The Dutch coalition government survived a no-confidence vote on April 5. But its problems are far from over – with pressure from the farmers' movement causing tensions inside the coalition. The pro-farmers' BBB party made a breakthrough in the provincial elections in March, rattling the political establishment. Farmers are calling for a review of the government's policy on reducing nitrogen emissions, saying the cuts could ruin their livelihoods. Talking Europe speaks to the Dutch Deputy Prime Minister and Finance Minister Sigrid Kaag about the latest turmoil, but also about the upcoming state visit to the Netherlands by French President Emmanuel Macron.
The Dutch agricultural industry is an important one, and the Netherlands is Europe's biggest meat exporter. On the farmers' movement and nitrogen emissions, Kaag says: "There’s a real issue in our country – the nitrogen crisis. If we don't solve it appropriately, in a way that's aligned with rules and legislation, then the economy will become stuck; farmers will not have the prospect of a sustainable future, and they're entitled to a sustainable way of farming and a sustainable way of life. Nature will be impacted, and it won't be restored to where it ought to be."
Kaag seems very sceptical about the possibility of re-opening the coalition agreement when it comes to the nitrogen emissions policy – something that has been mooted in the light of the no-confidence vote in parliament.
"The coalition's nitrogen emissions policy didn't come out of thin air," she says. "And it wasn"t driven out of ideology or political preference. It was based on science and on a sense of urgency, to tackle, basically, what has been an outcome of years of either denial or looking away. We owe it to all citizens, including to the farmers, to tackle this. As the leader of my party, D66, I say, we want to do the job right, or there's no point in doing it at all. Now, politics is also the art of the compromise, but we also need to be very mindful of the art of doing what's right, as well as the quality of the compromise."
On new technologies that might allow the EU to become more competitive, Kaag says: "We need to leapfrog, we need to stay ahead of the game. I see value in the right kind of investments. We have to target the type of investments that will create business opportunities." "Many startups can be frontrunners in the future," she adds.
But should there be an EU sovereignty fund to help with such investment?
"You know that we are quite reticent on the launch of new funds," Kaag replies. "We sometimes find that, when we analyse a problem, the immediate, knee-jerk reaction is to establish a fund. Our approach is to leverage the funds that we already have. Re-purpose or use existing funds. If there is a shortfall, we can debate it. But, in the Netherlands, we have a saying: 'money doesn't grow on trees'. In times of economic uncertainty, we have to be mindful of how we spend money. I have not yet seen a proposal from the European Commission that would put forward a sovereign fund. But we have to be clear with taxpayers: if we have funds, how do we spend them? And what are the expected results?"
Asked about President Macron’s upcoming visit, and whether Paris and The Hague are at odds on nuclear energy, Kaag responds: "In a fundamental way, no. In the current (coalition) government agreement, we have decided for the first time in a long time to free up investments into the establishment and development of nuclear reactors, and that is quite a novel decision, if you look at the past political trajectory in the Netherlands. France, of course, has huge nuclear assets, so I think the conversation going forward should look at the energy mix that we need."
Programme produced by Perrine Desplats, Isabelle Romero and Sophie Samaille
