14 February 2013

Henk Kamp: The State of the Economy

When the crisis erupted in 2008, the first shocks were absorbed by the government, which allowed both the budget deficit and the public debts to rise sharply. Great progress is being made in Europe. The debt crisis is not over yet, but EU interventions have settled the financial markets. And that is vital for the Netherlands, because three-quarters of our exports still go to other European countries. Another positive development is the trend in Dutch exports, which have shored up the economy in recent years. And the Netherlands Bureau for Economic Policy Analysis (CPB) expects exports to continue growing in 2013. This shows that our businesses are still highly competitive. There are also tentative signs of recovery in the Netherlands itself. Major companies like ASML, Ahold and Unilever have reported promising annual figures. CBS found that consumer confidence had rallied slightly in January. Marketing consultants GfK report that the upward trend has continued into February and consumers are spending more again. And the figures for the temping sector, often seen as heralding broader economic developments, are showing a cautious upturn.

The government is committed to a policy that will deliver more jobs, innovation and prosperity in the long run. Raising the state pension age is another essential modernisation. Bringing the pension age into line with increasing life expectancy will not only make public finances more sustainable but also increase labour participation. Demographic ageing makes this a necessity. This will ensure that the workforce will expand, and that companies can grow..

The government is also focusing on services provided by semi-public sectors like education and healthcare, housing associations and public transport. Such services help the Netherlands to remain an attractive place to live, work and invest. To enhance those public services, we need to strengthen supervision and ensure a level playing field. To highlight the importance of this task, the government has created a Public Interest Reform Committee.

Finally, the government is also encouraging innovation – the driving force of long-term economic growth. Instead of handing out subsidies, we are strengthening cooperation among researchers, businesses and educational institutions. This makes a practical person like myself very enthusiastic, because it prevents existing knowledge going to waste and stimulates the development of new knowledge.

The single patent to be introduced throughout the European Union in 2014 will also boost innovation. Innovative companies that want to apply for a patent in Europe will no longer have to do so in every member state. This will reduce red tape and cut costs. This will benefit the Netherlands more than any other European country.

Government plans will result in a more efficient economy and healthy public finances. Overall, they will generate 50,000 jobs and cut public spending by no less than €15 billion, creating a financial buffer for the future. And ensuring that the Netherlands will not just consolidate but also improve its economic position.

To achieve economic recovery, everyone must shoulder their responsibility. I can see signs of this in many areas. For instance, the Social and Economic Council (SER) has shown new élan with its initiative to conclude a national energy agreement. An agreement between parties such as nature conservation organisations, the building sector, the energy sector and industry will facilitate the transition to a more sustainable economy.

To further improve the business climate, I am also committed to reducing the regulatory burden. Since the end of 2010 the burden on businesses has fallen by nearly €1 billion. Thanks to measures such as simplifying the rules for setting up a private limited company and introducing a pan-European e-invoicing standard. The government aims to reduce the burden by a total of €2.5 billion. For instance, by introducing the ‘enterprise dossier’. Once businesses have entered their details in their online dossier, this information can be used in any subsequent dealings with the authorities, such as applying for a licence, filing a tax return or undergoing an inspection. The aim is for a critical mass of 80,000 businesses to have an ‘enterprise dossier’ by the end of 2016, and ultimately to reach all businesses that have a lot of contact with the authorities. This should cut their compliance costs by at least 15 per cent.

Full speech

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