Formation parties want to borrow billions for solving major problems

The VVD, D66, and CDA want to borrow tens of billions of euros to solve major problems like the climate crisis, the nitrogen crisis, and the overdue maintenance on roads and other infrastructure, NOS reports based on documents from the formation process.

It is unclear how much money is involved or on which problems the funds will be used. The loan will be a once-off thing and not structural, yearly loans. Borrowing money is currently very attractive due to the extremely low interest rates.

These plans come from formation documents discussed last week before the decision to negotiate a continuation of the current coalition of VVD, CDA, D66, and ChristenUnie, according to the broadcaster.

The VVD, D66, and CDA want more money to tackle the pressing crises, but without affecting the EMU directly. The EMU refers to the European rules on expenditure.

"After establishing funds for incidentals, we want to return to normal fiscal rules," the three parties wrote in the documents. According to them, this means that if the new government wants to invest in something, it must cut back the same amount on something else.

The parties also want to limit tax increases on citizens and businesses in the next Cabinet's term. The tax burden may not increase beyond this limit, no matter what happens. "Interim policy changes must remain within these frameworks," they wrote. For citizens the starting point must be "tax increases must be limited and, where possible, turned into tax relief."