The European Commission has issued recommendations to the Netherlands, urging the nation to implement structural measures to combat excessive nitrogen deposition and improve water quality. A confidential draft recommendation emphasizes the need for “further efforts towards sustainable agriculture” to achieve these goals.

The Commission’s recommendations extend beyond environmental concerns. The Netherlands is also being advised to reduce government spending in the medium term to address a rapidly increasing budget deficit projected from 2028 onwards. This fiscal guidance is part of an annual review process implemented after the euro crisis to encourage responsible policies among EU member states.

To reduce dependence on fossil fuels, the Commission is urging the Netherlands to invest significantly more in renewable energy sources such as wind, solar, and hydrogen. This transition requires substantial investments in expanding the electricity network and streamlining permit procedures. The cabinet is also encouraged to fully commit to improving the energy efficiency of buildings.

The Commission also reiterated the need for the Netherlands to develop concrete plans to build more houses and streamline the permit process for construction projects. This includes ensuring growth in both the buying and rental sectors. The Commission cautioned that the intended freezing of rents could hinder the construction of rental housing.

Additional recommendations for the Netherlands include addressing inflexible employment contracts and tackling labor market shortages. The Commission also reiterated concerns about rising healthcare costs, particularly in long-term care.