The European Union must provide large-scale aid to countries like Italy and Spain, which have been severely hit by the coronavirus crisis. This view is shared not only by some Dutch opposition parties but also by a few parties in the government led by the liberal Prime Minister Mark Rutte. They thus diverge from the Dutch cabinet's previously dismissive stance on EU funding to combat the corona crisis.
A large portion of EU member states want to deploy the European ESM emergency fund of 410 billion euros without the usual strict conditions to fight the coronavirus crisis. Together with a few other countries, the Netherlands is demanding stringent conditions for using this emergency fund. The lack of solidarity could jeopardize the EU, warned French President Emmanuel Macron. Meanwhile, Dutch Finance Minister Wopke Hoekstra has apologized for the blunt Dutch rejection.
A group of Italian politicians sharply criticized the Netherlands in an open letter published in the Frankfurter Allgemeine Zeitung. In the letter, they appeal to the Germans’ sympathy. “The Netherlands leads a group of countries opposed to deploying the emergency fund. Germany also wants to align with this group. The Dutch stance shows a lack of ethical values and solidarity. It was this solidarity that led to half of Germany’s debt being forgiven after World War II. Dear German friends, make the right choice.”
Dozens of Dutch economists are also urging the Dutch government to change its position on financial support for Southern European countries. They consider the dismissive attitude of Minister Wopke Hoekstra and Prime Minister Mark Rutte to be “untenable.” Hoekstra has since admitted that he did not communicate the Dutch position well.
Hoekstra and Rutte have faced heavy criticism for opposing joint European government bonds to finance the coronavirus response. They also rejected unconditional support from the ESM emergency fund for Southern European countries. Former minister Jeroen Dijsselbloem (PvdA) also opposed the Dutch refusal.
The professors and former bank directors believe the coronavirus crisis must not plunge the eurozone into a crisis. They argue that such a stance is also in the Netherlands’ own interest. Furthermore, the Dutch experts warn that the Netherlands will lose influence in Europe if it continues to dig in its heels now.