Opposition MPs have described yesterday’s new central bank forecasts as shocking and that they show the government is on the wrong foot, Nos television reports.

The central bank said the government may have to implement an austerity package to raise up to €8bn and warned against further tax increases because of the impact on consumer spending.

The figures show a ‘drastic worsening’ of the Netherlands’ financial position, said Christian Democrat MP Eddy van Hijum. ‘The prime minister’s pep talk telling us to “buy a car, buy a house” has not worked,’ Van Hijum said.

Earlier this year, the government agreed to shelve a €4.3bn austerity package in the hope this would boost consumer spending. That position is to be reconsidered in August when the government’s macro-economic think-tank CPB publishes its latest forecasts.

The CPB will publish intermediary forecasts on Friday.