Brussels tells Holland to cut budget deficit

Wednesday 17 March 2010

The European Commission has told the Netherlands to come up with measures to get its budget deficit and national debt back under control.

The Netherlands is one of 14 European Union countries whose plans to get their finances in order have been assessed by economic and monetary affairs commissioner Olli Rehn.

In his assessment, Rehn said some plans lack detail while others are over-optimistic about the improving economic climate. The Netherlands is one of the countries using favourable economic forecasts, he said.

Deficits

In addition, the plans presented by the Netherlands only cover 2011 and 2012, not 2013 which is when excessive deficits are supposed to be eradicated.

'It would be appropriate for the Netherlands to identify the consolidation measures from 2011 onwards to bring the deficit below 3% of GDP by 2013,' the commission said in a statement. 'The invitations to the Netherlands concern the specification of the budgetary strategy to correct the excessive deficit and reduce debt, and improvements to long-term sustainability.'

Under EU monetary rules, countries' budget deficits may not exceed 3% of GDP. The Dutch deficit is set to top 6% this year.

© DutchNews.nl

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