The Dutch government will launch a EUR6 billion stimulus package for the economy, Prime Minister Jan Peter Balkenende said Wednesday, addressing the parliament.
"The global economic crisis is putting our society under strain. We are facing a shrinking economy, rising unemployment and a widening budget deficit", Balkenende said.
The stimulus package will enable the government to invest in jobs, education, infrastructure and energy-saving and fiscal measures, the prime minister said. The package while announcing an additional EUR1.5 billion stimulus from the Dutch provinces.
He said public finances will suffer in the coming years, pointing to the latest budget deficit forecast of 5.6% of gross domestic product in 2010, from the government's planning agency CPB.
To reduce the budget deficit, the Dutch government will launch a set of cost-saving measures for 2011 and after, including a rise of the state pension age to 67 years from 65, the prime minister said.
The Dutch economy is set to shrink by 3.5% in 2009 and by 0.25% in 2010, according to data from CPB. This would be the largest contraction in the country since 1931.
Separately, Balkenende told parliament that a "change of culture" is needed within the financial sector.
He added that the government aims to strengthen financial supervision, also on an international level, and promised "appropriate measures" for bonus structures at financial institutions that have received state-aid.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment