Netherlands: impact of the Mark Rutte administration’s fall

From employers’ point of view, the Mark Rutte administration is falling at the worst possible time.  The country is in the middle of recession, with unemployment growing (5.9 percent in March) and a half-mast buying power (-1 percent in 2012 because of a severely decreasing State budget), so taking action is an emergency.  On April 17, Bernard Wientjes, leader of the Dutch employers’ organization, called on the government to take the bull by the horns and save €9 billion with the 2013 budget in addition to the €18 billion in cuts already implemented with the 2012 budget.  While some sectors no longer have the State’s support (subsidies drastically cut in culture and development assistance), unions were powerless.  Police announced a strike movement but the pay freeze for civil servants, in force since 2003, is still on.  Likewise for all employees – a measure unions are rejecting, calling for a 2-2.5 percent increase in 2012.  The Netherlands are going to have to prepare early legislative elections – the date hasn’t been set yet.  Agnès Jongerius, leader of the Federation of Netherlands Unions (FNV), thinks that it is a good thing that “voters have the possibility of having a say on austerity measures.”  In the midst of a restructuring, the country’s largest confederation is going to come back to life in June under a new name, De Nieuwe Vakbeweging (DNV, New Federation).  It won’t be able to lobby political parties to take account of its views.  It doesn’t matter that Geert Wilders is defending social benefits, like the trade unions, he is still down in the polls.  “He showed he doesn’t have what it takes to take on responsibility during a crisis” the Trouw centrist daily wrote.  The FNV’s historical ally, the labor party (PVDA) could be the winner with this new situation, and take from Wilders’ People’s Party (PVV) the position as the third largest political group in the country.  The next elected coalition will most likely be ‘purple’ – with the labor, Christian democrats and liberals (who are still leading in the polls) forming an alliance.