Dutch escape EC ire over budget breach

18th May 2005, Comments 0 comments

18 May 2005, AMSTERDAM — The European Commission (EC) wants to abandon legal proceedings against the Netherlands for its budgetary breaches in 2003 and has praised the nation's rapid turnaround.

18 May 2005

AMSTERDAM — The European Commission (EC) wants to abandon legal proceedings against the Netherlands for its budgetary breaches in 2003 and has praised the nation's rapid turnaround.

The EC launched legal proceedings after the Dutch budget blew out to 3.2 percent of national income in 2003.

This breached the 3 percent maximum imposed by the Growth and Stability Pact agreed on by the eurozone nations.

But the commission wants to drop the proceedings against the Dutch government because the budget has been significantly reduced.

Due to stringent budget cuts, the deficit fell to 2.3 percent in 2004, well under the maximum imposed by the stability pact.

European Monetary Affairs Commissioner Joaquin Almunia praised the Cabinet's policy on Wednesday.

"From the Dutch example it appears that a vigorous approach to budgetary consolidation can lead to quick and sustainable results," he said.

[Copyright Expatica News 2005]

Subject: Dutch news

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