Dutch purchasing power set to fall for years

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A new study predicts purchasing power to fall by an average of 0.25 percent in 2010.

The Netherlands - The Macro Economic Study (MEV), which together with the budget is due to be officially released on 15 September, says the Dutch can expect years of decreased purchasing power from 2010. The document has been leaked by the RTL News channel.
This year and in 2010, purchasing power is forecast to fall by an average of 0.25 percent. However, the MEV says that as unemployment rises, people lose their bonuses and their capital is worth less, the fall in purchasing power could exceed expectations.
The budget has also been leaked, and shows that cuts are on the way in health, education and social affairs. Health Minister Ab Klink will be making savings in accident and emergency services, with family doctors taking over some areas of treatment.
Student grants will be held at the same level for the next two years by Education minister Ronald Plasterk. Social Affairs Minister Piet Hein Donner will be making EUR 400 million worth of cuts in services including work reintegration projects. The cuts are necessary because the three government departments have spent more than expected.

Radio Netherlands / Expatica

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