Netherlands

Austerity budget passed


Published

Just four days after the government collapsed because Geert Wilder’s Party for Freedom (PVV) walked out of austerity budget negotiations, Prime Minister Mark Rutte has been able to pass a revised budget.

Between Monday and Thursday Rutte’s People’s Party for Freedom and Democracy (VVD) was able to negotiate with the Democrats 66 (D66), Green Left (GL) and Christian Union (CU). The existing coalition partner, the Christian Democratic Appeal (CDA) were also involved.

The three parties are believed to have secured some additional measures, but the vote was taken on the slightly revised austerity budget and was passed with 77 votes in the 150 seat House of Representatives. This means that the caretaker government will be able to meet the EU requirements of a cut in the budget deficit to 3% and should also hold off the ratings agencies from downgrading the country.

An election will still be held on 12th September 2012.

Tagged with:

More detailed briefing on the politics and risk of doing business in this country is available to clients and subscribers. If you would like to know more then please contact enquiries@tradebridgeconsultants.com