The five-party agreement aimed at reducing the Dutch budget deficit to below 3% represents extra tax income and spending cuts to the tune of €16bn, the Telegraaf reports on Thursday.

Corrected for the effect of the measures on consumer and industrial confidence, the austerity package will generate €12.2bn for the treasury, according to leaked documents obtained by the paper. The five parties have also agreed €1bn in extra spending.
Although many of the measures were already known, the leak confirms patients will face a €350 ‘own-risk’ charge on their health insurance plus a €7.50 a day fee for hospital stays.
Spending power
The effect of the package on spending power will be around 2% on average, although wealthy pensioners will be harder hit. Families on average incomes will have 1% less to spend.
The government’s macro-economic forecasting agency is currently analysing the plans to assess their effect on the government’s finances and see if they will succeed in cutting the budget deficit to within eurozone limits.
The three minor parties – D66, GroenLinks and ChristenUnie – agreed to work with the minority coalition to draw up austerity measures after Geert Wilders’ PVV pulled out of the talks last month.
Election
The Netherlands is holding a general election in September and a new line-up of MPs will decide how many of the measures agreed by the five-party coalition will actually come into effect.
According to the latest opinion polls, the five parties are not on target to command a majority in parliament.
The main measures at a glance
Taxation: