Dutch Government Collapses Over Childcare Benefits Scandal
Prime Minister Mark Rutte’s Cabinet resigned on January 15 over a childcare benefits scandal, which comes just two months before the general elections scheduled for March.
The Netherlands has been battling COVID-19 since March, and its inability to stem its spread along with the recent scandal has worsened political instability.
What Was the Scandal About?
The Dutch Tax Authority wrongfully launched investigations into thousands of families for fraudulently claiming childcare benefits. These investigations were prompted by minor “administrative error[s]” such as missing signatures or incomplete forms.
More than 20,000 families appeared before courts and were ordered to repay these benefits, while being denied the right to appeal. This led to many facing severe financial problems, with some close to bankruptcy. The Tax Authority has admitted to specially singling out 11,000 people based on their dual nationality status after accusations of racial profiling arose.
However, Dutch prosecutors have refused to launch an investigation into the alleged discrimination, claiming that no evidence of criminal activity was found.
What Will Happen Now?
Rutte will continue to run the government in a caretaker capacity until the next elections. Furthermore, the government also announced that EUR 30,000 must be paid in compensation to each parent wrongfully accused of financial misconduct.
Written by Shayaan Ali Meerza
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