The Netherlands must stick to a plan to cut its budget deficit to 3.0 per cent of GDP in 2013, the European commissioner for economic and monetary affairs said, emphasising that it was wrong to think EU budget rules could be relaxed.
"It is essential for the sake of confidence in the Dutch economy that the country pursues its fiscal consolidation efforts with determination", Olli Rehn said in a statement. "Rumours of a relaxation of the rules of the stability and growth pact are unfounded."
There have been reports in the Dutch media that the country might seek to have the target for 2013 softened, amid a push across the eurozone for growth-focused policies to be emphasised over austerity and budget cuts.
The Dutch government struck a last-minute deal last month to make extra spending cuts and other measures to meet its 2013 deficit target. Rehn said that deal needed to be upheld. "Last month's budgetary agreement includes permanent measures and structural reforms that are important for the sustainability of Dutch public finances, and it needs to be implemented", he said. "This is in line with the stability and growth pact, which underlines the structural sustainability of public finances in the medium term."
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