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Europe Live Friday 24th May 2013

Netherlands, the recession threatens budgetary consolidation

5th March 2012

The Netherlands, that are now affected by recession, will not be able to keep within the 3% GDP limit allowed with regard to their budgetary deficit by 2015. According to the official statistics institute, the Dutch GDP may indeed decline by 0.75% in 2012 and the public deficit may reach 4.5%. If no additional measures are taken by the government to reduce the country's spending the budgetary deficit is due to represent 3.3% of the GDP in 2015. The debt may easily rise above the 60% mark forecast by the EU to reach 75.8% of the GDP. The Dutch government coalition must therefore come to a rapid agreement.

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