Dutch government resigns after austerity talks fail
Source: Agencies |
April 24, 2012, Tuesday
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THE Dutch government, one of the most vocal critics of European countries failing to rein in their budgets, quit yesterday after failing to agree on a plan to bring its own deficit in line with European Union rules.
The government information service said Queen Beatrix had accepted the resignation of Prime Minister Mark Rutte and his Cabinet after a meeting in which Rutte told her talks on a new austerity package had failed over the weekend. Rutte is to address parliament today to discuss interim measures to keep public finances in order and schedule new elections.
No date for elections was immediately announced, but opposition lawmakers called for a vote as soon as possible.
The Dutch government collapse came a day after the first round election victory of France's soft-on-austerity socialist candidate Francois Hollande.
It calls into question whether austerity policies that are causing trauma in countries such as Greece, Spain and Portugal can be enforced even in "core" European countries such as France - or the Netherlands, one of the few along with Germany to maintain an AAA credit rating.
Rutte's hopes to clinch a deal to cut the target below the EU's 3 percent target evaporated on Saturday, when his most important political ally, populist euroskeptic Geert Wilders walked out of the talks, saying a slavish adherence to European rules was foolish and would harm the Dutch economy.
That view is shared by some, such as the government's Central Plan Bureau, and opposed by others, such as Dutch Central Bank President Klaas Knot.
"We don't want our pensioners to suffer for the sake of the dictators in Brussels," Wilders said.
European Commissioner Neelie Kroes called Wilders a hypocrite, since the Netherlands, along with Germany, had been one of the loudest in demanding Brussels adopt a 3 percent deficit limit.
A spokesman for the German finance ministry said that despite the developments, approval for Europe's plan to tackle government debt by cutting spending was increasing.
The government information service said Queen Beatrix had accepted the resignation of Prime Minister Mark Rutte and his Cabinet after a meeting in which Rutte told her talks on a new austerity package had failed over the weekend. Rutte is to address parliament today to discuss interim measures to keep public finances in order and schedule new elections.
No date for elections was immediately announced, but opposition lawmakers called for a vote as soon as possible.
The Dutch government collapse came a day after the first round election victory of France's soft-on-austerity socialist candidate Francois Hollande.
It calls into question whether austerity policies that are causing trauma in countries such as Greece, Spain and Portugal can be enforced even in "core" European countries such as France - or the Netherlands, one of the few along with Germany to maintain an AAA credit rating.
Rutte's hopes to clinch a deal to cut the target below the EU's 3 percent target evaporated on Saturday, when his most important political ally, populist euroskeptic Geert Wilders walked out of the talks, saying a slavish adherence to European rules was foolish and would harm the Dutch economy.
That view is shared by some, such as the government's Central Plan Bureau, and opposed by others, such as Dutch Central Bank President Klaas Knot.
"We don't want our pensioners to suffer for the sake of the dictators in Brussels," Wilders said.
European Commissioner Neelie Kroes called Wilders a hypocrite, since the Netherlands, along with Germany, had been one of the loudest in demanding Brussels adopt a 3 percent deficit limit.
A spokesman for the German finance ministry said that despite the developments, approval for Europe's plan to tackle government debt by cutting spending was increasing.
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