Dutch Prime Minister Mark Rutte instructed CNBC that there’s a “limit to what a government can do” to assist folks amid surging inflation. Pictured right here, on February 23 2022, are containers being transported within the port of Rotterdam, within the Netherlands.
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Dutch Prime Minister Mark Rutte on Wednesday stated there’s a “limit to what a government can do” to assist folks amid surging inflation.
Speaking on the World Economic Forum in Davos, Switzerland, Rutte instructed CNBC’s Steve Sedgewick that the Dutch authorities would assist folks on decrease and lower-middle class incomes with their rising power payments.
However, he added that “you cannot help everyone so … we in the West will be a bit poorer because of the high inflation, the high energy costs.”
Inflation hit 9.6% within the Netherlands in April, in accordance with the Dutch statistics physique CBS. This was barely decrease than the 9.7% inflation recorded in March, although it remained traditionally excessive.
The Dutch authorities in March introduced assist measures to assist with the burden of rising costs. This included elevating its one-off power allowance to 800 euros ($852), for folks with incomes across the nation’s social help profit degree.
Rutte acknowledged that rising costs would current “societal pressures,” which he stated may very well be seen enjoying out in elections throughout Europe.
But he added that “people generally understand that there is a limit to what a government can do, as long as they feel that it is done in an honest way that you’ve supported people who need it most.”
Rutte stated that one of many priorities for his coalition authorities, which was put in in January and took practically 10 months to kind, was social mobility. He stated the federal government needed to cope with the nation’s “meritocracy trap” and that different components, together with training, may assist folks to change into a part of what he known as the “Dutch dream.”
With regards to the European Central Bank’s strategy to tackling inflation within the eurozone, Rutte stated there are “ramifications coming out of the energy crisis and out of the Ukraine crisis which are unavoidably also impacting on the macroeconomic figures that I cannot blame the central bankers for this.”