The Netherlands is expected to see growth resume only slowly, implying further increases in unemployment in the short term. Current fiscal targets imply a pro-cyclical stance for the next couple of years. In the medium term, economic performance will be affected by continued globalisation and ageing of the labour force. In this perspective, structural fiscal consolidation measures are necessary to secure fiscal sustainability, but the government should also prepare the business sector for the ongoing challenges of globalisation, and adapt labour market institutions for an older and shrinking labour force.