In an opinion published in het Nederlands Dagblad on 21 September 2022, Ivo Arnold, Professor of Monetary Economics at Erasmus School of Economics, discusses the consequences and possible solutions of the energy crisis.
During Budget Day, the government's plans for the coming year were announced. For instance, the decrease in purchasing power will be partly compensated, especially for poorer households. Moreover, the cabinet has grand plans for the social and economic consequences of the energy crisis. A good thing, according to the professor. He speaks less enthusiastically about the implementation problem the Netherlands has. The plans described are a good thing, but implementation is proceeding too slowly in practice, Arnold argues.
Moreover, according to the professor, a major problem is the insufficient success in getting employees to contribute to the purchasing power adjustment. Rising energy prices are increasingly leading to higher prices of other products. However, this inflation is ahead of the rise in the price of labour, wages. A consequence of this is rising tension between unions and its members. It is therefore very important to have a social agreement, according to Arnold.
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You can read the full article from het Nederlands Dagblad, 21 September 2022, here.
