The Netherlands armed forces is bracing itself for the impact of new budget cuts, expected to be implemented by the newly elected, centre-right government of Christian-Democrat Prime Minister Prof Dr Jan Peter Balkenende. According to current plans, cutbacks will start with over EUR 100 million ($ 101.5 mil-lion) in 2003 growing to over EUR225 million annually from 2006. On the positive side, up to EUR50 million extra per year is to be made available to support development of a European security and defence capability. I % It is uncertain exactly how the cuts are going to be absorbed. Press reports agree that the new Defence Minister Benk Korthals and Secretary of State Cees van dcr Knaap are facing a tough challenge.
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