Dutch Prime Minister Jan Peter Balkenende is determined to put a cap on excessive bonuses for top bankers. In an exclusive interview with Radio Netherlands Worldwide, he stressed that “We must take action now”.

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Mr Balkenende will fly to Pittsburgh, Pennsylvania next week to attend the summit of G20 leaders. The world’s leading economies will try to reach agreement on concrete measures to curb multi-million-euro bonuses in the financial sector.

Whether such agreement will be reached in Pittsburgh is far from certain, given the differences between the countries taking part. The US and Great Britain, for instance, are reluctant to adopt any far-reaching measures.

Unacceptable
But according to Mr Balkenende, the heads of state and government have no alternative than to act forcefully to curb bonuses. The prime minister says it’s unacceptable that top bankers rake in millions of cash, while their banks are bailed out with government money and citizens either lose their jobs or live in fear of losing them.

On the eve of the G20 summit, the Dutch cabinet has sent a letter to the governments taking part explaining the Dutch approach. Banks in the Netherlands have agreed a code aimed at scaling down bonuses. In addition, legislation is now underway that will force banks to reveal all bonuses. “At issue here is self-regulation coupled with government regulation,” Mr Balkenende explained. French President Nicolas has welcomed the approach. “Mr Sarkozy too is determined to bring the G2 summit to a successful conclusion,” according to the Dutch Prime Minister.

Royal family
In the interview with Radio Netherlands Worldwide, Mr Balkenende dwells on the allowances for the Dutch royal family during these times of crisis. And he responds to renewed speculation about his possible candidacy for the presidency of the European Council.