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New austerity measures not yet needed, says CPB chief

Thursday 20 December 2012

Even though the budget deficit will remain above the eurozone target of 3%, the government should not now announce new austerity measures, the head of the CPB forecasting agency says in Thursday’s Financieele Dagblad.

Ministers should trust in their current strategy, Coen Teulings is quoted as saying.

‘The coalition agreement means the Netherlands will be fine. In the long term, the strategy will lead to growth so there should be no fast measures,’ Teulings said. ‘The man in the street needs to know where he is.’

March 2013

On Wednesday, the CPB issued new figures showing the economy will shrink by 0.5% next year, and the budget deficit will remain at 3.3%. The CPB in September forecast growth in 2013 and that the deficit would drop to 2.7%.

In a reaction, ministers said they would wait for the spring forecasts in March before deciding what action to take.

Teulings told the FD this would not be sensible, because of the need for clarity in terms of the economy. ‘Keeping calm is important, and taking panic measures would be very bad,’ he said.

© DutchNews.nl


Readers' Comments

This would be good news as long as they are not keeping their heads in the sand.

By Al | 20 December 2012 10:29 AM

"In the long term, the strategy will lead to growth" ...WRONG! This strategy will lead to less budget deficit and NOT GROWTH.

By rapid | 20 December 2012 11:52 AM

New austerity measures not yet needed, says CPB chief. The 3%. Three is the first odd prime number, aliquot sum of 4; Genetic information is encoded in DNA and RNA using a triplet codon, Macbeth’s three witches or your governments hang-over?

By Terence Hale | 20 December 2012 6:52 PM

In both the long term as well as the short, spending more than one takes in leads to more debt. Follow the lead of the United States of America toward accelerated self-destruction! What a concept!

By Drawer 22 | 20 December 2012 7:17 PM

When a government runs out of ideas to boost it's economy, .. it turns to austerity?

In retrospect, NL guv tried to grab more money from us in taxes +(19 to 21% VAT), thinking too much about filling the coffer to pay back the deficit. This has made industry suffer & so on.. If only we had competent leaders & not just a bunch of muppety delusional show-offs :P

By The visitor | 21 December 2012 2:41 AM

New austerity measures not yet needed, says CPB chief. I am very skeptical over the prediction of the Campbell Soup Company (NYSE.CPB).

By Terence Hale | 21 December 2012 4:01 AM

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