European countries in a strong financial position such as the Netherlands should consider delaying their budget cuts in order to stimulate the European economy, the International Monetary Fund said in a report on Wednesday.

The Netherlands and Germany in particular are currently able to lend money at cheap rates and should stop worrying about their budget deficits for the time being. With firm promises on cuts, these can be postponed for the long-term in order to stimulate growth in the European economy, says the IMF.
The IMF has again called on EU countries to find a solution for the debt crisis. It also wants far-reaching reforms to strengthen the financial sector and to secure future economic growth.
A global economic recession cannot be ruled out, says the IMF, but it does expect some limited growth.
The Dutch government is currently cutting spending by €18bn over the next four years but has said further cuts will be unavoidable if the economy deteriorates.