5 months Ago
The Cost of Economic growth
Current figures to meet NATO's target are between €16 billion and €19 billion per year. But Heinen warned that the figure was likely to increase. "The dollar figure goes up because it is a percentage of the economy," he said. Heinen emphasized the necessity of a "return to realism" in national budgeting and suggested some difficult fiscal decisions may be coming without details.
Before, Heinen had criticised the generous public spending pursuances instead of focusing on targeted investment. "There's no such thing as free lunch in the world of defence," he repeated, adding that new cabinets would make the final decisions on how to finance more generous defence budgets.
VVD Chief Calls for Reduction in Budget and Increased Taxes
VVD party leader Dilan Yeşilgöz also weighed in on the matter, stating that the party supports the NATO figure but argues government spending should be slashed as the financing means. But her commitment came with a proviso: that spending cuts alone may not be enough to close the funding gap and that tax increases or reductions in development aid — currently €3.5 billion — may be under consideration, depending on which parties make up a future coalition.
Heinen categorically dismissed the proposal of a joint European borrowing facility to cover costs relating to NATO, saying every member state should pay its own way.
