A strengthening but moderate recovery is taking hold after a double-dip recession that stretched into the first quarter of 2014. Growth has been led by exports and investment, although net exports faltered in mid-2015 as the government cut natural gas output in response to earthquakes in the gas producing areas. Fiscal stance: The Netherlands should use any available fiscal space with respect to the Medium-Term Objective (MTO) to increase spending on the government’s priority areas or reduce taxes to bolster the recovery so long as the economy remains below potential.