The Netherlands Bureau for Economic Policy Analysis (Centraal Planbureau) says in an analysis that the Dutch government must cut spending by 29 billion euros over the next four years to reduce the budget deficit. This is six billion less than the 35 billion announced by the government last autumn. 

The economy is forecast to grow by 1.5 percent this year and two percent next year, with buying power predicted to scarcely rise and even to fall.

Departing Finance Minister Jan Kees de Jager says the government is still overspending and needs to tighten the purse strings. His party, the Christian Democrats, also considers heavy cuts to be a must.

The Socialist Party wants to restrict cuts to 10 billion euros, while the conservative VVD would allow cutbacks of more than 29 billion. Geert Wilders' right-wing PVV is eager to slash what the party calls left-wing hobbies such as Development Cooperation, the European Union and the Civil Service.

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