Cabinet will cut funds for 2.2 billion euros | Inland

According to The Hague sources, this will probably be the outcome of the discussions about the Spring Memorandum. In recent weeks, VVD, D66, CDA and CU have discussed, among other things, the billions of holes that had arisen in the budget, partly due to the savings tax debacle, but the cabinet is also drawing a lot of money. For example for Defence, where the entire House of Representatives asked for extra money earlier this year because of the war in Ukraine and the threat from Russia.

That money will come, Minister Ollongren (Defence) will reportedly receive an additional 2.4 billion euros per year. This means that the Defense budget should finally take a major step towards the NATO standard, which requires countries to use 2 percent of their economy for Defence.

2.2 billion austerity

But cuts are also being made, although the coalition previously had little appetite to cut its own flesh. But that will now happen: 2.2 billion will be cut in the climate and nitrogen fund and the Wopke/Wiebes fund. The climate fund has to bleed a little more than the other two funds.

Insiders point out that the goals of those funds remain unchanged, but that the coalition wants to see whether they can now also be achieved with less money. A source also notes that it is questionable whether it will be possible to spend the remaining money in view of the severe shortage on the labor market.

Minimum wage

In an attempt to do something extra next year to the purchasing power of lower incomes, the coalition also wants to increase the minimum wage more quickly. The coalition agreement already included a 7.5 percent increase in the minimum wage, but the first step would not be taken until January 1, 2024.

That is now being worked on earlier: in 2023 the minimum wage will then increase by 2.5 percent. The same step will therefore be taken in 2024 and 2025, so in total the wage increase will remain at 7.5 percent.

The Coalition and the cabinet have discussed the Spring Memorandum extensively in recent weeks. Prime Minister Rutte and Minister Kaag (Finance) also looked for support from the opposition, but were mainly told very expensive demands and came back empty-handed. This week the coalition therefore worked out a package among its own ranks, which still has to be dealt a final blow on Thursday and Friday in the coalition and the cabinet.

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