The Dutch prime minister said his country faced a crisis and asked parliament to push through budget cuts after his government lost the support of its main political ally and tendered its resignation.
But the main opposition parties signaled they would not back the 14 to 16 billion savings package he must present to the European Union next week to show the Netherlands is on track to meet its stringent budget limit.
The Netherlands has been one of the euro zone’s most stable members but the minority coalition’s split with the populist Freedom Party has created a political vacuum, worrying financial markets and the Moody’s credit rating agency.
A Dutch bond sale went smoothly on Tuesday, calming financial markets but investors are waiting to see whether he can find new backers for the cuts and agree an election date with other political parties.
«Standing still is not good for the Netherlands. The problems are serious, the economy is stalling, employment is under pressure and government debt is growing faster than the Netherlands can afford,» Prime Minister Mark Rutte told parliament on Tuesday.
«Those are the facts and nobody can run away from them. I’m standing here without pretences, it is up to parliament and the voters.»
Geert Wilders’ Freedom Party had backed the government for the past 18 months but said he was no longer willing to be dictated to by Europe.
«It is the government, not the citizen, not Henk and Ingrid, who spent too much. Either we choose to act in the interests of Henk and Ingrid or we act in the interests of Brussels,» Wilders said.
The Netherlands must bring its deficit to 3 percent of gross domestic product, the EU’s limit, next year but it is forecast to be 4.6 percent unless extra cuts are made.
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