Citigroup Says Dutch No Longer Part of Euro-Area Core
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The Netherlands, the fifth-largest euro economy, shouldn’t be counted in the core of the common currency as its borrowing costs climb, Citigroup Inc. said.
“The poor performance of the Dutch economy should make it very difficult for the country to reduce its general government deficit,” Juergen Michels, chief euro-area economist at Citigroup in London, and three other economists said in a March 23 note to investors. The Netherlands is in a weaker position than Germany, Finland and Luxembourg, he said.