The leaders of the three parties which make up the current ruling alliance have planned at least three weeks for talks on new budget cuts to meet eurozone rules, according to media reports on Wednesday.

Prime minister Mark Rutte, who leads the VVD Liberals, Maxime Verhagen as acting head of the Christian Democrats, and Geert Wilders, founder of the anti-Islam PVV, will start negotiations at the premier’s residence on March 5. The VVD and CDA form a minority cabinet backed by the PVV on the economy.
The aim of the talks is to find a solution to the mounting state deficit, which reached 4.5% at the end of last year. Under monetary union rules, the deficit should not exceed 3% of gross domestic product. The government’s macro-economic policy arm CPB will publish its latest forecasts on March 1.
Options
The government is looking at a new round of spending cuts which could add up to as much as €15bn according to the media reports. Changes to the generous Dutch system of mortgage tax relief are also on the cards, although all three parties had pledged not to reform the system this cabinet period.
Wilders has already called for large cuts in the aid budget in return for his support while Verhagen says he wants to see structural reforms as well as a reduction in spending.
According to the Financieele Dagblad, some of the cuts being suggested could take effect this year. The paper says changes to redundancy law, pension law and an increase in taxes and premiums may also be on the agenda.

Stable economy
Meanwhile, the Netherlands has escaped censure in the European Commission’s first report on macro-economic imbalances within the EU. The report singled out 12 countries, including Belgium, Denmark, Sweden and Britain for further study.
Dutch finance minister Jan Kees de Jager welcomed the report, saying he was pleased the Commission had recognised the strength of the Dutch economy.