Worrying to see that Dutch media and politicians reintroduce the false North vs. South / frugal vs. profligate stereotypes. While across-the-board (left to right) outrage at Italy is culturally understandable, it is not grounded in facts. Thread: (1/N) https://twitter.com/pieter_dewilde/status/1247113970378510336

First, have Italians been spending irresponsibly? No. In terms of the difference between its tax revenues and spending (primary balance), the Italians have been prudent. Since 2009, the government has been saving more than 10% of its national income. (2/N)

The Dutch government, on the other hand, has been spending more than it takes in in terms of revenues. In fact, the Italy is much more like Germany while the Netherlands has been more 'profligate' than the Eurozone overall:

This behavior by the Italians is not new. Italy has been running fiscal primary surpluses almost continuously since 1992. https://www.ft.com/content/f05bbc44-cd69-11e8-b276-b9069bde0956

That's the government, but what about households? Italian households aren't very indebted. Debts equal ~40% of incomes, this is ~120% for Dutch households. Both have reduced their relative debt load since the crisis, though the Italians have done this with falling incomes.

What about firms? Here the picture is similar as households: Italian firms are less indebted and have been reducing their debt loads since the crisis.

What about taxes? Abroad (though not at home), the Netherlands is well-known for being one of the world's largest tax havens, siphoning off corporate taxes from the Italian government. https://www.foreignaffairs.com/articles/netherlands/2019-11-06/how-netherlands-built-one-worlds-worst-tax-havens