Netherlands head for elections after talks collapse

The Netherlands is headed for early elections after coalition talks on a fiscal austerity package broke down Saturday, Dutch Prime Minister Mark Rutte said.

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" European Union 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 on Saturday, 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 (Uê13.2 billion) to 16 billion euros -- 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 percent of domestic gross product under current conditions. But the EU deficit ceiling is 3.0 percent of GDP.

The figures were a blow to the government, which had insisted that countries in breach of European Union deficit rules had to be rigorous in correcting public finances.

In a separate press conference at the Dutch parliament meanwhile, Wilders expressed regret that the talks had failed but said the suggested cuts were unacceptable.

"It is a package that will damage economic growth in the coming years and that will allow unemployment to grow.

"It will severely effect the spending power of many people, especially pensioners.

"We cannot live up to the demands Brussels is putting on us. Money is being taken from the wallets of pensioners.

"That's not right, just because Brussels wants to take away the economy built up by the elderly," he said.

Diederik Samson of the Labour Party (PvDA), the leader of the largest parliamentary opposition party, told NOS public television: "It means new elections in September or October, it will not be before the summer."

Rutte's pro-business Party for Freedom and Democracy (VVD) is in coalition with the Christian Democrats (CDA).

It had also received the backing of Wilders' PVV, which until last month had given it a 76 seats out of 150 in the Lower House. But that one-seat majority evaporated when a PVV deputy decided to become an independent.

That prompted the Dutch prime minister to solicit support from another small minority Christian party (SGP) which has two seats in parliament.

But with Wilders withdrawing his support from the government those talks became academic Saturday.

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