Brussels upbeat on Dutch economy, deficit

The European Commission is more optimistic about the Dutch economy than it was earlier this year. The budget deficit for this year is coming out at 2.8 percent, under the European norm of 3 percent.  A stronger growth in the economy is also expected, with 1.2 percent. This is from the newest estimates from the European Commission in Belgium about the development in European Union (EU) member states. The last approximations pinned the Netherlands down at a budget deficit of 3.2 percent, and growth was only expected at 1 percent. Last year, the economy still deflated with 0.8 percent. Next year's economic growth is predicted to rise to 1.4 percent. According to the Commission, stimulants for this growth will no longer be investments, but a rise in consumer spending. This is visible by the higher spendable incomes for citizens and the recovery of the housing market. The European Commission does warn that this is not the time to loose the reigns on the economy. These estimates are based on the unabbreviated execution of the agreed cuts and reforms. The Netherlands will push its budget deficit down to 1.8 percent, which should be a healthier than the rest of the Eurozone. Simm Kallas, European Commissioner and temporary deputy of Olli Rehn, says that the economic recovery in the Eurozone is approaching a 'steady norm'. Brussels seems more optimistic in general, but Dutch growth remains behind that of other European countries. The commission is expecting growth of 1.2 percent this year, and 1.7 percent next year for the entire Eurozone. Figures from the Bureau for Economic Policy Analysis (CPB) predicted in March that the Netherlands to conform to the Brussels norm of 3 percent this year. The CPB is now expecting a deficit of 2.9 percent, which will drop further down to 2.1 percent in 2015. Unemployment remains high in the Eurozone, 11.8 percent in 2014, but will go on a slight decline next year to 11.4 percent, according to the predictions. For the Netherlands, the Commission is predicting Dutch unemployment rate to be 7.3 percent, a little bit higher than the 7 percent predicted by the CPB.