Dutch populist politician Geert Wilders has requested a nationwide ballot on changing from the euro and reintroducing the guilder. The idea is not very likely to achieve success in the near term; it marks a serious change in the discourse over the single currency, in one of the “core” eurozone states – one of the few, together with Germany, that keeps a top-quality credit rating. “With the guilder, Holland would be master of its own economics again,” Mr Wilders announced at a meeting in The Hague on Monday. His call came hours after he had a meeting with the countries P. M. to talk about new spending cuts required by the European budget rules that, ironically, Holland itself asked in return for collaborating in a new rescue package for Greece. Mr Wilders heads the Liberty Party, the nations’ third-largest, and is an essential partner for P. M. Mark Rutte’s minority government. Mr Rutte depends on outside help from Liberty to realize a majority in parliament. Mr Wilders is typically renowned for his anti-immigrant stances, but he is also an established septic of European Union.
He has opposed any help for wrestling states in the sovereign debt crisis, exclaiming the Greeks should return to the drachma. He also was an outstanding figure in Hollands’ refusal of the European constitution in 2005. He recognized on Monday it might cost financially to leave the single currency and worked out the new guilder might rise by ten percent against the Euro dollar in the near term, harming exports. Current research does not address the probable costs if a Dutch exit leads to a new acute finance crisis in Europe. A majority of Dutch citizens say they’d like to remain in the single currency, though most regret joining it.
Eagerness has declined as the country’s economy has weakened recently. The government’s stats agency revealed last week the country is in recession. Earlier Monday, Mr Wilders had a meeting with Mr Rutte at the beginning of talks to scale back the nations’ debt. An executive projection last week put the deficiency at 4.5 % of GDP this year, larger than the 3 % authorized under European Fiscal Pact rules, because of the business slowdown. To attain the 3 % target, the country would most likely have to chop spending on retirees medical and pensions.
But Mr Wilders declared his party would only accept new budget cuts in return for cuts on international aid and cultural programs.
European President Rompuy has expounded the cuts needed of Holland are “actually not so massive” compared with what Greece is undergoing. “I would not over-dramatize the situation,” he announced on Dutch TV. The remarks weren’t well-received, given continuing discontent over prior rounds of spending cuts. A strike by cleaners is now entering its tenth week, while police went on strike in 4 provinces on Monday over a pay freeze in 2012. Elementary school teachers are due to strike countrywide on Tues. over funding cuts.
The Dutch would like to see small budget cuts with a push on growth, which most believe is the best formula, unfortunately the new EU pact will push them into austerity measures, which are not working throughout Europe.