The Netherlands will give billions to increase sustainable energy supplies

The Netherlands plans to spend billions of euros to increase sustainable energy supplies next year as its economy recovers from the crisis caused by the COVID-19 pandemic. The government informed about it on Tuesday. The 2022 budget includes up to € 7 billion in subsidies for sustainable energy projects and other measures to combat climate change, as the country seeks to meet environmental goals that it has largely failed to achieve in recent years. Climate spending plans are the most prominent element of the budget, leaving many other issues untouched, as the government is still in office as an official, eight months after resigning due to a child benefits scandal. Efforts to form a new government have been tied since the March elections, in which Prime Minister Mark Rutte's conservative party won the most votes, but not enough to rule without coalition partners. The dragging process of government recovery has negatively affected the confidence of the general public in political institutions, opinion polls have shown. However, this has not hurt the Dutch economy, which has recovered from the downturn caused by the new coronavirus pandemic in recent months, more than many of its neighbors. The euro area's fifth largest economy is expected to grow by 3.9% this year and by 3.5% next year after a record decline of almost 4% in 2020 due to the pandemic. The economic recovery is also visible in the labor market, where bars and restaurants have difficulty finding enough staff to allow them to be fully open. Rich government support has helped many companies survive the pandemic and kept unemployment at historic lows. At present, there are more job offers than people looking for work. According to ING chief economist Marek Blom, the Dutch economy is doing much better than expected, but warns that political instability poses a risk to the future. "Urgent issues such as long-term climate policy, pensions, the labor market and housing reforms have been untouched for more than a year. This creates uncertainty because companies willing to invest in cleaner production technologies and employees do not know what to expect," he added.