THE HAGUE, 20/09/00 - Prime Minister Wim Kok says the Netherlands must keep on the alert for signs of overheating of the economy. Kok was thinking particularly here of pay trends and the effects of the weak euro and rising oil prices. The premier made these remarks in his statement on the Queen's Speech.

According to Kok, the healthy trend seen in government finances has surprised him. "Even I could never have dreamed in 1998 that we would already have come so far in realising our ambitions in the coalition accord. "

But he cautioned that this positive development is no reason to rest on the government's laurels, quoting the Queen's Speech: "From the affluence of the moment, we must work on the prosperity of tomorrow. " The government must put money aside now via the redemption of the national debt for the increasing 'greying' of the population.

The tight labour market also demand extra attention, Kok added. "We have in this to some extent become the victims of our own success. " He warned that this tight labour market must not lead to irresponsibly high pay rise trends.