Antilles debt influence Dutch
economic growth negatively
BRUSSELS--The European Committee expects the European economy to continue showing a strong growth. The fact that the Dutch Government will take over a major part of the Antillean debt is calculated to have a negative effect of 0.1 per cent on the economic growth.
The economic growth of the European Union has been projected at 2.9 per cent while the growth for the 13 countries with the euro as currency has been projected at 2.6 per cent. The growth for 2008 has been projected at 2.7 and 2.5, the European Committee announced on Monday.
Due to the growth, about 9 million jobs will be created and the unemployment rate in Europe will drop to less than seven per cent in 2008. Two years ago the unemployment rate was approximately nine per cent.
The coffers of EU countries will profit from this economic boom as the average debt will decrease to a historic low of one per cent of the economy.
The Netherlands will also profit from the strong economic outlook, despite its redemption of the Netherlands Antilles debt. The growth of the Dutch economy is projected at 2.6 per cent and if the Dutch government implement certain measures, it could even be as high as 2.8 per cent.
On the other hand, the Dutch government will probably be reprimanded for increased budgetary deficit in times of economic growth. The budgetary surplus of 2007 will make way for a 0.7 per cent deficit in 2007, caused by lower revenues from gas production.
St Maarten vacation rental
