Brussels urges the Netherlands to spend less again

Nov 28, 2025 - 17:00
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Brussels urges the Netherlands to spend less again

STRASBOURG – The expenditures are threatening to exceed the agreed ceiling. The Commission calls on the Netherlands to take action,” said an official from the European Commission in an explanation.

According to the Commission’s autumn forecast, the net expenditures of the Netherlands are expected to rise by 7.3 percent this year. This is significantly higher than the recommended maximum increase of 3.5 percent. In 2026, net expenditures are also expected to rise by 4.5 percent, while the member states have agreed on a maximum growth of 3.3 percent.

The rising deficit is primarily caused, according to the European Commission, by a one-time transfer of military pension obligations from the government budget to a private pension fund.

However, this is a one-time event. The high expenditures for healthcare and social security are particularly putting significant pressure on government spending over the long term, says an official from the Commission.

The same applies to defense spending. This increased for the Netherlands from 1.6 percent of the size of the economy in 2024 to 1.7 percent this year. In 2026, it will be 1.8 percent.

The European Commission includes the additional defense expenditures of the Netherlands in the calculation of government spending. The Commission does not do this for the sixteen EU countries that are using the national escape clause. This arrangement applies for four years and for a maximum of 1.5 percent of the size of the economy.

(November 25, 2025)