Collapse of Austerity Talks in Netherlands Fuels Crisis

[alp227]

Source: NY Times

More uncertainty loomed for the euro zone on Saturday after the prime minister of the Netherlands, Mark Rutte, said he expected new elections to take place following the collapse of talks on new austerity measures.

The announcement is unwelcome news for Europe’s single currency zone, particularly because the Netherlands is one of just four countries that use the euro to maintain a coveted AAA credit rating. Over the weekend, officials from the International Monetary Fund and the World Bank met in Washington and sought ways to bolster contingency plans if the debt crisis in Europe worsened.

The Dutch government has taken a tough line on bailouts for Greece and given strong support to Germany’s efforts to force through a new pact on fiscal responsibility in the euro zone.

But the country’s domestic politics have been plunged into crisis because targets for the budget deficit, laid down by the European Union, were missed.

Read more: http://www.nytimes.com/2012/04/22/world/europe/budget-talks-collapse-in-the-netherlands-elections-expected.html

[DJ13]

1. "... that use the euro to maintain a coveted AAA credit rating"

In a rational world, instituting austerity measures should automatically lower a country's credit rating.

The supposed "need" for austerity would be a signifier that the country isnt in good financial shape in the first place.

[tama]

2. In a rational world

there would be no artificial austerity produced by money, to begin with.

[KansDem]

3. Is it just me or does the move to "austerity" mean "sacrifice by the lower classes?"

How much is the "ruling class" sacrificing for "austerity?"

[Vincardog]

5. 'How much is the "ruling class" sacrificing for "austerity?"' 0 they are benefitting from it.

[truedelphi]

7. In the USA, the top one percent has never seen such increased gains.

Last edited Sun Apr 22, 2012, 12:04 AM - Edit history (2)

Most gains were taken from the struggling and soon to be extinct middle classed.

Naomi Klein and her Shock Doctrine theories have proven to be correct. And the style of "culture" that results is either control of the masses by a Mafia styled elite (as is the case now in Russia) a junta as we saw in South American nations like Chile, and Argentina, or else a totally fascist style of governing.

The thing is, most Americans refuse to see the writing on the wall. Until the leaders of the two parties tell them that it is so, and until the Talking Heads say it is. Way, way back in the nineteen sixties, Carl Jung stated that the American culture was the most conformist on earth.

And that pretty much sums it up. Name one other nation that says it is a democracy, yet only has two parties? Or that doesn't provide health insurance for all, as a given right.

[FreakinDJ]

9. A trully well stated post

[David__77]

4. The collapse of the Euro and the EU would be a good thing for Europeans.

The EU is an anti-democratic institution. It should go the way of COMECON.

[pampango]

13. Ironically the French National Front would agree with you, while their Socialist Party

would disagree. That is true in most European countries. The far right wants to get rid of the EU and the left wants to keep it.

Funny how the European left and right view the EU differently than their American counterparts do.

[David__77]

15. The Left Front disagrees with the Socialists.

The European Social Democracy has lost its connection with the historical labor movement. There is a reason the working class in France would vote for the National Front over the Socialists - because the latter has indeed renounced socialism. The Left Front represents what the Socialists once claimed to be.

[pampango]

17. I haven't seen any polls that show the "working class in France would vote for the National Front

over the Socialists - because the latter has indeed renounced socialism. It looks to me like the National Front could finish fourth in the first round of voting, so I don't think too many of any class are voting for them. We will see whom the working class votes for. Their election is today.

Every far-right party in Europe wants to see the EU die. Does that mean that they are all in the vanguard of progressive thought in Europe? And that the European Social Democracy is out of touch since they want to preserve the EU?

Pay, benefits, vacation time, maternity leave, sick time, the power and scope of unions are all much better for workers in Europe than in the US. I doubt anyone will credit the National Front or any other conservative political party for these achievements, any more than we would credit the tea party for saying "Keep the government out of my Medicare". If European Social Democracy is out of touch with the European labor movement, we could use some of that "out-of-touch"ness here in the US.

[David__77]

24. Of course the polls said this, as have the results

Labor vote: Marine Le Pen in the lead

http://www.journaldunet.com/magazine/vote-ouvrier-marine-le-pen-0412.shtml

The worker vote was won by Le Pen. In her own twisted way, she was the most "radical" and even "anti-capitalist" candidate. Of course, it is the foul, fascist, "national-conservative" radicalism best exemplified by national traitor Petain; nonetheless, it appeals to workers seeking an alternative to neoliberalism.

The Socialists represent much of the same, in that it won't fundamentally challenge the neoliberal, anti-sovereignty project. And even the Leftist Front, for all it promise, made a fatal error by immediately falling in with the Socialists without so much as issuing a single demand in exchange for their support.

I will be glad when Sarkozy, the evil blowhard, is defeated. But the left better get its act together, or the fascist will occupy even more of the traditional ground of working class, socialist politics.

[pampango]

28. Interesting that you consider the far-right candidate the most "anti-capitalist" candidate

"in her own twisted way".

You apparently consider the EU to be a "neoliberal, anti-sovereignty project". I'm sure Ms. Le Pen agrees with you (as do many other far-right politicians on the continent), but not liberals in France. The anti-EU (and anti-Schengen) movement is a right-wing phenomenon stoked by nationalists who play on the fears that many people have of "others".

Are you saying that in order to defeat the "foul, fascist, "national-conservative" radicalism" represented by the National Front, the French left should become more like them by adopting some of their policies? Kind of become a "National Front-lite"? My guess is that this notion has occurred to French liberals but they have apparently rejected it. I conclude from this that liberals there are too committed to an open society and the "neoliberal, anti-sovereignty project" (code for the EU, I assume) to sacrifice them on the altar of "adopting whatever policies will get us elected" politics.

"Marine Le Pen has a clear lead among workers, with 30% of their votes went to him. Follow Francois Hollande to 27%, 18% to Nicolas Sarkozy, Jean-Luc Melenchon to 12% and 8% Francois Bayrou."

I congratulate Ms. Le Pen for her success in scaring 30% of workers (thus "winning" the worker vote by 3%) with her anti-immigrant (particularly Muslims), anti-EU scare tactics. ("Our problems are caused by "others". If we just get rid of them, we will be fine.&quot

Our republicans have had similar success winning workers' votes with fear-based, "us vs them" campaigning. I wouldn't be surprised if tea party candidates didn't get more than 30% of the worker vote in 2010. That doesn't mean that Democrats should adopt more "tea party-lite" policies in order to keep them out of power.

[David__77]

29. Europeans reject the neoliberal model.

Of course in Europe, as elsewhere, "liberal" stands for pro-finance capital, "free markets," and replacement of national power with supranational power. The Socialists are divided between liberals (in the classical sense, not the progressive/US sense), and actual social democrats that ultimately want socialist reforms to the socio-economic system, increased worker management, etc.

It's not the left that needs to "copy" right-wing populism; quite the contrary, it is the right-wing populists that adopt the trappings of the traditional left. It's that tradition to which the left should return, in my opinion. The tradition of socialism, progress, class, and cultural development. If a left formation were to do so, and reject the mess of third way, the lingering stench of the 60s New Left and postmodernism, the workers will support it and the National Front would be doomed.

[pampango]

30. I would agree that the EU has been a liberal project and that it involves

free markets between European countries.

You seem to be saying that the right-wing parties like the National Front are adopting traditional left policies - "socialism, progress, class, and cultural development". I don't see the National Front pursuing any of those policies. They are pursuing anti-immigrant, anti-Muslim, anti-EU nationalistic politics. If those sound "liberal" to you, you are welcome to your definition, but I don't think the left in Europe is going to be joining you any time soon.

[David__77]

31. No...

"You seem to be saying that the right-wing parties like the National Front are adopting traditional left policies..."

No, not at all. Just the trappings of the politics. Not the policies at all. It is through such means that, for instance, in this country, right-wing populists think that they are quite radical and revolutionary, when they really serve extremely entrenched oligarchy.

"They are pursuing anti-immigrant, anti-Muslim, anti-EU nationalistic politics."

Yes, absolutely, although the racism is hardly intrinsically tied up with "anti-EU nationalism." There can be an entirely progressive role for national patriotism in Europe. The Greek people demanding the people's right to life come before foreign creditors are entirely patriotic, nationalist, and progressive.

No progressive can do anything but wholly condemn the politics of fascists like the National Front. Not one inch of space should be allowed to them.

[LetTimmySmoke]

6. The Dutch are loyal members of the Reich.

[dipsydoodle]

8. The Dutch would not appreciate that comment.

If you actually knew anyone in Holland I doubt you wouldn't have made that ill considered remark.

[Bigmack]

14. Thanks for your post

I DO know a (very) few Dutch folks, and you are so VERY correct. What a VERY ill considered remark! Ms Bigmack

[glinda]

21. One of my closest friends is Dutch also. She is wonderfully kind.

[muriel_volestrangler]

10. Sad to end up in a position where the racist Freedom Party seems to be making sense

The latest crisis began in February when new figures showed the Dutch economy would continue to perform poorly in 2013 and 2014, and the Netherlands' annual budget would therefore exceed the European deficit limit of 3% of GDP. Unless cuts were made, the deficit for 2013 would be around 4.5 percent.

The coalition parties felt obliged to come up with around 14 billion euros of new spending cuts, in order to bring the balance in order. This followed an earlier round of cuts totalling 18 billion euros. The three party leaders, along with one assistant each, started a difficult and sensitive negotiating process at the Catshuis. They agreed on a complete media blackout and included neither parliament nor cabinet ministers in their negotiations.
...
Of the three parties involved, it was Mr Wilders who found coming up with new austerity measures the most difficult. His populist Freedom Party wants to keep the social safety net in place, while the pro-market VVD and the Christian Democrats aim to cut social programmes further.

In the end, proposed cuts in healthcare and pensions were too much for Mr Wilders. He said he could not in good faith sign off on those cuts.

http://www.rnw.nl/english/article/dutch-government-brink-collapse

Rutte blamed Wilders for the collapse. He said that on Friday a "balanced package" of cuts had been agreed only for Wilders to come back on Saturday after talking to his party colleagues and rejecting the plan.

Wilders said he "would not accept that the elderly in the Netherlands have to pay for nonsensical demands from Brussels."

http://www.dw.de/dw/article/0,,15902706,00.html

The head of the anti-EU Freedom Party, Geert Wilders, said the package of cuts "will damage economic growth and... severely effect the spending power of many people, especially pensioners".

He said Brussels wanted to "take away the economy built up by the elderly", although the Netherlands itself has been one of the strongest proponents of tough fiscal regulations in Europe.

http://www.bbc.co.uk/news/world-europe-17803042

It's possible the 'Freedom Party' is saying that because they'd like to see the Euro and EU fail, of course; but austerity measures are making things worse in Europe. A hard deficit limit from outside is indeed a bad idea.

[DallasNE]

20. Very Informative

Last edited Sun Apr 22, 2012, 01:52 PM - Edit history (1)

Of course the answer is growth and not austerity. I don't know what is wrong with Europe right now but much of their leadership is really stupid when it comes to economic matters. The path they have choosen has plunged Europe back into recession and everything they are doing right now will only make the recession worse. There only hope is upcoming elections and France may have a new Prime Minister by June. That would be the first leg to fall but the question remains on whether the new governments would have the guts to take on the monied interests and do the right thing. Europe is indeed a basket case right now, headed in the wrong direction and unwilling to come to grips with the underlying problems they face. Left out is the role that corruption plays in all of this as well.

[got root]

22. They are following our lead

Though they still have populations who will resist the monied elite, not that it will necessarily succeed but there will be a struggle to maintain their social contract.

[Odin2005]

11. The EU is looking more and more like a tool of Corporatist oppression and control.

back when the Eurocrats were trying to force the failed new EU constitution down Europeans' throats there was a quip going around that the EU is the German Empire without the Kaiser.

[dtom67]

12. wish I was a banker...

Imagine all the money you could make destroying the EU !

[frazzled]

16. This Dutch government is a right-wing nightmare

My husband recently returned from The Netherlands, and reported that all the people he talked to were in despair (mostly administrators in very famous and longstanding arts organizations, some of whom he has known for years). Their budgets have been slashed—not because The Netherlands actually is in any kind of economic crisis—but because this right-wing government wants to cut everything (especially Holland's well known and established arts organizations, which they have branded the playground of "left-wing hobbyists&quot . They are all losing their jobs and/or buildings and staff. They said they will all be driving buses next year.

That is all I have to say about austerity in The Netherlands.

[pampango]

19. The Netherlands will have an election soon as a result of this. Might the right-wing nightmare

end if people wake up and spank the conservatives (particularly the far-right like Geert Wilders' Freedom Party) but good?

The left didn't support and wouldn't vote for this austerity budget which should be a huge point in their favor. Plus if the left wins an outright majority they can banish Geert Wilders back to the wilderness from whence he came. His opposition to an austerity budget being about the only progressive policy that he supports.

[arikara]

25. Our extreme right libertarian government in Canada is doing exactly the same thing.

Harper is all over "austerity" for the people as he is busy donating our assets to foreign corporations. He travels all over the world spouting off about trade this and trade that, but every time he does one of his photo op speeches he announces another cut to something here in Canada... which he's too cowardly to announce in parliament.

[fasttense]

18. Targets for the budget deficit, laid down by the European Union, were missed?

What targets would those be?

50% unemployment rate.

75% poverty rate.

Daily riots and protests.

Hospitals refusing to care for dying patients and mass dumping of patients into the streets.

Excessive tuition rates at all colleges and schools.

A 90% inflation rate on the cost of food and water.

A 75% tax rate on anyone earning less than 1 million a year.

A 2% tax rate on corporations and the uber rich.

Privatization of all land, resources and services.

The ending of all pensions, retirement accounts and social security.

The list goes on and on. Those are some very tough targets to meet.

[got root]

23. It seems as if 911 was some kind of cue to the corporate facists to

Go for broke

[arikara]

26. Sort of like it was planned

... or something.

[DonCoquixote]

27. This fellow is a right wing jerk

But sadly, he has the EU dead to rights here.