Law Sustainable Public Finances

Original Language Title: Wet houdbare overheidsfinanciën

Read the untranslated law here: http://wetten.overheid.nl/id/BWBR0034360/2015-07-22/0

Law of 11 december 2013 on sustainable finances of the public sector (law sustainable public finances) we Willem-Alexander, by the grace of God, King of the Netherlands, Prince of Orange-Nassau, etc. etc. etc.
All who read this will see or hear, greetings! do: So We have considered, that it is desirable to adopt a legislation for the targeted sustainable finances of the public sector in national and European context;
So it is, that we, the Advisory Department of the State Council heard, and with agreement of the States-General of the Netherlands, as we find and understand well goedgevonden and understanding to this: article 1. : Definitions In this law, the following definitions shall apply: fiscal policy: the general policies with respect to the preparation, establishment, execution and modification of the budgets of revenue and expenditure of the public sector in multiannual perspective.
Administrative consultation: consultation of our Minister of the Interior and Kingdom relations and our Minister of finance, as managers of the municipality and the County Fund, with the bodies that can be considered representative for the relevant local and regional authorities, which can be extended if necessary consultation with our Minister of infrastructure and the environment and the body which can be considered representative for the district water boards.
CBS: Statistics Netherlands.
CPB: CPB.
Public sector: the organizational whole of: a. the national service;
b. the social funds;
c. the decentralized authorities, and d. other legal persons with statutory tasks.
Local authorities: provinces, municipalities and water boards.
EMU-balance: the balance of revenue and expenditure of the public sector in a year, being the nettofinancieringssaldo of the public sector, calculated in accordance with the rules of the European system of national and regional accounts in the European Union.
EMU deficit: a negative balance.
EMU debt: the stand per 31 december of a year of the debts of the public sector, calculated in accordance with the rules of the European system of national and regional accounts in the European Union.
Individual reference value: the value of the individual municipality, province and water board applicable for a share in the EMU-balance.
Meerjarencijfers: the estimates of the revenue and expenditure of the four on the financial year connecting years referred to in article 13, point (c) of the Comptabiliteitswet 2001.
MTO for the structural balance: the medium-term objective for the structural balance of the Netherlands Member State.
Other legal persons with statutory tasks: the legal entities, in so far as such a mission under or pursuant to the law and to be funded in whole or in part from the proceeds of levies set by or pursuant to the law, referred to in article 91, paragraph 1 (d) of the Comptabiliteitswet 2001, with the exception of the local authorities and the social funds.
National service: the organizational whole of the ministries and other State organs which the revenue and expenditure shall be included in the State budget.
Social funds: the funds raised in the framework of budgetary policies be counted among the budgetdiscipline social security sectors and the labour market and concern.
Structural EMU-EMU-balance: the balance, adjusted in accordance with the EU method for business fluctuations, and for one-off and temporary measures.

Article 2. Fiscal policy: 1 our Minister of finance suggests trend budgetary policy with regard to the revenue and expenditure of the national and social funds.
2 The trend fiscal policies: a. in accordance with fixed frames for the expenditures and non-tax revenues within the budgetdiscipline sectors referred to in article 13 (a) of the Comptabiliteitswet 2001;
b. having regard to the starting point of automatic stabilization for tax revenue and social security contributions, and (c). on the basis of the meerjarencijfers and macro-economic estimates of the relevant variables of the CPB.
3 the conduct of fiscal policy also shall be: a. trend with regard to: i. the applicable MTO for the structural balance;
II. the applicable standard in the European Union for the actual EMU-balance;
III. the standard in force within the European Union for the actual EMU-debt;
b. in accordance with the procedures laid down in the European Union for respecting the elements referred to in subparagraph (a);
(c). in the light of one of the institutions of the European Union to the Member State in respect of the Netherlands given recommendations for the MTO and standards referred to in subparagraph (a), and (d). taking into account the national standards and international standards for the multiannual forecast actually EMU-balance.
4 our Ministers who take the concerned, in accordance with the judgement of the Council of Ministers, uitgavenbeperkende and/or inkomstenverhogende adequate measures, if it is established by Our Finance Minister, that the trend budgetary policy is not sufficiently pursued leads to respect the standards and recommendations referred to in the third paragraph.
5 the fourth member is at any rate apply if the competent institution of the European Union determines that it is not sufficiently pursued fiscal policy leads to a respect in paragraph 3, part a, to this end, standard and referred to a recommendation, in which case the appropriate action to take, to budgetary size and in time , in accordance with the recommendation.
6 Our Minister of finance takes the measures referred to in paragraph 5, in the form of a recovery plan in a to the States General to offer fiscal note.
7 the States General is on the implementation of a recovery plan referred to in paragraph 6, at least annually in the budget informed.
8 The Advisory Department of the Council of State is about a note referred to in paragraph 6 and heard about the budget.
9 Our Minister of finance allows to calculate the estimate of the EMU-EMU-debt balance and of the use of the multiannual budgetary estimates of the public sector, based on the macro-economic variables of the CPB.
10 our Minister of finance bases the medium-and long-term begrotingsbeleid on independent studies on sustainability of the finances of the public sector, which was initiated by him, if necessary.
11 for the assessment of the fiscal policy pursued over a year shall be based on the calculation of the CBS of the realized EMU-EMU-debt and balance of the realized.

Article 3. : Standard budgetary policy decentralized authorities 1 The local authorities and other designated under article 4 legal persons with statutory tasks are held an equivalent effort as for the national and social funds in respect of compliance with the standards referred to in article 2, paragraph 3, and shall take the necessary measures.
2 our Minister of Finance shall, in accordance with our Minister of the Interior and Kingdom relations and the Minister of infrastructure and environment, and in compliance with the third and fourth member, what for decentralized authorities as an equal effort. In the determination of the equivalent effort, the outcome in terms of the collective share of the local and regional authorities in the EMU-balance in a reasonable proportional to the share of the decentralized authorities jointly in the collective expenditure.
3 on the equivalent effort, to be delivered by the local authorities, is, before its adoption, administrative consultations aimed at reaching agreement.
4 In the administrative consultation come further in any case: (a) the debt position of local and regional authorities;
b. the investment challenges for local and regional authorities, which they are supposed to do by the State and the social investment tasks that are considered desirable;
c. the size of the local and regional authorities present at the capabilities;
d. the expected development of the actual balance of the decentralized authorities, as estimated by the CPB.
5 our Minister of Finance shall notify the intended adoption of the equivalent effort, referred to in paragraph 2, in writing, to the States-General after the consultation referred to in paragraph 3, has been made. The adoption of the equivalent effort occurs after at least four weeks after, the previous sentence mentioned in communication have passed and the House of representatives on this intention.
6 the result in terms of a collective share of the EMU-balance of the decentralized authorities jointly, broken down by a share for the provinces, the municipalities and the water boards together together together shall be made public by placement in the Government Gazette.
7 the CBS provided to our Minister of finance, our Minister of the Interior and Kingdom relations and the Minister of infrastructure and the environment annually on their request information on the shares of the provinces collectively, the municipalities and the water boards jointly jointly in the EMU-balance and in EMU-debt and about the individual shares of the water boards in the EMU-balance and EMU-debt.

Article 4. : Powers in relation to other legal persons with statutory tasks


1 by a decision of the Minister of finance may, in accordance with our Ministers who have legal powers in relation to other legal persons with statutory tasks, legal persons belonging to the category other legal persons with statutory tasks are designated, which require the prior consent of him, if they intend to finance their activities by putting on a loan on the money or the capital market.
2 our Minister of finance may, in accordance with our Minister concerned referred to in the first paragraph, to an appropriate legal entity its assent to it plans to attract a loan remember, if it considers that by putting on a loan is no equivalent effort as referred to in article 3.
3 our Minister of finance may, in accordance with our first Member referred to in the relevant Minister, determine what information an appropriate legal entity provided for him by him to make the assessment, referred to in paragraph 2.
4 Before Our Minister of finance decision to designate a legal person as referred to in paragraph 1, or to remember his agreement to the intention to attract a loan, it shall inform the legal person concerned the opportunity of being heard.

Article 5. : Setting individual reference value for the EMU-balance 1 the individual reference value for the EMU-balance is made next to the own share, also the share of the EMU-balance of a public sector body that is established by a Community regulation referred to in the law common rules, to which the local Government take part, as far as this proportion to the participating local Government should be held responsible.
2 our Minister of the Interior and Kingdom relations and the Minister of infrastructure and the environment may by order in Council rules about: a. the determination of the individual reference value for the EMU-balance, both for the estimate as this can be derived from the budget, if the budget for the realization after;
b. the share accruing from a public body as referred to in paragraph 1, in the individual reference value for the EMU-balance to the participating local governments.
3 our Minister of the Interior and Kingdom relations and the Minister of infrastructure and the environment in accordance with our Minister of finance the individual reference values for decentralized authorities.

Article 6. : Correction mechanism decentralised authorities 1 if the estimates of the CPB or realisations of the CBS shows that the collective share of the EMU-balance of the decentralized authorities jointly referred to in article 3, paragraph 6, multiannual is exceeded, after consultation, by order in Council States measures are specified in compliance with the established result in terms of the collective share of the EMU-balance of the decentralized authorities jointly referred to in article 3, paragraph 6.
2 only if a multi-year crossing referred to in the first paragraph, it is clear from realisations of the CBS, then it may impose sanctions are part of the measures referred to in the first paragraph.
3 under the first paragraph shall An order in Council does not occur earlier than four weeks after the date of issue of the Official Gazette in which he is placed. The placement shall be immediately notified to the two rooms.

Article 7. : By calculating EU penalty to decentralized authorities 1 this article applies if: (a). Netherlands on the basis of the European regulation on the EMU balance-and EMU-debt-standardization a fine is imposed or is required to place an amount in escrow, and b. the collective share of the local and regional authorities in the EMU-balance exceed the in article 3 referred to in paragraph 6, collective participation in the EMU-balance, if the balance is less than zero.
2 after a law laying down or consultation is at States amending the financial state of the province, by the municipalities Fund or Fund of the Ministry of infrastructure and the environment has been identified which part of the cost of the fine or of the rentedervings sanctions referred to in paragraph 1 is allocated to the provinces, the municipalities jointly, or jointly the water boards together.
At the allocation is in any case having regard to height and the duration of the EMU deficit of Netherlands and on the extent and duration of the exceedance of the collective referred to in article 3, paragraph 6, shares.
3 rentedervings the fine or the cost to the provinces or municipalities jointly together will be charged to the General Fund of the county or municipality benefit fund. For the water boards is the fine or be rentedervings the cost charged to the individual water boards.
4 our Ministers concerned, may, after consultation, decide a States referred to in the first paragraph shall fine attributable in whole or in part to a province, a municipality or a water board.
5 The imputed share of the fine referred to in the fourth paragraph, will be deducted from the allowance where the relevant province or municipality on the basis of the financial verhoudingswet claim to, or charged to the water board.

Article 8. : NL-penalty for other legal persons with statutory tasks 1 our Minister of finance may, in accordance with our Minister concerned referred to in article 4, second paragraph, impose a fine to a legal person referred to in that subsection, if the legal person despite the agreement are plans to remember putting on a loan.
2 the penalty has the character of a non-interest-bearing deposit, is limited to a maximum of the amount of the attracted loan and is maintained as a budget reserve referred to in article 5, fourth paragraph, of the Comptabiliteitswet 2001, attached to a budget article of the budget of the Ministry of finance.
3 our Minister of Finance shall assess annually, in accordance with our Minister concerned referred to in the first paragraph, or releasing the depot fits in the policy on the equivalent effort that the legal person concerned on the basis of article 3, paragraph 1, is supposed to deliver to the respect of the standards referred to in article 2, paragraph 3.
Releasing the depot takes place as soon as possible if appropriate in the policies here.

Article 9. Penalties: application if application is given to the power to accruing a penalty or the imposition of a penalty, referred to in articles 7 and 8, respectively, before they be implemented, the Tweede Kamer der Staten-Generaal of the intention to do so. The powers referred to in the preceding sentence, only implemented after four weeks have elapsed from notification to the House of representatives, unless the House of representatives within this term against the penalty.

Article 10. : Amendment of some laws 1 [Red: modifies the Gemeentewet.] 2 [Red: modifies the Provinciewet.] 3 [Red: modifies the law financing decentralized authorities.]

Article 11. : Final provisions 1 this law is cited as: law sustainable public finances.
2 this law shall enter into force with effect from 1 January 2013. If the Official Gazette in which this law is placed, is issued on or after this date, then shall enter into effect as of the day following the date of issuance of that official Gazette.
Charges and recommend that this in the Official Gazette will be placed and that all ministries, authorities, colleges and officials who it may concern, to the exact implementation will keep the hand.
Given to Wassenaar, 11 december 2013 Willem-Alexander J.R.V.A., the Minister of finance
Dela Cruz The Minister of the Interior and Kingdom relations, R.H.A.
Minister of infrastructure and environment, M.H.
Schultz van Haegen-Maas Geesteranus Issued the 13th december 2013 The Minister of security and justice, I.W.
Opstelten