The Netherlands is headed for early elections after coalition talks on a fiscal austerity package broke down yesterday, Dutch Prime Minister Mark Rutte said.
The far-right politician Geert Wilders walked out
Seven weeks of negotiations seen as a litmus test for Rutte’s government fell apart after the minority rightist coalition’s parliamentary ally walked out, saying it “could not live up to” EU demands.
“I have to inform you today that the three parties have failed to come to common answers,” a visibly upset Rutte told reporters in The Hague.
Elections now seemed likely, he added.
Rutte said he had phoned Dutch Queen Beatrix to inform her of the latest developments and will consult with his cabinet Monday to see how to proceed.
“I am going to make some suggestions to cabinet to take the necessary measures. It will all be in the interest of the Netherlands,” he said, without elaborating.
The ruling coalition and its far-right parliamentary ally had launched make-or-break talks on the contentious issue of austerity measures on March 5. The negotiations were initially scheduled to last three weeks.
But yesterday, the talks collapsed at the last moment when the far-right and Eurosceptic politician Geert Wilders, whose Freedom Party (PVV) gave Rutte’s government a slender majority in parliament, walked out.
Without Wilders’ support, it was unlikely Rutte’s government would be able to get the austerity package – between €10 billion to €16 billion – through the 150-seat Lower House.
Revised data from the country’s central planning bureau forecast last month that the 2013 public deficit would rise to 4.6 per cent of domestic gross product under current conditions. But the EU deficit ceiling is three per cent of GDP.
The figures were a blow to the government, which had insisted that countries in breach of EU deficit rules had to be rigorous in correcting public finances.
In a separate press conference at the Dutch parliament, Wilders expressed regret that the talks had failed but said the suggested cuts were unacceptable.