Kaag spoke the ominous words on arrival in Brussels where she is present at a meeting of the Eurogroup, where all finance ministers in the euro countries talk about European financial policy.
The Netherlands will endorse a statement there that the euro countries will be reluctant to provide financial support to their citizens and companies now that inflation is not decreasing. “We have to realize that collectively we will become a bit poorer,” says Kaag. “Wanting or being able to continuously compensate is simply not possible, it is not financially sustainable.”
Money for low incomes
Last week Prime Minister Rutte promised to give the lowest incomes more money:
–
–
According to Kaag, economic developments are not looking good, especially due to the war in Ukraine. The prices of energy and food, among other things, will continue to rise, which will hit people who already have a hard time making ends meet. “I think that continuous attention should be paid to that,” she says.
New inflation figures
The European Commission will release new growth forecasts and inflation figures for the EU later this week. Average growth is expected to be lower and inflation higher than anticipated earlier this year. However, Kaag does not want to anticipate possible cutbacks. “We have to see what else is coming our way first.”
At the same time, investments agreed in the coalition agreement, and reforms and investments at European level, are also needed for the future. These include combating climate change, the nitrogen problem, educational reform and reducing dependence on Russian energy.
–
–
