The Dutch government, one of the biggest critics of European countries failing to rein in their budgets, has resigned after disagreeing on a plan to bring its own deficit in line with EU rules.
Queen Beatrix accepted the resignation of prime minister Mark Rutte and his cabinet after a meeting in which he told her talks on a new austerity package had failed over the weekend.
Mr Rutte will address parliament on Tuesday to discuss interim measures to keep public finances in order and schedule new elections. No date for elections was immediately announced, but opposition MPs called for a vote as soon as possible.
The 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.
Mr Rutte's hopes to clinch a deal to cut the target below the EU's 3% target evaporated on Saturday, when his most important political ally, populist...
↧