Eurofound's EU PolicyWatch collates information on the responses of government and social partners to the COVID-19 crisis, the war in Ukraine, rising inflation, as well as gathering examples of company practices aimed at mitigating the social and economic impacts.
Factsheet for measure NL-2020-51/1688 – Updated – measures in Netherlands
|Country||Netherlands , applies nationwide|
|Time period||Temporary, 17 December 2020 – 31 December 2021|
|Type||Legislations or other statutory regulations|
Promoting the economic, labour market and social recovery
– Support for spending, stimulus packages
|Author||Amber van der Graaf (Panteia)|
|Measure added||09 January 2021 (updated 09 August 2021)|
The Netherlands has a decentralised system of governance and many social security and social services are implemented at the municipal level. As such, municipalities have also been closely involved in implementing measures to reduce the impact of COVID-19 on people and organisations.
The second wave of COVID-19 has proven to be heavy on local governments. With the measures in place, the extra costs for the local governments are rising, yet they still have to provide sound, regular services to their inhabitants. In order to make sure that the local governments can continue to serve their inhabitants, the government is introducing a new financial compensation package to support them.
The measure entails extra financing to municipal governments across a range of policy areas and policy initiatives.
The following updates to this measure have been made after it came into effect.
|16 December 2020||
This measure is set to expire on 31 December 2021.
No information available yet.
|Does not apply to workers||Does not apply to businesses||Applies to all citizens|
Social partners jointly
Local / regional government
Social partners' role in designing the measure and form of involvement:
|Trade unions||Employers' organisations|
Social partners' role in the implementation, monitoring and assessment phase:
The social partners have been involved in the development of this measure, though beyond the VNG and IPO, it is unclear what the precise role was of peak level trade unions and employer organisations. The VNG and the IPO, which are a cooperation between the municipalities in The Netherlands, have been consulted, just like the representatives of the local governments. This social dialogue took place at the national level.
The Ministry of the Interior and Kingdom Relations has requested the social partners’ involvement in designing the measure. This measure has been designed through the existing and regular governmental meetings on financial issues, “Bestuurlijk Overleg Financiële verhoudingen” (a consultation with the local governments about their finances). Furthermore, the minister states that the social partners will continue to be involved and consulted. The VNG has been the most involved social partner regarding this measure.
The social partners seem to be supportive of the measures. The VNG has provided more information on their website regarding this measure, including an illustrated overview of the different compensations. The IPO has not released a statement on their website regarding this measure. Divosa which is the association of municipal directors in the social domain, while not being mentioned by the minister as being an involved party, does take a supportive stance in their press release on this measure.
Eurofound (2021), Extra compensation for local governments, measure NL-2020-51/1688 (measures in Netherlands), EU PolicyWatch, Dublin, https://static.eurofound.europa.eu/covid19db/cases/NL-2020-51_1688.html
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