Finance Minister rejects higher national debt for coalition demands

Finance Minister Eelco Heinen (VVD) has ruled out increasing the national debt to meet coalition demands, emphasizing the need for financial stability in uncertain times. "More debt is not the solution. That just passes the bill forward and leaves us worse off in the long run," he said Sunday on the television program Buitenhof.

Negotiations over the spring budget update are beginning, with coalition parties PVV, VVD, NSC, and BBB already outlining their priorities. Meeting these demands will require billions, while substantial funds are also needed for nitrogen reduction policies, climate measures, defense, and aid to Ukraine.

Although the budget deficit is rising less sharply than expected, according to the latest figures from the Netherlands Bureau for Economic Policy Analysis (CPB), Heinen remains committed to strict fiscal discipline. He stated that he sees "no indication" that coalition parties are willing to increase national debt to finance their plans. "That is the position I take into negotiations," he said.

Heinen stressed the importance of maintaining a low debt level, especially during global instability. He pointed to the 2008 financial crisis and the COVID-19 pandemic, noting that the Netherlands' relatively low debt at the time allowed the government to respond effectively. "We are again in a situation where I say: we should be glad we have such deep pockets."

The minister acknowledged the need for increased defense spending but declined to specify an amount. "First, we must determine what is necessary; only then can we discuss funding," he said. He emphasized the urgency for European nations to strengthen their military capabilities as the United States shifts its focus toward Asia. According to Heinen, a collective European effort is essential.

A potential source of additional funds for Ukraine is the use of frozen Russian assets. Heinen noted that EU member states are gradually moving toward this option. "All options are on the table," he said but warned of the legal and financial consequences. He pointed out that the interest on these assets is already being used to support Ukraine but insisted that further steps must be taken "very carefully."

"As a rule-of-law state, you cannot simply seize someone else's money," Heinen stated. He stressed that proper handling of the issue is critical to maintaining confidence in the stability of the euro. "Foreign investors must know their money is safe in the EU."