Mark Rutte: We’re going to be a bit poorer in the West amid inflation

Dutch Prime Minister Mark Rutte on Wednesday stated there’s a "limit to what a government can do" to assist individuals amid surging inflation.

Speaking at the World Economic Forum in Davos, Switzerland, Rutte informed CNBC's Steve Sedgewick that the Dutch authorities would assist individuals on decrease and lower-middle class incomes with their rising vitality payments.

However, he added that "you cannot help everyone so … we in the West will be a bit poorer because of the high inflation, the high energy costs."  

Inflation hit 9.6% in the Netherlands in April, in accordance to the Dutch statistics physique CBS. This was barely decrease than the 9.7% inflation recorded in March, although it remained traditionally excessive.

The Dutch authorities in March introduced assist measures to assist with the burden of rising costs. This included elevating its one-off vitality allowance to 800 euros ($852), for individuals with incomes round the nation's social help profit stage.

Rutte acknowledged that rising costs would current "societal pressures," which he stated may be seen taking part in out in elections throughout Europe.

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But he added that "people generally understand that there is a limit to what a government can do, as long as they feel that it is done in an honest way that you've supported people who need it most."

Rutte stated that one in all the priorities for his coalition authorities, which was put in in January and took practically 10 months to kind, was social mobility. He stated the authorities wished to cope with the nation's "meritocracy trap" and that different components, together with schooling, may assist individuals to develop into a part of what he referred to as the "Dutch dream."

With regards to the European Central Bank's strategy to tackling inflation in the eurozone, Rutte stated there are "ramifications coming out of the energy crisis and out of the Ukraine crisis which are unavoidably also impacting on the macroeconomic figures that I cannot blame the central bankers for this."

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