Recommendation for a COUNCIL RECOMMENDATION on the 2020 National Reform Programme of the Netherlands and delivering a Council opinion on the 2020 Stability Programme of the Netherlands
Date: 2020-05-20
Institutions: European Commission, Secretariat-General
Subjects: Netherlands, economic policy, economic recovery, epidemic, fiscal policy, health policy, infectious disease, investment, stability pact, stability programme

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   EUROPEAN COMMISSION  Brussels, 20.5.2020  COM(2020) 519 final  Recommendation for a COUNCIL RECOMMENDATION on the 2020 National Reform Programme of the Netherlands and delivering a Council opinion on the 2020 Stability Programme of the Netherlands  
 
Recommendation for a 

COUNCIL RECOMMENDATION 

on the 2020 National Reform Programme of the Netherlands and delivering a Council 
opinion on the 2020 Stability Programme of the Netherlands 

THE COUNCIL OF THE EUROPEAN UNION, 

Having  regard  to  the  Treaty  on  the  Functioning  of  the  European  Union,  and  in  particular 
Articles 121(2) and 148(4) thereof, 

Having regard to Council Regulation (EC) No 1466/97 of 7 July 1997 on the strengthening of 
the  surveillance  of  budgetary  positions  and  the  surveillance  and  coordination  of  economic 
policies1, and in particular Article 5(2) thereof, 

Having  regard  to  Regulation  (EU)  No  1176/2011  of  the  European  Parliament  and  of  the 
Council  of  16  November  2011  on  the  prevention  and  correction  of  macroeconomic 
imbalances2, and in particular Article 6(1) thereof,  

Having regard to the recommendation of the European Commission, 

Having regard to the resolutions of the European Parliament, 

Having regard to the conclusions of the European Council, 

Having regard to the opinion of the Employment Committee, 

Having regard to the opinion of the Economic and Financial Committee, 

Having regard to the opinion of the Social Protection Committee, 

Having regard to the opinion of the Economic Policy Committee, 

Whereas: 

(1) 

(2) 

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On  17  December  2019,  the  Commission  adopted  the  Annual  Sustainable  Growth 
Strategy,  marking  the  start  of  the  2020  European  Semester  for  economic  policy 
coordination. It took due account of the European Pillar of Social Rights, proclaimed 
by the European Parliament, the Council and the Commission on 17 November 2017. 
On  17  December  2019,  on  the  basis  of  Regulation  (EU)  No  1176/2011,  the 
Commission  also  adopted  the  Alert  Mechanism  Report,  in  which  it  identified  the 
Netherlands  as  one  of  the  Member  States  for  which  an  in-depth  review  would  be 
carried out. On the same date, the Commission also adopted a recommendation for a 
Council recommendation on the economic policy of the euro area. 
The 2020 country report for the Netherlands3 was published on 26 February 2020. It 
country-specific 
assessed 

the  Netherland’s 

addressing 

progress 

the 

in 

OJ L 209, 2.8.1997, p. 1. 
OJ L 306, 23.11.2011, p. 25. 
SWD(2020) 518 final. 

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(3) 

(4) 

(5) 

recommendations adopted by the Council on 9 July 20194, the follow-up given to the 
recommendations adopted in previous years and the Netherlands progress towards its 
national  Europe  2020  targets.  It  also  included  an  in-depth  review  under  Article  5  of 
Regulation  (EU)  No  1176/2011,  the  results  of  which  were  also  published  on  26 
February 2020. The Commission’s analysis led it to conclude that the Netherlands is 
experiencing macroeconomic imbalances. In particular, the high stock of private debt 
and the large current account surplus are sources of imbalances and have cross-border 
relevance.  

On 11 March 2020, the World Health Organization officially declared the COVID-19 
outbreak  a  global  pandemic.  It  is  a  severe  public  health  emergency  for  citizens, 
societies  and  economies.  It  is  putting  national  health  systems  under  severe  strain, 
disrupting  global  supply  chains,  causing  volatility  in  financial  markets,  triggering 
consumer  demand  shocks  and  having  negative  effects  across  various  sectors.  It  is 
threatening  people’s  jobs,  their  incomes  and  companies’  business.  It  has  delivered  a 
major  economic  shock  that  is  already  having  serious  repercussions  in  the  European 
Union. On 13 March 2020, the Commission adopted a Communication5 calling for a 
coordinated economic response to the crisis, involving all actors at national and Union 
level. 

Several  Member States have declared a state of  emergency or introduced emergency 
measures.  Any  emergency  measures  should  be  strictly  proportionate,  necessary, 
limited in time, and in line with European and international standards. They should be 
subject to democratic oversight and independent judicial review. 

On  20  March  2020,  the  Commission  adopted  a  Communication  on  the  activation  of 
the general escape clause of the Stability and Growth Pact6. The clause, as set out in 
Articles 5(1), 6(3), 9(1) and 10(3) of Regulation  (EC)  1466/97 and Articles 3(5) and 
5(2) of Regulation (EC) 1467/97, facilitates the coordination of budgetary policies in 
times  of  severe  economic  downturn.  In  its  Communication,  the  Commission  shared 
with the Council its view that, given the expected severe economic downturn resulting 
from  the COVID-19 outbreak, the  current  conditions  permit  activation of the clause. 
On  23  March  2020,  the  Ministers  of  Finance  of  the  Member  States  agreed  with  the 
assessment of the Commission. The activation of the general escape clause allows for 
a temporary departure from the adjustment path  towards the medium-term budgetary 
objective,  provided  that  this  does  not  endanger  fiscal  sustainability  in  the  medium 
term. For the corrective arm, the Council may also decide, on a recommendation from 
the Commission,  to  adopt  a revised  fiscal  trajectory. The  general  escape  clause does 
not suspend the procedures of the Stability and Growth Pact. It allows Member States 
to depart from the budgetary requirements that would normally apply while  enabling 
the  Commission  and  the  Council  to  undertake  the  necessary  policy  coordination 
measures within the framework of the Pact. 

(6) 

Continued  action  is  required  to  limit  and  control  the  spread  of  the  pandemic, 
strengthen  the  resilience  of  the  national  health  systems,  mitigate  the  socio-economic 
consequences through supportive measures for business and households and to ensure 
adequate  health  and  safety  conditions  at  the  workplace  with  a  view  to  resuming 
economic  activity.  The  Union  should  fully  use  the  various  tools  at  its  disposal  to 
support  Member  States’  efforts  in  those  areas.  In  parallel,  Member  States  and  the 

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OJ C 301, 5.9.2019, p. 117. 
COM(2020) 112 final. 
COM(2020) 123 final. 

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(7) 

(8) 

Union should work together to prepare the measures necessary to get back to a normal 
functioning of our societies and economies and to sustainable growth, integrating inter 
alia  the  green  transition  and  the  digital  transformation,  and  drawing  all  lessons  from 
the crisis. 

The  COVID-19  crisis  has  highlighted  the  flexibility  that  the  single  market  offers  to 
adapt  to  extraordinary  situations.  However,  in  order  to  ensure  a  swift  and  smooth 
transition to the recovery phase and the free movement of goods, services and workers, 
exceptional  measures that prevent  the single market  from  functioning  normally must 
be removed as soon as they are no longer indispensable. The current crisis has shown 
the need for crisis preparedness plans in the health sector, which include in particular 
improved  purchasing  strategies,  diversified  supply  chains  and  strategic  reserves  of 
essential  supplies.  They  are  key  elements  for  developing  broader  crisis  preparedness 
plans. 
The  Union  legislator  has  already  amended  the  relevant  legislative  frameworks7  to 
allow  Member  States  to  mobilise  all  unused  resources  from  the  European  Structural 
and  Investment  Funds  so  they  can  address  the  exceptional  effects  of  the  COVID-19 
pandemic. Those amendments will provide additional flexibility, as well as simplified 
and streamlined procedures. To alleviate cash flow pressures, Member States can also 
benefit  from  a  100%  co-financing  rate  from  the  Union  budget  in  the  2020-2021 
accounting year. the Netherlands is encouraged to make full use of those possibilities 
to help the individuals and sectors most affected by the challenges. 

(9) 

On  28  April  2020,  the  Netherlands  submitted  its  2020  National  Reform  Programme 
and, on 29 April 2020, its 2020 Stability Programme. In order to take account of their 
interlinkages, the two programmes have been assessed at the same time. 

(10)  The  Netherlands  is  currently  in  the  preventive  arm  of  the  Stability  and  Growth  Pact 

and subject to the debt rule.  

(11) 

In  its  2020  Stability  Programme,  the  government  plans  the  headline  balance  to 
deteriorate from a surplus of 1,7 % of GDP in 2019 to a surplus of 0,1 % of GDP in 
2020. The surplus is projected to decline to 0,0% of GDP in 2023. After decreasing to 
48,6%  of  GDP  in  2019,  the  general  government  debt-to-GDP  ratio  is  expected  to 
decrease  further  to  46,3%  in  2020  according  to  the  2020  Stability  Programme. 
However,  the  macroeconomic  scenario  underpinning  those  budgetary  projections  no 
longer  appears  realistic  and  the  Programme  does  not  take  into  account  a  significant 
number of the measures announced by the Netherlands in response to the COVID-19 
pandemic.  The  Spring  Budget  Memorandum8  contains  an  update  of  the  budgetary 
projections. Based on the Memorandum, the government headline balance is planned 
to deteriorate to a deficit of 11,8 % of GDP in 2020 and the general government debt-

7 
Regulation (EU) 2020/460 of the European Parliament and of the Council of 30 March 2020 amending 
Regulations  (EU)  No  1301/2013,  (EU)  No  1303/2013  and  (EU)  No  508/2014  as  regards  specific  measures  to 
mobilise  investments  in  the  healthcare  systems  of  Member  States  and  in  other  sectors  of  their  economies  in 
response to the COVID-19 outbreak (Coronavirus Response Investment Initiative) (OJ L 99, 31.3.2020, p. 5) and 
Regulation  (EU)  2020/558  of  the  European  Parliament  and  of  the  Council  of  23  April  2020  amending 
Regulations  (EU)  No  1301/2013  and  (EU)  No  1303/2013 as  regards  specific  measures  to  provide  exceptional 
flexibility for the use of the European Structural and Investments Funds in response to the COVID-19 outbreak 
(OJ L 130, 24.4.2020, p. 1). 
8 
Hoekstra, Minister of Finance, on 25 April 2020. 

Budget  Memorandum  2020  (Voorjaarsnota  2020),  handed  in  for  review  to  the  2nd  Chamber  by  F. 

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(12) 

to-GDP ratio is expected to increase to 65,2% in 2020. The macroeconomic and fiscal 
outlook is affected by high uncertainty due to the COVID-19 pandemic.    

In response to the COVID-19 pandemic, and as part of a coordinated Union approach, 
the Netherlands has adopted budgetary measures to increase the capacity of its health 
system, contain the pandemic, and provide relief to those individuals and sectors that 
have  been  particularly  affected.  According  to  the  2020  Stability  Programme  and  the 
Spring Budget Memorandum, those budgetary measures amount to 2,7% of GDP. The 
measures  include  strengthening  health  care  services,  emergency  aid  for  distressed 
sectors, income support to self-employed and employees. In addition, the Netherlands 
has  announced  measures  that,  while  not  having  a  direct  budgetary  impact,  will 
contribute to support liquidity to businesses. Those measures include tax deferrals for 
corporate income taxes (4,6% to 5,9% of GDP) and loan guarantees (1,8% of GDP). 
Overall, the measures taken by the Netherlands are in line with the guidelines set out 
in  the  Commission  Communication  on  a  coordinated  economic  response  to  the 
COVID-19  outbreak.  The  full  implementation  of  those  measures,  followed  by  a 
refocusing of  fiscal  policies towards achieving prudent  medium-term fiscal  positions 
when economic conditions allow, will contribute to preserving fiscal sustainability in 
the medium term. 

(13)  Based  on  the  Commission  2020  spring  forecast  under  unchanged  policies,  the 
Netherland’s general government budget balance is forecast at -6,3% of GDP in 2020 
and -3,5% in 2021. The difference of 5,5 percentage points between the Spring Budget 
Memorandum forecast and that of the Commission is driven by a different accounting 
of the tax deferrals (4,6% to 5,9% of GDP), which in the Commission forecast are not 
booked as revenue-decreasing in 2020. General government debt is projected to reach 
62,1% of GDP in 2020 and 57,6% in 2021.  

(14)  On 20 May 2020, the Commission issued a report prepared in accordance with Article 
126(3) of the Treaty due to the Netherlands’ projected breach of the 3% of GDP deficit 
threshold in 2020. Overall, the analysis suggests that the deficit criterion as defined in 
the Treaty and in Regulation (EC) No 1467/1997 is not fulfilled. 

(15)  After robust growth in recent years, the COVID-19 pandemic has put an abrupt end to 
six consecutive years of economic expansion in the Netherlands. This year, the Dutch 
economy is set to experience its sharpest contraction in the country’s post-war history. 
All demand components, except public consumption, are expected to decline sharply 
this year, with a projected trough in economic activity in the second quarter. In 2021, 
the economy will likely rebound at a rate well above trend growth, reflecting a gradual 
normalisation  of  economic  activity  and  the  recovery  of  domestic  demand  and  global 
trade  from  a  depressed  level.  However  activity  levels  are  expected  to  remain  below 
those  of  2019.  According  to  the  Commission  forecast,  unemployment  is  expected  to 
increase  to  5,9%  in  2020,  mainly  due  to  mandated  business  closures  and  the  abrupt 
overall decline in economic activity but then to recover to 5,3% in 2021. Employment 
protection  measures,  in  particular  the  Temporary  Emergency  Bridging  Measure  for 
Sustained  Employment  and  additional  income  support  for  the  self-employed,  should 
help dampen employment losses. Nevertheless, the deterioration of the labour market 
is  expected  to  accelerate  in  the  coming  months  as  firms  in  heavily  affected  sectors 
inevitably shed labour, especially workers with flexible and temporary contracts.  

(16) 

. In response to the abrupt economic fallout and the evaporation of demand in specific 
sectors,  the  Dutch  government  has  adopted  a  comprehensive  package  of  emergency 
measures to help avoid structural damage to the economy. This strong policy response 

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is aimed at the areas most affected by the crisis and focuses on employment protection 
and  household  purchasing  power,  direct  financial  compensation  for  severely  hit 
industries, as well as tax deferral and loan guarantees to support the flow of credit to 
the private sector. It should  thus prevent temporary liquidity problems from morphing 
into  insolvency  issues.  Furthermore,  automatic  stabilisers  should  help  dampen  the 
depth  of  the  downturn.  The  Dutch  central  bank  has  also  reduced  systemic  capital 
buffers  for  the  largest  banks  and  is  postponing  a  measure  to  introduce  a  risk  weight 
floor for mortgages, thus freeing up bank  capital  and enabling banks to  significantly 
expand lending to households and businesses.  

(17)  The Dutch health system is performing comparatively well in terms of contributing to 
the  overall  health  of  the  population  and  ensuring  the  accessibility  of  health  services. 
As part of the immediate response to the crisis, the Netherlands put in place a control 
strategy  involving  general  public  health  measures  and  adopted  tailored  health 
financing measures. Nevertheless, the onset of the COVID-19 has tested the resilience 
of the health system.  In this regard pre-existing concerns have come to the fore. The 
capacity of the workforce would benefit from tackling existing shortages, in particular 
of nurses and in primary healthcare. The overall governance of the health systems and 
their capacity to ensure integrated service delivery across the care continuum could be 
improved by further strengthening data governance and scaling up the deployment of 
eHealth tools. The COVID-19 outbreak has therefore highlighted the need to continue 
to  improve  the  resilience  and  the  crisis  preparedness  of  the  health  system  by 
addressing such structural challenges. 

(18)  While  in  2019  and  in  early  2020  the  labour  market  continued  to  improve  and 
performed  well  overall,  the  COVID-19  crisis  has  reduced  economic  growth  and  is 
expected  to  lead  to  a  considerable  increase  in  unemployment.  A  series  of 
unprecedented economic measures were taken to protect people’s jobs and livelihoods 
and  to  minimise  the  impact  on  self-employed  people,  small  and  medium-sized 
enterprises  and  major  companies.  To  preserve  employment,  employers  expecting  to 
lose at least 20 per cent of their revenue due to the crisis, can apply for an allowance 
(up to 90 per cent of the company's wage bill, depending on the loss of turnover) that 
will enable them to pay their employees' wages for three months. The self-employed 
will  have  recourse  to  an  expedited  procedure  allowing  them  to  apply  for  additional 
income support up to the amount of the social minimum wage, which will help them 
pay their costs of living for a three-month period.   

(19)  Mitigating the employment and social impact of the crisis for those hardest hit should 
be  part  of  the  recovery  strategy.  Despite  the  package  of  measures  taken  to  preserve 
employment,  people  in  a  less  favourable  labour  market  position  and/or  vulnerable 
social situation have been hit harder. Unemployment increased, in particular for people 
working  on  flexible  contracts,  such  as  the  young,  temporary  agency  workers  and 
people  with  migrant  background.  The  COVID-19  crisis  also  highlighted  significant 
challenges in terms of access to adequate social protection for the self-employed that 
are  more  often  underinsured  (or  not  insured  at  all)  against  sickness,  disability, 
unemployment and old age. 

(20)  Liquidity  support  to  businesses  through  loans  and  guarantees,  with  a  focus  on  small 
and  medium-sized  enterprises,  has  been  of  utmost  importance.  The  distribution  of 
liquidity  support  to  firms  must  be  effectively  and  swiftly  implemented  by 
intermediaries  while  sustaining  their  resilience.  Allowing  the  deferred  payments  of 
taxes  and  social  contributions  and  speeding  up  contractual  payments  by  public 
authorities  can  further  help  improve  the  cash-flow  of  small  and  medium-sized 

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enterprises. Newly-founded start-ups and scale-ups may need specific support, e.g. in 
the form of equity stakes by public institutions and incentives for venture capital funds 
to  increase  their  investments  in  these  firms.  This  may  help  avoid  fire  sales  of 
strategically important European firms. As allowed and within the conditions set out in 
the temporary State aid framework9, equity or quasi-equity support should be ensured 
for all undertakings10 and not only for those who meet the Commission’s definition11 
of  small  and  medium-sized  enterprises.  Efforts  should  also  be  maintained  to  offer 
access and efficient digital public services for individuals and businesses. 

(21)  To  foster  the  economic  recovery,  it  will  be  important  to  front-load  mature  public 
investment  projects  and  promote  private  investment,  including  through  relevant 
reforms.  Targeted  policy  action,  including  investment  in  sectors  with  the  strongest 
prospects  to  raise  potential  growth  for  the  wider  economy,  can  help  to  tackle  the 
challenges  accelerated  by  the  recent  crisis.  In  particular,  investments  in  R&D 
embedded in the ‘mission-driven top sectors and innovation policy12 as well as human 
capital  can  help  support  long-term  productivity  growth  and  maintain  a  strong 
innovation  capacity.  This  is  notably  the  case  for  start-ups,  scale-ups  and  innovative 
SMEs  that  are  crucial  to  enhance  competitiveness  and  job  creation.  Investment  in 
initiatives from the Netherland’s Climate Agreement and National Energy and Climate 
Plan  to  address  climate  change  and  promote  the  energy  transition  can  make  a  key 
contribution  to  wider  societal  goals,  including  the  need  to  ensure  sustainable  and 
resource-efficient  economic  growth.  Furthermore,  although  the  Netherlands  is  a 
frontrunner  in  decarbonising  its  transport  sector,  the  use  of  renewable  energy  in 
transport  is  below  the  EU  average.  Finally,  investment  in  new  housing  is  needed  to 
alleviate the current  housing shortage. The programming of the Just  Transition  Fund 
for the period 2021-2027 could help the Netherlands to address some of the challenges 
posed  by  the  transition  to  a  climate  neutral  economy,  in  particular  in  the  territories 
covered by Annex D to the country report. This would allow the Netherlands to make 
the best use of that fund. 

(22)  Technical  and  digital  skills  and  qualified  professionals  are  crucial  for  the  Dutch 
economy's capacity to innovate and for sustainable and inclusive productivity growth. 
Investment  in  basic  and/or  digital  skills,  education  and  training,  including  upskilling 
and  reskilling  opportunities  for  all,  also  remains  crucial  to  improving  access  to  the 
labour market in particular to strengthen the employability of those at the margins of 
the  labour  market  (including  people  with  a  migrant  background  and    people  with 
disabilities), while fostering equal opportunities and active inclusion. 

(23)  Although the Netherlands has taken steps to address aggressive tax planning practices 
by  implementing  previously  agreed  international  and  European  initiatives,  the  high 
level  of  dividend,  royalty  and  interest  payments  made  via  the  Netherlands  suggests 
that  the  country’s  tax  rules  are  used  by  companies  that  engage  in  aggressive  tax 
planning. A large proportion of the foreign direct investment stock is held by ‘special 

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OJ C 91I , 20.3.2020, p. 1–9 
Including  for  start-ups  and  scale-ups  with  competitive  business  models  but  whose  cash-flows  are 
negatively affected by COVID-19. 
COM(2020) 150 final. 
This new policy approach aims to further boost  investment in R&D in order to achieve the long-term 
targets on key societal challenges grouped into four ‘missions’: (i) energy transition and sustainability; 
(ii)  agriculture,  water and food; (iii)  health and care; and (iv) security. The policy  is viewed  as a key 
priority  for  strengthening  competitiveness  and  addressing  societal  challenges  (Ministry  for  Economic 
Affairs  (EZK)  (2018),  Kamerbrief:  Naar  Missiegedreven  Innovatiebeleid  met  Impact,  Rijksoverheid, 
The Hague.) 

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purpose  entities’.  The  absence  of  withholding  taxes  on  outbound  (i.e.  from  EU 
residents to third country residents) royalties and interest payments from EU residents 
to third country residents may lead to those payments escaping tax altogether, if they 
are also not subject to tax in the recipient jurisdiction. The newly adopted reform on 
conditional  withholding  taxes  on  royalty,  and  interest  payments  in  case  of  abuse  or 
payments to low-tax jurisdictions, which will be implemented as of 1 January 2021, is 
a  positive  step  towards  decreasing  aggressive  tax  planning.  The  effectiveness  of  the 
reform should be monitored closely. 

(24)  A  number  of  Dutch  financial  institutions  have  recently  been  involved  in  money 
laundering  affairs.  These  cases  highlight  the  need,  despite  recent  efforts,  to  further 
strengthen  the  supervision  of  financial  institutions  and  to  investigate  and  prosecute 
money  laundering  cases.  Outside  the  financial  sector,  the  openness  of  the  Dutch 
economy to foreign direct investments and the country’s complex legal structures also 
pose significant money laundering risks. The misalignment between the low reporting 
of unusual  transactions  by trust  and  company service providers  and tax  advisers  and 
their  high  risk  exposure  calls  for  commensurate  supervision.  Given  the  extensive 
presence of complex legal structures, the well-functioning of the beneficial ownership 
register is key to avoiding the misuse of such entities, but the register has not been set 
up yet. 

to  address  medium- 

(25)  While the present recommendations focus on tackling the socio-economic impacts of 
the  pandemic  and  facilitating  the  economic  recovery,  the  2019  country-specific 
recommendations adopted by the Council on 9 July 2019 also covered reforms that are 
structural  challenges.  Those 
essential 
recommendations remain pertinent and will continue to be monitored throughout next 
year’s  European  Semester  annual  cycle.  That  also  applies  to  recommendations 
regarding investment-related economic policies. The latter recommendations should be 
taken  into  account  for  the  strategic  programming  of  cohesion  policy  funding  post-
2020, including for mitigating measures and exit strategies with regard to the current 
crisis. 

long-term 

to 

(26)  The  European  Semester  provides  the  framework  for  continuous  economic  and 
employment  policy  coordination  in  the  Union,  which  can  contribute  to  a  sustainable 
economy. Member States have taken stock of progress regarding the United Nations’ 
Sustainable  Development  Goals  implementation  in  their  2020  National  Reform 
Programmes. By ensuring the full implementation of the recommendations below, the 
Netherlands  will  contribute  to  the  progress  towards  the  Sustainable  Development 
Goals and to the common effort of ensuring competitive sustainability in the Union. 

(27)  Close coordination between economies in the economic and monetary union is key to 
achieve  a  swift  recovery  from  the  economic  impact  of  the  COVID-19.  The 
Netherlands should, as a Member State whose currency is the euro  – and taking into 
account  political  guidance  by  the  Eurogroup  –  ensure  its  policies  remain  consistent 
with the euro area recommendations and coordinated with those of the other euro area 
Member States.  

(28) 

In  the  context  of  the  2020  European  Semester,  the  Commission  has  carried  out  a 
comprehensive  analysis  of  the  Netherlands  economic  policy  and  published  it  in  the 
2020 country report. It has also assessed the 2020 Stability Programme and the 2020 
National  Reform  Programme  and  the  follow-up  given  to  the  recommendations 
addressed to the Netherlands in previous years. It has taken into account not only their 
relevance for sustainable fiscal and socioeconomic policy in the Netherlands, but also 

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(29) 

(30) 

their  compliance  with  Union  rules  and  guidance,  given  the  need  to  strengthen  the 
Union’s  overall  economic  governance  by  providing  Union-level  input  into  future 
national decisions.  

In  the  light  of  that  assessment,  the  Council  has  examined  the  2020  Stability 
Programme and its opinion13 is reflected in particular in recommendation (1) below. 

In the light of the Commission’s in-depth review and this assessment, the Council has 
examined  the  2020  National  Reform  Programme  and  the  2020  Stability  Programme. 
The present  recommendations  take into account the need to  tackle the pandemic and 
facilitate  the  economic  recovery  as  a  first  necessary  step  to  permit  an  adjustment  of 
imbalances.  Recommendations  directly  addressing  the  macroeconomic  imbalances 
identified by the Commission under Article 6 of  Regulation  (EU) No 1176/2011  are 
reflected in recommendation (3), 

HEREBY RECOMMENDS that the Netherlands take action in 2020 and 2021 to: 

1. 

2. 

3. 

4. 

In  line  with  the  general  escape  clause,  take  all  necessary  measures  to  effectively 
address the pandemic, sustain the economy and support the ensuing recovery. When 
economic  conditions  allow,  pursue  fiscal  policies  aimed  at  achieving  prudent 
medium-term  fiscal  positions  and  ensuring  debt  sustainability,  while  enhancing 
investment. Strengthen the resilience of the health system, including by tackling the 
existing  shortages  of  health  workers  and  stepping  up  the  deployment  of  relevant 
e-Health tools. 

Mitigate the employment and social impact of the crisis and promote adequate social 
protection for the self-employed. 

Front-load  mature  public  investment  projects  and  promote  private  investment  to 
foster the economic recovery. Focus investment on the green and digital transition, in 
particular  on  digital  skills  development,  sustainable  infrastructure  and    clean  and 
efficient  production  and  use  of  energy  as  well  as  mission-oriented  research  and 
innovation.  

Take  steps  to  fully  address  features  of  the  tax  system  that  facilitate  aggressive  tax 
planning in particular on outbound payments, notably by implementing the adopted 
its  effectiveness.  Ensure  effective  supervision  and 
measures  and  ensuring 
enforcement of the anti-money laundering framework. 

Done at Brussels, 

For the Council 
The President 

13 

Under Article 5(2) of Council Regulation (EC) No 1466/97. 

EN 

8 

  EN