Clarity on purchasing power tomorrow, perhaps after only months of compensation –

Clarity on purchasing power tomorrow, perhaps after only months of compensation –

Do the Dutch make up for the absurdly high prices? The cabinet continues to put the hot potato forward and has been citing purchasing power figures from the Central Planning Bureau (CPB) for months. That forecast is due on Wednesday, but it could take months to stabilize runaway inflation, if any.

In the coalition agreement, the coalition parties VVD, D66, CDA and ChristenUnie agreed on a “balanced and average picture of positive purchasing power” for the coming ministerial term.

During the discussion about the government statement in January, Sophie Hermans, party leader of the VVD, went even further and promised everyone “this plus”.

When prices started to rise last summer, the government promised to look into repairing the purchasing power plates.

But the war in Ukraine turned all predictions upside down. Energy prices, in particular, are rising. The billions the company has spent this year ease some of the pain, but don’t completely take it away.

For the total purchasing power graphs, the government has always referred to the CPB figures, which will be presented on Wednesday morning. These figures form the basis for determining whether and, if so, how much households are compensated.

Rutte ‘does not give absolute guarantees’ on recovery of purchasing power

The current budget cannot be adjusted for the first time before the Spring Memorandum, which is likely to be published in April or May.

Unlike Hermans, Prime Minister Mark Rutte made no mention of purchasing power in his government statement. “I will not give any definitive guarantees,” he said in January.

Rutte said at the time that he had no idea of ​​inflation, as no one in the House of Representatives had. Not to mention the Russian invasion of Ukraine.

Ultimately, the entire House of Representatives supported the CDA movement, which urged the cabinet to come up with recommendations on ‘how to increase the purchasing power of older people in particular who are in danger of shrinking’.

Company softens expectations

That is why it will become clear tomorrow what price will be added to it. The company has issued dozens of profit warnings in recent weeks.

On February 28, four days after the Russian invasion of Ukraine, Rutte spoke about the “big blow that threatens purchasing power”.

Minister Sigrid Kaag (Finance), who ultimately has to decide on compensation, is also tempering expectations. He recently said at a press conference that the company “can mean very little anyway” for this year’s purchasing power figures.

Kaag said a few weeks ago: “When we talk about purchasing power, we usually talk about the year 2023. “There are a few buttons that the app can replace traditionally,” he said.

GroenLinks urgently seeks action against high energy bills

Meanwhile, Parliament is nervous about the slowness of decision-making on compensation issues. GroenLinks leader Jesse Klaver has already calculated that if the cabinet only focuses on the spring memorandum, the proposals will only be discussed in the House of Representatives in July.

That is why he wants the government to take immediate action to maximize energy prices. “We must do everything we can to stop Putin,” Klaver said in a statement about his proposal. But it does cost something,” he says.

He describes Kaag’s unwillingness to pledge the purchasing power of the repairs as ‘unsustainable’. “People who are already worried about their bills at the end of the month should not become victims of this war,” says Klaver. “The company needs to take action,” he said.

Coalition parties VVD and ChristenUnie also hinted that they did not want to wait too long with compensation.

That does not mean that there will be more clarity tomorrow, when the CPB announces its long-awaited purchasing power figures. Kaag is then in Paris for a working visit to the French government. His spokesperson does not yet want to say whether he will respond directly to the figures and also referred to the spring memorandum.

Source: NU