Caretaker Dutch government proposed 2011 spending cuts will impact on health care, says BMI

Among the 10 key Western European markets in Business Monitor International’s first-quarter 2011 Pharmaceuticals & Healthcare Business Environment Ratings (BERs), the Netherlands lies in seventh place. The country's strong and transparent regulatory framework means it scores well in terms of risk. However, poor market prospects due to pressures on drug pricing and reimbursement will continue to weigh on the country’s composite overall score.

In late September 2010, the caretaker/coalition Dutch government proposed cutting 2011 spending by 3.2 billion euros ($4.5 billion) in order to halt rising public debt and aid long-term economic recovery. It was announced that savings would be found in wage moderation, lower pay rises for civil servants, higher tobacco taxes, reduced medical benefits and less spending on immigrants.

With the traditionally high public expenditure on health care and the expected growth in demand for health care services, it comes as no surprise that the government has included the health care sector in its list of spending cuts.