
Dutch prime minister Mark Rutte has taken a hard line in Brussels on the conditions of coronavirus aid to Southern Europe, but at home his government has abandoned austerity without controversy.
During the last economic crisis, Rutte, who has led the liberal People’s Party for Freedom and Democracy since 2006, raised taxes and cut public spending to keep the Netherlands’ budget deficit under the EU’s 3-percent ceiling.
Now, when the economic contraction caused by COVID-19 is even more severe, he is borrowing €56 billion, or 7.2 percent of GDP. Debt as a share of economic output is projected to rise from 49 to 61 percent.
Statism is back in a country that is (or used to be) considered a champion of liberalization and free trade.
Rutte’s competitors spy an opportunity. Read more “Dutch Parties Take Risk Attacking Liberalism”