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22 April 2012

FT: Dutch government falls after budget talks


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The Dutch governing coalition collapsed on Saturday when far-right politician, Geert Wilders, pulled out of budget cut talks, saying it was not in the Netherlands' interest to meet the deficit limit of three per cent imposed by the new European fiscal pact.


Highlighting widespread voter anger over EU-imposed budget cuts, Mr Wilders said he could not allow Dutch citizens to “pay out of their pockets for the senseless demands of Brussels. We don’t want to follow Brussels’ orders. We don’t want to make our retirees bleed for Brussels’ diktats”, Mr Wilders said.

The loss of Mr Wilders’ support left the conservative government of Mark Rutte, prime minister, with just over a third of the seats in parliament. Mr Rutte and other party leaders said that made new elections inevitable. The fall of Mr Rutte’s government is ironic because the Dutch were among the most vociferous supporters of strict budget limits during negotiations over Europe-wide fiscal reforms at Brussels summits last year.

Exiting the government at this stage will allow Mr Wilders to disclaim any responsibility for unpopular budget cuts. But the biggest winner in elections could be the far-left eurosceptic Socialist party, which has seen its support rise to as much as 20 per cent of the electorate over the past year. Meanwhile, Dutch analysts said the inability of even the prosperous, deficit-averse Netherlands to generate voter support for Europe-directed budget cuts called the sustainability of the EU fiscal pact into question.

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© Financial Times


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