Long crisis could cost Dutch local councils billions of euros

A long-lasting economic crisis could cost the Netherlands’ major cities billions of euros, according to an analysis of the financial situation facing Amsterdam, Rotterdam, Eindhoven and The Hague by research group SEO.

The analysis, involving various crisis situations, was requested by the city authorities.
‘Amsterdam would be very sensitive to a property crisis but in Rotterdam, a socio-economic crisis will have the most serious consquences,’ SEO director Jules Theeuwes told website nu.nl.
Financial crisis
The organisation says a new financial crisis will hit Rotterdam the hardest. The port city will be faced with a budget shortfall of up to €90.5m within five years. Amsterdam will have to find €82.5m.
But The Hague will be less affected, with a shortfall of €32.5m while Eindhoven will escape relatively unscathed with a €3.5m spending gap.
If the situation worsens and becomes a full blown socio-economic crisis with soaring unemployment, Rotterdam will have to find an extra €252m to keep its budget intact, while Amsterdam will face a €230m spending shortfall.
A collapse in housing prices and property development will cost Amsterdam €413m but in Rotterdam, the damage would be limited to €97m.
‘It is good to know what position we are in so we can make preparations,’ Stef Depla, of Eindhoven city council, told nu.nl.

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