The cabinet is preparing to make extra cuts of up to €10bn in order to balance the government’s books, the Telegraaf reports on Friday.

The paper says sources in The Hague put say at least €6bn needs to be shaved off spending, but the total could be much higher. The cuts would come on top of the €18bn package already agreed and partly implemented.
Ministers are shocked at the sharp deterioration in the finances, now the economy is slowing down and a recession looms. One source told the paper the figures are ‘very deep red’.
Ministers are considering ‘draconian’ measures involving the labour and housing markets to realise the savings, the paper says.
Housing market
Over the past few weeks, a number of prominent cabinet supporters have said the generous Dutch system of mortgage tax relief should be reviewed and this is likely to be on the agenda. The cabinet had said it would not interfere with the system, but many pundits regard this as now inevitable.
Major cuts in unemployment benefit are another option, according to media reports.
The anti-Islam PVV, which supports the minority coalition on economic policy, has already said it will not support any more cuts unless €4bn is slashed from the development aid budget.
Last month, finance minister Jan Kees de Jager said more cuts may not be necessary until 2013.
The government’s macro-economic policy bureau is due to publish its latest forecasts on Tuesday.