Source: European Parliament
Question for written answer E-002277/2025/rev.1
to the Commission
Rule 144
Auke Zijlstra (PfE)
According to the Commission Recommendation of 4 June 2025 for a Council Recommendation on the economic, social, employment, structural and budgetary policies of the Netherlands, the Netherlands income tax system treats certain assets differently from others, which affects the distribution of capital and distorts economic decisions. The recommendations state that assets in the form of housing receive preferential treatment, which stimulates demand in the market for owner-occupied housing, but reduces the disposable income of households[1].
This then exposes households to greater economic risk during economic shocks as disposable income is placed under pressure by high mortgage repayments during the mortgagor’s years of active employment.
However, a recent European Parliament study found that, after Belgium, the Netherlands has the second lowest exposure to interest rate changes in the EU. Only 15 % of Dutch households have variable mortgage rates, which means that Dutch households are actually better armed against economic shocks and sudden increases in interest rates[2].
- 1.Why did the Commission not take into account the stabilising factor of the high proportion of fixed-rate mortgages in the Netherlands in its assessment of economic risk?
- 2.Does the Commission agree that, in times of economic downturn, owner-occupied housing is the best ‘store of value’ for families with average incomes, as opposed to share portfolios, for example?
Submitted: 5.6.2025
- [1] COM(2025)0219, recital 21.
- [2] BERG, Tobias and HASELMANN, Rainer, Assessing real estate risks and vulnerabilities: Hidden cracks in the financial system?, Economic Governance and EMU Scrutiny Unit (EGOV) Directorate-General for Economy, Transformation and Industry, PE 764.351 – April 2025, p. 14.