STRASBOURG – “Expenditures are poised to surpass the agreed limit. The Commission urges the Netherlands to take immediate action,” stated an official from the European Commission.
The Commission’s autumn forecast projects a 7.3 percent increase in net expenditures for the Netherlands this year, significantly above the recommended maximum of 3.5 percent. Additionally, a 4.5 percent rise in net expenditures is anticipated for 2026, while member states have set a maximum growth limit of 3.3 percent.
The European Commission attributes the escalating deficit mainly to a one-time transfer of military pension liabilities from the government budget to a private pension fund.
This transfer is a singular event; however, ongoing high costs related to healthcare and social security are forecasted to exert substantial long-term pressure on government finances, according to a Commission official.
Defense spending follows a similar trend, rising from 1.6 percent of GDP in 2024 to 1.7 percent this year, with expectations of reaching 1.8 percent by 2026.
The European Commission includes these additional defense expenditures in its calculations of government spending for the Netherlands, differing from the approach taken with sixteen EU countries utilizing the national escape clause, which is applicable for up to four years and a maximum of 1.5 percent of GDP.
(November 25, 2025)
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