Unemployment in the Netherlands increased further in August 2020. According to figures of Statistics Netherlands (CBS), 426,000 people were unemployed last month, which is equivalent to 4.6% of the labor force. In July 2020 this was still 4.5%.
The Dutch state is expected to borrow less this year than previously forecast. Because the contraction of the Dutch economy is lower in the new estimates, the predicted deficit for the government will also be lower. In addition, the support measures against the corona crisis have a lower impact on the budget than previously thought. According to the General Treasury Agency of the Ministry of Finance (DSTA), the Netherlands will issue a total of EUR 110.7 billion this year on the money and capital markets, compared to EUR 138.8 billion expected at the end of June.
The European Commission has not approved the Dutch plans to subsidize environmentally friendly hydrogen production. Eric Wiebes, Minister of Economic Affairs and Climate, announced this to the Lower House on Monday. This marks the end of the government’s plans to use hydrogen to reduce greenhouse gas emissions. For heavy industry, hydrogen can serve as a replacement for oil, natural gas and coal. However, the European Commission states that a lot of sustainable electricity is needed to make hydrogen green. In the Netherlands a lot of electricity is still generated by natural gas and coal, and the production of hydrogen will only increase CO2 emissions.
The 6M Euribor is unchanged at -0.46% compared to previous business day. The 10Y Swap decreased with 1 basis point to -0.22% compared to previous business day.
In the attachment, today’s market data on money and capital market rates as well as other rates are presented.
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