Today, Tuesday, Sept. 21, is Budget Day, the official opening of the parliamentary year and the presentation of the 2022 budget. This year is unlike any other. A new cabinet has been waiting since the March elections, which means that the current caretaker cabinet can only make major decisions with the support of the House of Representatives. Climate change is not waiting for a new cabinet, and the Netherlands will also have to implement European policies. This is the reason that the group chairmen of VVD, D66 and CDA will consult with their colleagues from the so-called broad middle - Green Left, Labour Party and Christian Union - on adjustments to the proposed budget.
During the General Political Consultations (APB) and the General Financial Consultations (AFB), they will come up with proposals to adjust the budget and shift budget between ministries. In the following weeks, the individual ministerial budgets will follow, where budget can be shifted within the ministry. In jargon, this is called searching for cover; where can you get money from when an idea needs extra money.
European obligation
That the budget negotiations cannot wait for a new cabinet is because the budget will be reviewed by the meeting of the Eurogroup (the 19 countries whose currency is the euro). On Dec. 6, the Eurogroup will meet and prepare a draft Recommendation 2022 on policy priorities for 2022. This recommendation will then be approved by the European Union's Economic and Financial Affairs Council (ECOFIN) on Dec. 7 and, after ratification by the European Council (of heads of state and government of EU member states), formally adopted.
What is special this year is that there is a chance of a new government, which of course wants to put as many of its plans as possible in the next year's budget. Should this succeed in time, the coalition parties will introduce a major amendment that could turn the entire budget as it was known up to that point upside down. If this does not succeed, a new government will use supplementary budgets to try to implement as many new policies as possible in 2022.
Policy rich despite outgoing
At the same time, we learn in the corridors that there are policy-rich budgets in the areas of climate, energy and agriculture. Motivated by the Urgenda ruling, a total of 11 billion euros will go to a package of measures: additional SDE++ budget, the CCS ceiling will be raised and there will be an energy saving obligation for ETS companies. The interpretations within My Publieke Zaken list all the measures.
Budget choices are made with a focus on Urgenda and reducing nitrogen emissions. The budget also anticipates policy on the Farm to fork strategy and the European Union's Fit for 55 package.
Chess on two boards
It becomes, in short, a complicated game of chess on two boards. On the first board plays the process of the ongoing budget process from APB and AFB to each individual ministerial budget. Also at play on the board of the longer term through the formation process.
Want to know more? Get in touch with us!
René Leegte
rene@publiekezaken.eu
06-50419972
