Economy
The Reduction of Unemployment Benefit Duration Cannot Withstand Scrutiny
Economist Frank Kalshoven argues that the coalition’s plan to reduce unemployment benefit duration from two years to one year is economically flawed, based on a critical evaluation by the Central Planning Bureau (CPB). Although the measure aims to increase labor supply, the CPB estimates it would only create approximately 8,000 full-time jobs, a negligible effect given that long-term unemployment is already low. While the reform saves the treasury 1.3 billion euros, this gain stems primarily from income loss for households rather than increased earnings, thereby raising risks of poverty, debt, and inequality. Kalshoven concludes that the negative social consequences outweigh the limited economic benefits.
Ozetta summarises; the reporting is the newsroom's