The Dutch government is taking another important step toward sustainable economic growth. Efforts to bring about robust public finances and a fair distribution of income are an inseparable part of this process.

This is the main message of the Budget Memorandum that Minister of Finance Jeroen Dijsselbloem presented to the House of Representatives on Prinsjesdag (Prince’s Day) today.

The Netherlands is still a rich and prosperous country. Nevertheless, the financial crisis has exposed substantial vulnerabilities – in Europe, in the financial sector and in the Dutch economy.

Years of high economic growth in the Netherlands were accompanied by the accumulation of debts by individual citizens and banks.

“This is part of the reason why individuals, businesses and banks are now confronted with the need to strengthen their balance sheets,” said Mr. Dijsselbloem at the presentation of the Budget Memorandum to the House of Representatives. “This kind of balance sheet crisis results in slower economic recovery than expected.”

With an extensive package of reforms in the areas of health care, the housing market and pensions, the government is working toward sustainable economic growth.

The national debt has risen sharply over a short period of time. Since the beginning of the crisis, the debt has increased by €150 billion as a direct consequence of successive budget deficits. Intervention is needed to avoid leaving future generations with a large bill.

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Dutch Daily News