NETHERLANDS - Dutch economist Professor Lans Bovenberg says the collapse of the Dutch government coalition late last week now offers social partners a new opportunity to resolve their dispute about an increase in the state (AOW) retirement age from 65 to 67 and for second pillar pensions.

"The discussion about the AOW will return during negotiations for a new cabinet, so employers and employees now have a second chance to formulate comprehensive proposals that avoid the controversial issue of hard labour jobs," Bovenberg told IPE.

"However, if they cannot find common ground now, a new government could take less attractive decisions," warned the economist linked to Tilburg University.

Social partners failed to reach an agreement on the AOW last year during discussions within the Social and Economic Council (SER), so the Dutch Cabinet stuck with its plans to raise the official retirement age by two years.

Bovenberg noted a new government could also have a different view on the findings presented recently by the Don, Frijns and Goudswaard committees, which advised the government on pension reform.

"During the coming elections, the voters can decide in favour of a rise of the retirement age to 67, or to support a flexible system that allows them to choose when to retire, as we are proposing," claimed Agnes Jongerius, chair of FNV, the largest Dutch trade union.

The Association of Industry-wide Pensions Funds (VB) said it has also spotted opportunities for new negotiations between social partners, and hope this will present the new government with sound proposals on the AOW and additional pensions, accoeding to VB spokesman Gert Kloosterboer.

The Dutch government fell on Friday 19 February after Labour Party PvdA pulled out of the coalition, leaving the Christian Democrats of CDA and its junior partner, the religious right party Christen Unie, to continue the cabinet's current affairs.

If you have any comments you would like to add to this or any other story, contact Julie Henderson on + 44 (0)20 7261 4602 or email julie.henderson@ipe.com

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