The central message in the government’s 2012 budget is that a new economic crisis is eminent and many difficult and uncertain years are ahead of us, the government warns. Next year inflation will remain around 2% and almost everyone will be affected by cutbacks.

Finance minister De Jager states that the effects of the previous economic crisis were almost entirely absorbed by the government and industry and the man in the street was not affected. However, those days are over, said the finance minister. The state debt has soared, spending on healthcare is booming and the new eurozone crisis threatens the treasury again.

Minister De Jager said, ‘The buffers have gone. We cannot continue to pass the bill on to the next generations.’ Analysts believe that middle income class will feel the cuts most, as child, housing and healthcare benefits are cut, and there is less money available for child care. Healthcare premiums will also rise next year, as agreed in the coalition deal.

In total the government plans to make €5.8bn-worth of spending cuts and savings next year, while spending will go up by around €1bn. New cuts will be inevitable if the Greece crisis continues, De Jager said.