Dutch government agrees to another $8 billion in budget cuts

Jeroen Dijsselbloem, the Netherlands's finance minister
Jock Fistick | Bloomberg | Getty Images
Jeroen Dijsselbloem, the Netherlands's finance minister

The Dutch government has agreed a further $8 billion in budget measures to honor the European Union's deficit ceiling next year, Finance Minister Jeroen Dijsselbloem told reporters on Tuesday.

The latest package has been under discussion for several weeks already, and details of the cuts will be presented on Sept. 17 in the 2014 budget.

The Netherlands has already implemented several rounds of spending cuts in an attempt to bring its deficit below 3 percent of economic output, inline with EU requirements and to protect its high credit-rating.

(Read more: 'Abysmal' Dutch economy threatens euro zone)

Agreement between the two government coalition parties on additional budget cuts had been widely expected.

The government's economic forecaster, the CPB, earlier this month raised its projection for the deficit to GDP ratio to 3.9 percent for 2014,from 3.7 percent previously.

That forecast did not take account of the likelihood of further budget cuts.

The three main agencies rate the Netherlands triple-A, albeit with a negative outlook.