topics
tools
editor's choice

Lost in Cheeseland: How to become an expat in France

Top myths about Paris

Is an international MBA the right degree for you?

Childcare in France

Relocation programmes remain small, focused and consistent

Expatica countries
Index Last Var.(%)
BEL 20 2234.42 -1.59
DAX 6668.82 -1.77
IBEX 30 8773 -1.45
CAC 40 3376.88 -1.40
FTSE 100 5842.53 -0.90
AEX 319.73 -1.66
DJIA 12756.65 -1.04
Nasdaq 2895.78 -1.07
FTSE MIB 16408.86 -1.47
TSX Composite 12338.86 -1.27
ASX 4322.6 -0.79
Hang seng 20783.86 -1.08
Straits Times 2960 -0.71
ISEQ 20 501.02 -0.53
You are here: Home Finance & Business Banking Praise for Dutch economy during crisis talks

Banking

archive
Enlarge font Decrease font Text size


17/03/2009Praise for Dutch economy during crisis talks

Praise for Dutch economy during crisis talks Surprisingly, for a country in full-blown recession, the Netherlands is receiving praise for its economic performance. Are we already on the way out of the crisis, or are we just getting an encouraging pat on the back?

In the EU's ranking of countries meeting the so-called Lisbon targets, the Netherlands jumped from sixth to third place, just below Poland and list leader Finland, Bloomberg reported on Monday.

The Lisbon ranking is based on indicators such as economic and productivity growth, employment, investment and public finances.

In 2000, the EU member states agreed in Lisbon to try and become the most competitive knowledge economy in the world by 2010.

Generosity
The Netherlands is also third on a different list, drawn up by the International Money Fund, writes Dutch daily De Pers. This shows the Netherlands ranked as the third most generous country, having provided government guarantees for bank loans and deposits which amount to 33 percent of its Gross National Product (i.e. more than  200 billion euros). Ireland and Sweden are ranked one and two, respectively. However, the IMF says this generosity could potentially cost the Dutch a great deal in the years to come, hence - as De Pers notes - it's not without risk.

The cost of these guarantees can rise to over 100 billion euros - a substantial dent in the national budget. So far, Bos' daredevil measures appear not to have damaged the international creditworthiness of The Netherlands, since the capital market continues to loan the country vast amounts at normal interest rates. A sure sign of confidence, according to De Pers.

'Finest hour'
Photo: Prime Minister Balkenende and Finance Minister BosBut it is by no means certain that good scores in such lists provide the Dutch with any guarantee of recovery. Global indicators still indicate that the world economy will show minimal growth, if at all, in 2009.

Economy Professor Jan Luiten van Zanden wrote in NRC Handelsblad last week that Finance Minister Bos and Prime Minister Jan Peter Balkenende may have had their "finest hour" when they saved the Netherlands' major banks. The entire country was behind them. Photo above right: Prime Minister Balkenende (l) and Finance Minister Bos (r) may have had their "finest hour".

This week though, ministers of the three-party coalition are engaged in difficult talks to weather the long-term fallout of the crisis. Judging by what the spokespersons say, opinions within the cabinet are divided.

It's either stimulating the economy by increasing investments (the Labour view), or making deep cuts to save on expenditure (favoured by the Christian Democrats), but whatever is decided, acting quickly and decisively matters most (the small Christian Union's point). It will at least be a week before any results become clear, observers say.

Rob Kievit
Radio Netherlands

rnw





0 reactions to this article

Be the first person to add a comment

General rating: Not rated yet

Rate article:    Add my rating


0 reactions to this article

Be the first person to add a comment
Discussion Forums

Jobs in France

IFAs / FSIs / Country Managers / Confidential Introducers

Immigration and Legal Problems

Blocked Sewer Line outside property boundary - who pays ?

Sporting Events in France

Counter Strike!

Community Noticeboard France | Expat Events

migration to belgium!

Americans in France

Expatriate Events in Paris

participate in the forums

Finance essentials
Finance expert Q&A
ask your question
Finance A-Z listings
find the business you need
Inside Expatica
Management culture in France

Management culture in France

This handy guide from Expertise in Labour Mobility includes information on business hierarchy, negotiations, and etiquette.

American associations and clubs in Paris

American associations and clubs in Paris

A listing of organizations in the Paris area that cater primarily to Americans living in France. Updated April 2011.

British associations and clubs in Paris

British associations and clubs in Paris

Our handy guide to the British community in Paris, from cricket clubs to Scottish country dancing lessons to where to find a jar of Marmite.

Anglophone services in France

Anglophone services in France

Here's a short introduction to our Banking section for those living in France, from how to open a bank account to Islamic banking and investments.