More insight required into increase in State financial risks
House of Representatives does not receive full information; Court of Audit presents first impressions
The risks to public finances in the Netherlands have increased substantially since 2008. The House of Representatives, as controller of the government, however, does not receive periodic summary information on the development of financial risks yet the government is increasingly assuming risks from citizens, enterprises and other countries in Europe. This is illustrated by the National Mortgage Guarantee, the bank deposit guarantee scheme, export credit insurance schemes and guaranteed loans to Ireland, Portugal and Greece. The House of Representatives therefore does not have a full understanding of the size of the risks, whether the risks are managed and how they can be mitigated by the government. The relationship between the risks is also important: the European guarantees expose public finances to risk but are intended to avert the far greater risk of economic collapse brought about by the euro crisis. The Court of Audit published an overview today and called on the Minister of Finance to take up the initiative.