Speech by Minister of Finance Eelco Heinen at the presentation of the 2025 Budget Memorandum

Speech | 18-09-2024

Mr President,

This Budget Memorandum is not about us.

It is about all the ordinary people of this country.

People who have a job or have their own business.

People who want to participate in society, but face adversity.

People who deserve a decent retirement.

And young people, to whom we will be passing on this wonderful country of ours.

Because that is what the Netherlands is: a wonderful country.

Whose people live in freedom and prosperity.

And are among the happiest in the world.

The Netherlands is near the top of almost all the rankings.

That’s not a coincidence or a law of nature.

It’s the result of hard work, a frugal attitude, and making the right choices.

But I fully understand

That rankings mean nothing if you can’t find an affordable home.

That purchasing power scenarios don’t help if you’re experiencing hardship as a consequence of illness.

And that numbers offer little reassurance if you’re worried about safety in your neighbourhood.

In a prosperous country,

You shouldn’t have to worry about being able to pay the bills.

Your take-home pay should be enough.

In a decent country, which always has room for people in need,

You shouldn’t have to worry about uncontrolled migration.

You should be confident that we are in control and know what our society can cope with.

There are concerns on this, however. And we have to take them seriously.

But that means we have to make choices. Even if they are difficult.

But before I get to those choices,

We should remind ourselves precisely why we are such a prosperous country. And how we can stay prosperous.

In my view our prosperity depends on three important factors,

Which are increasingly coming under pressure.

First, our international position.

The Netherlands has an open economy, that benefits from trade.

We gain a great deal from the European single market.

So it’s crucial that the Netherlands remains part of it.

And, in fact, that we strengthen it further.

Together, we are also stronger in our dealings with emerging power blocs.

Which often outcompete European companies by giving their domestic industries state aid.

As a result, we are also increasingly hearing calls for European businesses to receive state aid.

Whereas in the long term this can actually damage economic growth.

This brings me to my second point.

At times we seem to be losing some of our faith in the free market economy.

Our faith in loosening the reins so that great things can happen.

The government doesn’t have to subsidise or compensate for everything.

It is freedom that allows people to flourish and that spurs innovation.

And that’s what we need to increase our productivity.

Because that is how our economy grows.

Enabling us to continue to earn the money we need for the things we all consider important: good care, good education and security.

Third, the way we grow is also important.

Because prosperity is about more than simply money.

We need green growth so that the generations that come after us inherit a country in a good state.

And that means we need a government that sets clear goals and provides stability.

Mr President,

The financial choices needed to achieve these aims are set out in this Budget Memorandum.

The government is boosting the purchasing power of working people on middle incomes.

And increasing socioeconomic security.

We are investing in defence and security.

And we are increasing our energy independence through nuclear energy.

We are reversing measures that hold businesses back, and that damage our business climate.

And we are investing in building affordable homes.

But the era of free money
is now well and truly over.

The bills must be paid.

That is why we’ve decided:
To cut down on subsidies.

To make cost savings at government ministries themselves.

To limit spending on development aid.

To make clear choices on health, care and social security.

And to abolish reduced rates of VAT on culture and accommodation.

We realise that these decisions are not pain-free.

But making difficult choices is part of taking responsibility.

And Mr President,

This summer a lot of hard work went into drawing up a government programme that includes new financial choices.

The government has chosen to invest more in defence, more in the police and in border control.

In ensuring it pays more to work.

And in helping people in difficulties.

The government has also listened to concerns that members have across the House.

About school meals, schoolbooks and charitable donations by individuals.

The government has listened to these concerns and is setting out its proposals here.

This summer, also, decisions were made on how we would pay outstanding bills and absorb financial setbacks.

That was essential.

We can’t keep passing on our bills to future generations.

We can’t keep hoping for windfalls, only to spend them again quickly.

This has to stop.

Because although government debt still seems low,

The deficit and debt are projected to rise due to increasing expenditure.

This situation demands a change of course.

A return to fiscal discipline.

And clear agreements on fiscal rules.

Every euro is earned through the hard work of the ordinary people of this country.

Taxpayers expect us to manage their tax money responsibly.

We realise that more will be needed in the coming years.

But we are taking it one step at a time.

This, Mr President, is the first step and we’re taking it now.

I hereby present to you the Budget Memorandum.