The Dutch welfare state had become the most extensive social security system in the world by the early eighties. But the welfare state came into crisis when spending rose due to dramatic high unemployment rates and poor economic growth. The early eighties saw unemployment rise to over 11% and the budget deficit rose to 10.7% of the national Income. The centre-right and centre-left coalitions of CDA-VVD and CDA-PvdA reformed the Dutch welfare state to bring the budget deficit under control and to create jobs. Social benefits were reduced, taxes lowered and businesses deregulated. Gradually the economy recovered and the budget deficit and unemployment were reduced considerably.