committee will assess who will receive the money.

Projects receive a one-off amount, not structurally. Nevertheless, that committee will ultimately only give advice, which the cabinet can adopt. The House of Representatives can still block investments. This fund is therefore not completely separate from politics.

The wishes are already very diverse. For example, there is a call in the House of Representatives to use the money to extend the North-South line in Amsterdam, to broaden the track in South Holland and to build a fast train connection to Groningen. But there are also voices of investing in toddler education, hydrogen infrastructure or biotech companies.

No concrete projects yet

According to Prime Minister Rutte, such a fund is a good idea right now. “Because if people, companies and the government are resilient and agile, we will also be able to better absorb unexpected blows in the future.”

The cabinet will not announce concrete projects today. In the near future, people and organizations can register if they think the money should go to their plan.

Whether the fund will actually increase to 20 billion euros also depends on subsequent cabinets and whether they see the need for it. The first 4 billion euros must be in the fund by 1 January.

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