There is a strong chance that the war in Iran will carry on, prompting Prime Minister Rob Jetten to warn that the country’s economic outlook could get worse. Speaking at his weekly press conference, the Prime Minister promised that the Cabinet would look at ways to protect and support Dutch household incomes if the situation deteriorates. He noted that the public’s spending power heavily depends on whether the conflict between the United States, Israel, and Iran ends. While there are signs that a peace deal could be signed this weekend, Jetten remained doubtful, admitting he has lost count of how many times a deal has been announced only to fall through at the last minute.
The ongoing conflict is also expected to push the Dutch budget deficit up to 3.3 per cent this year, according to the central bank. Jetten called this unacceptable, as he wants the government to stay below the 3 per cent limit set by the European Union. He explained that the government has several options to bring the deficit down, such as raising taxes, cutting spending, or delaying investments. However, the Cabinet will wait until August to look at the official financial figures before deciding if these steps are necessary. They will then finalise the 2027 budget this summer, ready to present it officially in September.
@anp | NEWS BRAINPORT
