As the Netherlands basks in the glow of a historic World Cup double, the British establishment might do well to take notes. The Dutch royal family, no strangers to fiscal prudence, have demonstrated that even in times of triumph, the bottom line matters. While the UK grapples with stubborn inflation and a gilt market that oscillates with every political hiccup, the Oranje have quietly built a winning formula on and off the pitch.
Let us be clear: this is not merely a sporting achievement. Winning both the men's and women's World Cups is a feat of national discipline, a testament to efficient allocation of resources. The Dutch have invested wisely in grassroots football, avoiding the bloated transfer fees and vanity projects that plague the Premier League. Their model is one of sustainable growth, a concept the Treasury might consider if they ever tire of quantitative easing.
The British monarchy, meanwhile, appears stuck in a cycle of expenditure without accountability. The cost of the Crown, estimated at over £100 million annually from the Sovereign Grant, is a liability that would make any CFO blanch. Yet the Dutch royal family, who receive a state allowance tied to inflation adjustments, have managed to maintain relevance without draining the public purse. Their celebration of the World Cup double was notably understated, a reflection of a culture that values substance over spectacle.
Capital flight, a perennial concern for the City, may also be influenced by such displays of competence. International investors eye the stability of nations that can produce consistent winners, both in sport and economics. The Netherlands boasts a triple-A credit rating and a trade surplus; the UK, by contrast, has seen its creditworthiness questioned amid political turmoil. The Dutch example suggests that fiscal responsibility and sporting prowess are not mutually exclusive.
Of course, the Bank of England will take no notice. Governor Andrew Bailey is too busy dodging questions about inflation forecasts that seem to change with the wind. But perhaps he should look to Amsterdam, where the Dutch central bank (DNB) has maintained a hawkish stance, reining in credit growth and keeping a lid on asset bubbles. The result? A more resilient economy that can fund national pride without resorting to quantitative easing.
So as the Dutch royals lift their trophies, the British establishment might consider a different kind of coup: a fiscal one. Slash the bloated state, discipline the spending habits of the Crown, and focus on sustainable investment. Otherwise, we shall be left celebrating only our history of fiscal profligacy, while others show us how to win in the long run.