On his return home from major euro crisis talks in Brussels, Dutch Prime Minister Mark Rutte has to face the daunting task of balancing his own country's books. His conservative VVD and smaller Christian Democrats coalition partner are preparing measures to tackle an unexpected extra budget deficit of at least five billion euros.

The Netherlands Bureau for Economic Policy Analysis will present the government with the new economic forecasts next Tuesday. The government will then announce the extent of the new cutbacks, which come on top of an 18-billion-euro austerity package implemented this year.

The ruling minority coalition is dependent on parliamentary support from Geert Wilders’ Freedom Party (PVV) on most issues. The PVV supported the austerity package but said it would almost certainly not back any further cuts.

Dutch newspaper De Telegraaf reports that new cutbacks could even be in the region of ten billion euros. It’s reported that the financial state of many local government bodies is alarmingly unhealthy, now that the country has been hit by a new, deepening recession.

Sources near the government say that draconian cuts can be expected in the housing and job market sectors.

(jn/mw)

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