Socialists in the Netherlands accuse government of failing to combat rising poverty

Proposals in the 2024 budget presented by the caretaker government on Prince’s Day have been deemed as inadequate to mitigate the rise in poverty amid a severe cost of living and housing crisis

September 20, 2023 by Peoples Dispatch
Dutch protests rising poverty
Prince’s Day protest by the Socialist Party in The Hague. (Photo: via SP)

The Socialist Party (SP) in the Netherlands has slammed the caretaker government led by Mark Rutte for its failure to combat rising poverty. On ‘Prince’s Day’ on Tuesday, September 19, when King Willem-Alexander addressed the parliament, the government introduced the annual budget for 2024. While the government earmarked an additional €2 billion (USD 2.14 billion) to tackle poverty and announced financing of an anti-poverty project to be partially funded by taxing the wealthiest, working class sections termed these assurances as inadequate and half-hearted. SP leader Lilian Marijnissen criticized the government for its unkept promises and short-term fixes. 

Over the past two years, working-class households and other low-income families in the Netherlands have been struggling due a severe cost of living crisis marked by high fuel and food prices, triggered by the energy crisis brought on by the war in Ukraine and profiteering by energy giants. Dutch cities have also been facing a deep housing crisis with a shortage of housing spaces, high rents, and unaffordable property prices.

According to reports, the 2024 budget will also see a rise of 11% in the allocation to the royal family as it will receive a total of €55 million (USD 58.84 million) next year. Defense spending has also been increased to €21.4 billion (USD 22.9 billion), or 1.95% of the GDP, in tandem with the NATO agreement asking member countries to spend 2% of their GDP on defense. The government will also continue to support Ukraine with equipment and training in 2024.

On a call given by the SP, nearly 2,000 people rallied in The Hague on Sunday ahead of Prince’s Day. They asked for support in the upcoming elections and to push the political narrative in a pro-people and working class direction. The SP has called for an increase in the minimum hourly wage to €16 (USD 17.12 USD) and to abolish the VAT on food and transportation, along with capping of the energy bill and nationalizing the energy sector. On Monday, the Federation of Dutch Trade Unions (FNV) called for a 5-14% wage increase, automatic price compensation, and a minimum hourly wage of €16.

On July 7, the Rutte-led center-right government collapsed over differences between the coalition partners regarding the refugee policy. Snap elections to the 150-seat House of Representatives are now scheduled to take place on November 22.