Samsom: Cabinet Must Stimulate Spending
THE HAGUE, 26/06/13 - Labour (PvdA) wants to formulate a plan in negotiations of new cutbacks for 2014 to invest billions in hoarded money in the economy, said PvdA leader Diederik Samsom Tuesday in an interview with De Volkskrant newspaper. But virtually the entire opposition reacted dismissively.
According to Samsom, the cabinet should not confine itself to getting the budget in order, by assembling a package of 6 billion in spending cuts and tax increases this summer. “It is time to give the economy a big impetus, so that there will be work again and building will start again.”
Samsom wants to offer financial incentives for pension funds and institutional investors to enter the mortgage market. He also wants the government to guarantee small and medium-sized companies on a larger scale when they want to borrow money from the banks for investments. The PvdA leader also wants an investigation of voting-right BVs, in which money for golden handshakes and severance packages are placed in order to avoid high taxation.
“The time for waiting until things get better is really over. It is time to give the economy a strong impulse, so that work will return again and building will start again. We must lure people. I expect the cabinet to drop all reticence about this now.”
The conservatives (VVD) and PvdA have been in secret negotiations on the budget for 2014 since last week. These talks have to be completed by August at the latest, so that the plans can be presented on Princes’ Day, the third Tuesday in September.
Samsom wants to retain the ‘one-off crisis levy’ for at least one more year. The top incomes should count on the 16 percent crisis levy on salaries of above 150,000 euros will be maintained next year, now that pay at the top of businesses is rising much faster than average salaries.”
The opposition parties in the Lower House reacted negatively to the PvdA leader’s call on Tuesday. Christian democratic (CDA) leader Sybrand Buma said Samsom "is again throwing money around to solve the crisis. This can only lead to higher taxes and social premiums.”
Centre-left D66 leader Alexander Pechtold is also critical. "Why do I not hear Samsom talking about the postponement of reforms and the cutbacks on education? Has he already accepted these things? Reforms and education increase the strength of our economy. That the VVD and PvdA cannot continue to deny.”
"Samsom has completely lost the way,” declared Geert Wilders of the Party for Freedom (PVV). "He is also responsible for billions in tax increases and cuts and his words are therefore now completely unbelievable.”
Socialist Party (SP) leader Emile Roemer spoke of “an abundantly obvious panic reaction” which is full of contradictions. “Do cut 6 billion extra, allow unemployment to rise sharply and heavily increase taxes, and then urge people to spend more? Then you are no longer of this world.”