Comparing Dutch and German Competition Policies

The issue of comparing the Dutch and German economies has received considerable attention, in particular on the Dutch side of the border. The general view is that both economies are very closely related and that Germany acts as a leader. This leads some economists to think, that Dutch growth figures can be forecasted merely by looking to Germany to see what the Dutch economic growth figures are (cf. Fase and De Bondt 1994). Recently, however, this view has been criticised. Dutch employment and growth forecasts for 1996 and 1997 are substantially higher than German forecasts. It is the combination of Dutch structural policy, wage moderation and sound public finance, which is responsible for our better economic performance.