The Netherlands: brief overview of the Dutch governmental budget for 2021 - by Rachel Deloughry

The big question for anyone working in the Netherlands is how, when and to what extent the economic downturn due to the coronavirus will affect public finances in the long term. According to CBP, the Dutch economy will grow by 3,5 percent next year. Thanks, in part, to the support package for companies, unemployment is at the rate of 5,9 percent as opposed to the previously feared rate of 6,5 percent.

Here are the main points regarding the Dutch economy:

• The economy will contract by 5 percent in 2020 but will grow by 3,5 percent in 2021 provided there is no second lockdown
• National debt will reach 60 percent of GDP
• Unemployment will be at 5,9 percent
• Higher spending on unemployment benefits will reach an overspend of 230 million euros

 Read more at: 
A brief overview of the Dutch governmental budget for 2021

The Netherlans: Dutch economy expected to grow again next year, Covid-19 effects to linger

The Dutch economy will  shrink by 5.1 percent this year, but recovery will start at the end of the year and in 2021 the economy will grow b3.2 percent, according to central planning office CPB's draft-macroeconomic foresight studies. The effects of the Covid-19 crisis will linger, however, with unemployment rising to 7 percent next year.

The CPB expects all parts of the economy to recover somewhat nextyear. Household consumption will decrease by 5.9 percent this year, and increase by 4.1 percent next year. Investments will go from -7.5 percent his year, to plus 4.4 percent next year. Exports will decrease by 5.2 percent this year, but increase by 4.7 percent next year, and imports will go from -3.7 percent this year to plus 5.4 percent in 2021. Government consumption is the only factor that won't see a decrease this year. It is expected to increase by 2.9 percent this year and by 2.0
percent next year.

CPB director Pieter Hasekamp told NOS that the coronavirus blow to the Dutch economy is "unprecedentedly hard" and "largely yet to befelt". "The corona crisis also has major consequences or things that affect the quality of life: we miss celebrating a wedding oranniversary, the theater and concert stages are empty, and there are serious concerns about loneliness in nursing homes."

Read more at: 
Dutch economy expected to grow again next year, Covid-19 effects to linger | NL Times

The Netherlands: Dutch debtors to get 6 month payment break - by Janene Pieters

The Netherlands plans to give people who are deeply in debt a six month break in which they don’t have to make payments, won’t get reminders for payments and won’t get a visit from a bailiff, State Secretary Jetta Klijnsma of Social Affairs and Minister Ard van der Steur of Security and Justice announced on Tuesday, NU reports.

With this break the government wants to give debtors the opportunity to catch their breath, create some order and make a plan to pay off their debt. During the six month period, income above the minimum standard will still be put aside for eventual debt repayment.

The government hopes to implement the measure by January 1st next year. The proposal was drawn up in consultation with debt relief association NVVK, bailiffs, the association of Dutch municipalities VNG and the four major cities.

The Tweede Kamer, the lower house of Dutch parliament, long insisted that a plan be made to give people in debt a breather. The ChristenUnie and the CDA eventually gave up on waiting for the State Secretary and submitted their own legislative proposal. But during a Kamer debate last month, Klijnsma promised to set up a proposal as soon as possible.

Read more: Dutch debtors to get 6 month payment break - NL Times

The Netherlands Economy: Vice crime pumps over €2.5 billion into Netherlands economy - by Janene Pieters

Criminal activities involving drugs, illegal prostitution, illegal gambling and similar crimes contribute about 2.7 billion euros to the Netherlands’ economy a year. That means that criminal activities account for about 0.4 percent of the Dutch economy, according to an estimate by Statistics Netherlands at the request of broadcaster RTL.

The estimated value of the criminal economy was 2.6 billion in 2010, which means that the growth does not seem to be very strong. Though Statistic Netherlands emphasizes that it should be noted that it is very difficult to make a reliable estimate.

According to Statistics Netherlands’ estimates, the added value of drugs and illegal prostitution increased somewhat, while money earned by illegal downloads providers decreased. Previous calculations showed that drug production and -trade accounts for 55 percent of the criminal economy, followed by prostitution with 21 percent. Illegal downloads and illegal gambling accounts for about 9 percent.

Read more: Vice crime pumps over €2.5 billion into Netherlands economy - NL Times