CDA institute identifies savings of €12bn

Tuesday 15 December 2009

The Christian Democratic party's academic institute says the government can cut spending by a structural 2% of GDP (€12bn a year) by reducing the size of the government apparatus, news agency ANP reports.

The CDA asked the institute to try to identify the €36bn-worth of cuts needed to bring government spending under control.

As well as the cutting the size of the government, the institute says greater economic productivity can generate €6bn and increasing labour force participation rates will raise a further €6bn.

Efforts to make the health service more efficient will bring in a further €6bn in savings, as will a programme of wage moderation for civil servants.

© DutchNews.nl

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