Cabinet will have to find savings of €6bn next year: VVD and PvdA

The cabinet will have to find structural savings to generate €6bn next year, according to the parliamentary Liberal and Labour parties on Thursday.

‘That is the amount needed to head off intervention by Brussels,’ Halbe Zijlstra, who leads the right-wing Liberals, said.

Labour’s finance spokesman Henk Nijboer is quoted as saying by the Financieele Dagblad that Brussels’ agreements are crucial. ‘We will keep to the EU budgetary rules,’ Nijboer said.

Earlier this week, European Commissioner Olli Rehn said the Netherlands would still have to meet the 3% eurozone target next year, although there would be some leeway if the economy took a turn for the worse.

Forecasts

The most recent estimates put the budget deficit at 3.9%. The central bank said earlier this week the government would have to find between €6bn and €8bn.

The government’s macro-economic planning bureau CPB will present its latest forecasts on Friday.

Earlier this year, the government reached a deal with employers and unions to shelve a €4.3bn austerity package in an effort to stimulate economic growth. Ministers will take a final decision on whether or not to make more cuts in August.