Budget Madness in The Netherlands

This article describes the budget situation in The Netherlands.  A new coalition has been found to support cuts in government spending.  The cuts will occur in a weak economy.  They are likely to reduce aggregate demand during a period of declining demand.  The goal is bring The Netherlands budget deficit as a percent of GDP to 3% by 2013.  This will bring The Netherlands into conformance with the EU budget requirements.  This is intended to reinforce the fiscal policy guidelines against encroachment by those who view the French and Greek elections as a signal to weaken austerity measures.