This site uses cookies to improve your experience and to provide services and advertising. By continuing to browse, you agree to the use of cookies described in our Cookies Policy. You may change your settings at any time but this may impact on the functionality of the site. To learn more see our Cookies Policy.
Dublin: 12 °C Wednesday 16 October, 2019

Dutch caretaker PM urges 'responsibility' over economic problems

Despite the fall of the country’s government over budget disagreements yesterday, the Netherlands raised €2 billion at a bond auction today.

Caretaker Prime Minister Mark Rutte addresses parliament in The Hague, Netherlands
Caretaker Prime Minister Mark Rutte addresses parliament in The Hague, Netherlands
Image: Peter Dejong/AP/Press Association Images

ONE AFTER THE fall of his government, the Netherland’s now-caretaker Prime Minister Mark Rutte addressed parliament to discuss interim budget cuts and schedule new elections – and to urge MPs to act “responsibly” in relation to the country’s economic problems.

Yesterday, Rutte’s minority government collapsed over internal disagreements about austerity measures and how to cut €16 billion from the national budget in order to meet deficit targets laid down by the EU.

Rutte admitted the talks had collapsed after his centre-right coalition, which has been in power since October 2010, failed to agree on budget adjustments with ally Geert Wilders who refused to do a deal.

However, despite the political turmoil, the Netherlands raised €2 billion at a bond auction today, a comfortable amount as the government had been hoping to raise between €1.5 and €2.5 billion.

It is feared that the government’s collapse could cost the Netherlands it triple-A credit rating; the country is currently one of the last in the eurozone to retain the top rating with the three major credit ratings agencies.

Last night, Moody’s said the political situation was “credit negative” but that the country had a stable outlook.

On 30 April, the Netherlands must present the European Commission with a 2013 preliminary budget outlining its plans to bring the the country’s projected budget deficit of 4.6 per cent of GDP to the EU limit of 3 per cent.

Election on the cards after Dutch budget talks collapse>

  • Share on Facebook
  • Email this article

About the author:

Read next: