BRUSSELS (MNI) – The European Commission on Monday indicated that
it expects the Netherlands to honour its fiscal commitments despite the
fall of the country’s coalition government over the weekend because of a
split over deficit cuts.

“We trust the Dutch government will continue to seek budgetary
solutions that are important for the Dutch economy and the welfare of
its citizens,” a spokesman for the Commission said.

“Commitments are made on behalf of states, not one government” he
pointed out. “Governments change, therefore policy may be adapted, but
commitments are made by governments on behalf of states and cannot be
changed without discussion with European partners. It would be the end
of the EU if commitments were not respected,” he said.

The coalition government of Prime Minister Mark Rutte fell over the
weekend after a far-right party withdrew its support for deficit cutting
measures needed to bring the Netherlands’ fiscal deficit back down to
the EU limit of 3% next year.

Commenting on budget deficit data released by EU statistics agency
Eurostat on Monday, the Commission spokesman dismissed concerns about an
apparent discrepancy between the agency’s data and that of Ireland’s.

There is a “need to finalise some aspects” the spokesman said.

In particular a planned capital injection into the nationalised
insurer Irish Life and a planned asset sale by the country’s state-owned
‘bad bank’, could not be counted by Eurostat until they are completed,
he said.

Ireland “remains on track” to meet the conditions tied to its
EU-IMF bailout and the data discrepancies “do not materially impact”
Ireland’s projected compliance, said the spokesman.

The spokesman also said that the European Commission was confident
that everything has been put in place to ensure there was no breakup
risk of the Eurozone.”

Eurozone finance ministers last month agreed to boost the currency
bloc’s crisis funds and this weekend helped to secure a large increase
in the International Monetary Fund’s lending capacity.

–Peter Koh, Brussels Correspondent, Market News +32(04)95228374
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