Holland normally weathers economic downturns better than most of its partners in the European Union.

Whether this will be the case this time round is far from certain if the results of yesterday’s study by accountants group KPMG are to be believed.
The study showed that virtually all companies in the Netherlands are cutting back and 20% of them are taking radical measures. Companies are reacting more quickly and severely to the market and are often taking the ruthless business approach favoured by private equity companies.
This could mean that Holland is propelled into a steeper than necessary decline, say experts. It could also mean the country will bounce back more quickly. The question then is: is the pain worth the cure?
The private equity approach has received a mixed reception here, following the financial debacle involving publisher PCM which was caused by a private equity firm. Slash and burn tactics often appear courageous and effective but also cause far more damage than is necessary.
And why change a winning formula? The Dutch system of cooperation between government, employers and unions during difficult times has proven a good remedy for past periods of economic malaise. There is nothing wrong in being careful, considerate and taking into account the traditional roots of an economy.
And why should one panic? Government finances are in good shape, unemployment is relatively low and the economy is generally well run. Cuts are necessary. But let’s use a scalpel rather than an axe.