What's wrong with Balkenende?

by koenzel
Mon Nov 21st, 2005 at 12:26:25 PM EST

Oui has posted a diary about the Dutch PM Jan Peter Balkenende. He's pretty fond of him, it seems (and he's not alone- Balkenende does have some support left). Why is Balkenende the wrong leader for the Netherlands? What has he done wrong? And why shouldn't he be re-elected?


While it sure wasn't a good economic start-position for Balkenende-I in 2002, let's not forget that the Purple coalition started among an even worse economic constellation in 1994. The big mistake/choice Balkenende made was taking money from the poor (that is, reduce of freeze all kinds of benefits). This made the recession worse, for poor people spend almost all they earn/get (they have a very small saving quote). They also cut subsidised jobs in schools, like janitors and teacher-assistants. Bad for the schools and for the sacked. Cutting deficits is sometimes needed, but where you do it is a choice. This was a very poor choice.

The maximum 3% deficit is actually an invention of Zalm, the Liberal finance minister. He pushed it through at the Euro-negotiations. Nobody adhered to it (France, Germany, Italy and Greece run much deeper deficits year after year) but Zalm demanded it as maximum because ignoring it would mean a body blow to his reputation. But the 3% is not the problem. The problem is the reluctance of the administration to go anywhere near that number (and pay off the debts incurred when the economy returns `to normal') and especially making the wrong cuts.

While the unemployment rate is much lower in the Netherlands than in other countries in the EU, it has risen significantly under Balkenende's watch. Maybe it's on purpose (so that the Liberals can argue that all kind of workers rights should be abolished so the market will create more jobs) or it might be an accident, but the fact is that unemployment has risen in the Netherlands while decreasing or flattened in other European countries.

Balkenende's administration has achieved nothing- good, at least. Even your list of feats consists solely of appointments at international organisations that always look to the Netherlands (because we pay large amounts of money to international organisations). When you ignore the deals employers and unions make, and think you know better, things start going wrong. His economic policies are the worst of both worlds and his liberalization of healthcare insurance is so incredibly nonsensical that just for this policy the coalition should be punished.

Now, the Dutch Army is withdrawing from Iraq. Great. But they shouldn't have been there in the first place! In spite of massive opposition Balkenende followed Bush and joined 'the coalition of the willing'. He was very eager to show his support and destroy the chance for a European front. But most importantly, he followed without thinking. He made the war more credible while doubts over WMD's were shared by a large majority in the Netherlands.

Purple wasn't great- the ideological differences between Labour and the Liberals made effective solution virtually impossible. But they did preside over a huge economic boom, and they didn't destroy it. Also, the Brongersma affair and the social policies (euthanasia, gay marriage) were not controversial. Srebrenica was a huge deal, but not really on the minds of the voters- it just strengthened the feeling that Purple has failed when Fortuyn argued that. This was also the case with ministers who refused to take responsibility and the immigration problems. Purple started immigration reforms that had a significant effect, but now Balkenende's administration has toughened the already tough laws and return refugees to war zones where they are killed (the Congo for example).  

I agree that the Labour has not been a great opposition party. They were barely visible for the first two years of Balkenende II, supposedly because they were convinced they were about to govern with the CDA and so stunned this didn't happen that it took a long time to recover. But Balkenende has not been a good PM. Even if you like his program, he has shown no leadership and is more a liability than an asset for your views. And in the Dutch political system it is pretty much impossible for opposition parties to make laws. As such, their lack of proposals is understandable.

Partisan politics aside, when I and many of my friends look at him, we only see the caricature that comics did of him when he stumbled over every possible stumbling block in the beginning of his administration. All parties say his failing leadership was the reason Balkenende-I ended. His perpetual calls for a return of norms & values- basically a return to the christian ways of the 50s, his criticism of jokes on TV (you shouldn't make fun of the queen) and his strange set of priorities makes him utterly unacceptable to return as PM.

I have to add though that in the last year he seems much more composed, and more of a leader, than before. Maybe he grows in his role- but he's still not acceptable. I think the new Foreign Secretary is the reason for this apparent stability in the coalition (plus the fact that everybody knows that they can't fail a second time if they want to make a credible case to voters).

It's true that there are many swing voters. But it is not unique for the Netherlands, they are perfectly pollable (which party would you most likely vote for?). They will probably swing left. They've seen what Balkenende has tried to do- return `values' while cutting in expenditures and waging unpopular wars. Maybe he'll rebound, you never know- without the constraints of a coalition he might surprise us all. But swing voters are called that for a reason- they don't like any of the parties enough to support them already. Which will make it much more likely that they will vote for an alternative- they have already seen the destructive policies of Balkenende in practice. Of course, this also depends on how Labour defines itself- will it take the center? For more on that, see my recent diary.

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What do you think of Balkenende?
. Good leader 0%
. Not sure 22%
. Harry Potter looks just like him! 33%
. I wouldn't vote for him 44%

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Good counter-point to Oui. Okay, so what would Balkende have to do to stay in power. Or, what does the Middle left have to do to win the next election (you may have said this in your other post...I'm brain-dead tonight..)

"Once in awhile we get shown the light, in the strangest of places, if we look at it right" - Hunter/Garcia
by whataboutbob on Mon Nov 21st, 2005 at 02:08:15 PM EST
Balkenende has to convince the centre to vote for him. And hope that the VVD(Libs) don't implode. But I think the only scenario in which he will survive as PM is that he wins/keeps the same amount of seats while Labour loses seats. It might happen if voters vote Socialist & Green in large numbers instead of Labour. When these parties won't have a majority, and Labour loses (gets smaller than CDA), the CDA-Labour coalition might be the only available option. In this scenario, he might stay PM.
by koenzel (koen@vanschie.net) on Mon Nov 21st, 2005 at 02:21:54 PM EST
[ Parent ]
... is in that 20% (I think it's less) of folks in the Netherlands who approve of Balkenende.

Hmm, well, I guess he likes to be different ;-)

by Plutonium Page (page dot vlinders at gmail dot com) on Tue Nov 22nd, 2005 at 03:28:45 AM EST
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Really didn't expect to find me in mainstream of opinion, did you?

Just too crowded for people to listen, understand one another or be creative in their thinking. I prefer to be the border collie, perhaps even the black or stray sheep. Get to see much more of the beautiful landscape and surroundings.

Sorry if I wander off again ...

  «« click on pic for photo gallery

But Page you were right, the answer lies in WMD's - thanks.

"Treason doth never prosper: what's the reason?
For if it prosper, none dare call it treason."

▼ ▼ ▼ MY DIARY

by Oui on Tue Nov 22nd, 2005 at 09:49:44 AM EST
[ Parent ]
  • how has the housing bubble been discussed in the Netherlands (created the boom in the late 90s, and the nasty recession since, by inflating consumption before and depressing it after)?

  • is the issue that a staggering portion of the population is on disability benefits (and thus not counted as unemployed despite not working) discussed at all?

  • how is part time work seen in that context? (as imposed or as a lifestyle choice)


In the long run, we're all dead. John Maynard Keynes
by Jerome a Paris (etg@eurotrib.com) on Tue Nov 22nd, 2005 at 06:58:57 AM EST
Quick answers:

-in the netherlands we have mortrage reduction on the taxes. This means that you can subtract the amount of money you pay on your mortgage from the taxes. This was devised to help people buy houses, but it's much more profitable for the rich than for the middle class (it works regressive).

The bubble itself isn't that big a deal here- the rise of prices has flattened, but because new supply is isn't coming to the market(not enough space, very tough to get permits to build) and more and more people want one-family homes, prices for middle-class houses will probably stay high (unless something happens with the mortrage reduction, then prices will drop).

I'm actually not sure the recession in the Netherlands had to do with housing- because the Dutch economy is so open and dependant on world trade, we got pulled into recession by other countries. But it might've played a role.

-Governments have been trying to get people out of the benefits and into work since Purple-II. Benefits have been significantly reduced and it's harder to stay into WAO. The big problem is of course that when they stay unemployed/disabled, the state has to pay benefits and senior's pension while they don't contribute. This has been an issue, and they're working on it- though not in the right way IMO(instead of just cutting benefits they should also help the people more to get work/retrain etc.)  

-Actually, in the early 80's, unions traded the 36 hour work week for low demands in wage negotiations. This created a situation where young workers could find new jobs, older workers had to work less and employers had a lower wage bill. This was one of the big reasons why the dutch economy rebounded in the 1990s (the competative price advantague due to lower comparative wages). Woman often work part-time due to their kids- they want to be more at home and kindergartens etc. are so expensive that they nowadays can't afford it. For every labouryear in the netherlands, 1.25 people are employed. So labour participation is pretty high, but the hours worked isn't. People on WAO also work part-time, they are often partially disapproved, so have to work part-time and get for example 40% wao (not many people get 100% anymore).

by koenzel (koen@vanschie.net) on Tue Nov 22nd, 2005 at 08:15:16 AM EST
[ Parent ]
I'm actually not sure the recession in the Netherlands had to do with housing- because the Dutch economy is so open and dependant on world trade, we got pulled into recession by other countries. But it might've played a role.

One thing many people don't realise about the sizable German outside-EU trade surplus (at 30-35%, larger than the c. 25% with the rest of the EU) is that Germany imports a lot via the Netherlands (and Belgium) - and has a bilateral trade deficit.

*Traitor*, n.
A benighted individual who perceives an illusory distinction between serving his nation and abetting the criminals who govern it.

by DoDo on Tue Nov 22nd, 2005 at 09:34:07 AM EST
[ Parent ]
they did preside over a huge economic boom, and they didn't destroy it.

Well, the jury is still out whether a government can actually destroy an economic boom, but surely Purple II behaved short sighted: the money that was boosted into job-creation came from the surplus of money generated by the economy, and was therefore unsustainable. When the markets started collapsing, the Netherlands suffered a double whammy, since the funds upholding these jobs dried up as well and this resulted in extra job losses.

Under Balkenende II, Zalm's Bust-and-Boom policy actually exacerbated matters further. Only now, as we enter Zalm's Boom period, we see economy starting to pick up, but marginally. The Economic Council clearly condemned both the Purple II money throwing as Zalm's counter-productive saving spree. I just barely understand Economics 101, but even I understood this. It's simple book-keeping: Purple II was spending money on projects that wasn't coming from a self-sustaining source. I'd label that with "Beware!"

And well, we can discuss long and wide about Iraq. Let's just say I'm glad they have been pulled out before the scandals really starting to break about the US and Bristish army. But why Balkenende et al. still isn't renouncing the US government just beats me...

Anyway. Another well detailed diary.

by Nomad on Tue Nov 22nd, 2005 at 09:03:40 AM EST
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"Now, the Dutch Army is withdrawing from Iraq. Great. But they shouldn't have been there in the first place! In spite of massive opposition Balkenende followed Bush and joined 'the coalition of the willing'. He was very eager to show his support and destroy the chance for a European front."

Nevertheless, great diaries and good insight into Dutch politics - appreciated!

See full comment at my diary :: I'm A Fan of Jan Peter!

ELECTION SUMMARY ::

Year   1998   2002   2003
PvdA     45     23     42
VVD      38     24     28  
CDA      29     43     44

Coalition talks started in February 2003 between Election winner CDA Jan Peter Balkenende and new Labor leader Wouter Bos who made a great recovery for PvdA with 42 seats in parliament. On the agenda was the likelihood of an Iraq War and whether the Dutch should be part of the U.S. and U.K. coalition. As the present administration was not permitted to force a decision due to their post election status, Jan Peter Balkenende needed to have the 2nd largest party PvdA support for Iraq action.


Wouter Bos flip-flop

Read on »»

My diary @dKos ::
Dutch Aid to Iraq leads to Fatwa by Ali Sistani
Sun Dec 12, 2004 at 12:30 PM PDT

"Treason doth never prosper: what's the reason?
For if it prosper, none dare call it treason."

▼ ▼ ▼ MY DIARY

by Oui on Tue Nov 22nd, 2005 at 09:28:42 AM EST
That wasn't one of his finest moments!

But it was understandable- the war started in the middle of coalition negotiations that would've ended directly if Labour had opposed the war. This was the reason they supported it, they didn't like the war or thought there'd be WMD. This is another reason why many left-wing voters currently reside with the smaller left-wing parties in the polls.

by koenzel (koen@vanschie.net) on Tue Nov 22nd, 2005 at 10:30:52 AM EST
[ Parent ]
Sometimes you just have to sit out of government on principle.

By laying out pros and cons we risk inducing people to join the debate, and losing control of a process that only we fully understand. - Alan Greenspan
by Migeru (migeru at eurotrib dot com) on Tue Nov 22nd, 2005 at 10:34:30 AM EST
[ Parent ]
Precisely, and that is why there are some doubts about the leadership abilities of Bos. He hasn't done that much in the last few years, and this certainly doesn't look good on his resume (though it was viewed as necessary at the time as it would be a stumbling block to form a coalition).

Bos also didn't really want to govern- he wanted time to 'purge' the party of  'bad' member before he wanted to enter government. But then he scored a homerun on election eve. So not entering government might've been the best for Labour (though not for the country)

by koenzel (koen@vanschie.net) on Tue Nov 22nd, 2005 at 10:48:56 AM EST
[ Parent ]
He never supported the war.. although the "political support" compromise attempt in parliament was confusing and dumb.

For the story from his side, as stated on March 19th 2003, see here (in Dutch).

by Frank (wijsneus-aht-gmail-doht-com) on Tue Nov 22nd, 2005 at 05:04:39 PM EST
[ Parent ]
.
As elder statesman and former FM in cabinet Den Uijl and van Agt -dutch- , has great esteem by all politicians at Binnenhof, Parliament and Senate.

Mr. van der Stoel has done excellent reporting on Human Rights abuse during Greece dictatorship Colonel's Regime and Saddam Hussein's Stalin dictatorship during the nineties. His UN report is exceptional and of influence to consider Dutch participation in the Coalition of the Willing. The Kurd massacre played a role as well. The PvdA was divided after meeting with Max vd Stoel to formulate policy during coalition talks in March 2003.

OSCE - Max van der Stoel Award 2005
Max van der Stoel Raad van State -dutch-
RISQ - Iraq & International Social Questions

"Treason doth never prosper: what's the reason?
For if it prosper, none dare call it treason."

▼ ▼ ▼ MY DIARY

by Oui on Tue Nov 22nd, 2005 at 03:17:07 PM EST
[ Parent ]
To be fair: they didn't support it. They waffled on the issue a bit, because of being in the negotiations. However, they actually did come out against it if it wasn't done within a UN mandate. Which it wasn't.

The government stance at the time wasn't very firm either: "moral but not military support". Which was also a consequence of the new government negotiations going on at the time.

by Frank (wijsneus-aht-gmail-doht-com) on Tue Nov 22nd, 2005 at 04:49:56 PM EST
[ Parent ]
To correct myself: it was "political support", a rather vague compromise concept that was used by the (lame duck) government in an attempt to prevent a CDA-PvdA (who were in negotiations) clash on the issue.

Unfortunately, multiple people gave multiple explanations for it, etc.

by Frank (wijsneus-aht-gmail-doht-com) on Tue Nov 22nd, 2005 at 05:01:47 PM EST
[ Parent ]


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