The global crisis led the Netherlands into deep recession, despite a decisive government intervention to support the financial sector and a timely fiscal stimulus. The increase in unemployment was surprisingly limited, reflecting, among other factors, a severe pre-crisis overheating of the labour market. Growth recommenced in mid-2009. Looking ahead, the recovery is expected to gather pace relatively slowly. In this context, the main challenges for the government coming in after the June 2010 general election are to exit from stimulus policies and to boost potential growth in an ageing society. 1. The planned fiscal consolidation is a step in the right direction to secure fiscal sustainability. 2. The financial crisis and increased longevity are threatening the solvency of the second-pillar pension system. The fall in the funding ratios of the pension funds for the second time in this decade required the widespread implementation of recovery plans, mostly relying on suspending indexation of pensions and accrued pension rights. In the longer term, only longer working lives in combination with a mix of higher contribution rates and lower real pensions and pension rights can secure promised pension replacement rates. To avoid abrupt recovery measures in the future, regulation should be less sensitive to short-term developments, for example by using more stable discount rates. In addition, there is a need to improve corporate governance and make investment strategies more transparent. 3. For several decades road traffic has increased faster than the expansion of the road network, leading to widespread congestion. 4. The housing market is characterised by numerous rigidities, which may hamper geographical labour mobility. Bron: rapport; bewerking RWI
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