Employers' organisations have urged the government not to make short-term cost savings in an effort to reduce the budget deficit, saying this will damage both the economy and consumer confidence.

On Tuesday, the government’s macro-economic planning bureau CPB said the economy will contract 5% next year, while unemployment will rise sharply.

Like the employers, the CPB also warned the government not to take short-term measures. It said ministers should take steps to reform the economy and ensure long-term stability, such as increasing the state pension age earlier.

The cabinet will announce in February what measures it is planning to take to cut the budget deficit. ‘There are no taboos,’ finance minister Jan Kees de Jager said.

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Employers have also called on ministers to make sure that social premiums do not get out of control. In particular, rising healthcare costs are rising very fast, the VNO-NCW and MKB Nederland said on Wednesday.

Social affairs ministry figures show employers paid over €52bn in social security and healthcare contributions last year, compared with under €40bn nine years ago.

‘Last year, employers spent €10bn on healthcare insurance premiums but they have no influence at all on costs,’ employers’ spokesman Ton Schoenmaeckers told the Financieele Dagblad.

Employers currently pay a wage related contribution towards healthcare costs on behalf of their employees. The self employed and freelancers have to pay that cost themselves.