Monday, 23 April 2012

Dutch Government Resigns over EURO Budget Fight

The Dutch Liberal government of Prime Minister Mark Rutte, has announced its resignation over budget differences, regarding the saving measures for the Euro.  The previous government fell two years ago over differences in Afghanistan deployment.

Budget talks conducted since March, broke apart this weekend when Geert Wilders announced that his populist right party (PW) could no longer support the Rutte's Christian Democrats (CDA).  Despite the resignation, Rutte's government will continue to maintain a housekeeping role for Parliament, although it will not be able to pass any important measures.  The Dutch parliament is expected to debate budget measures that will fulfill the requirements of the EU.

Once the Queen accepts the resignation, a new parliament must be elected within 80 days.  The EU announced that despite the crisis in Holland, that the Dutch parliament would follow the rules set down by Brussels.  A spokesperson told reporters in Brussels that this wasn't about Brussels, but what was good for the Netherlands and its people.  

Finance Minister Jan Kees said that he would continue to advocate support for the  budget savings and that Brussels expected that the Netherlands comes up with deficit reduction plans by the end of the month.  This means capping the budget deficit to a maximum 3% increase. 

Greece is an example of spending gone array.  Italy, Spain and France have similar problems.  EU leaders have been growing grey hair to keep spending under control. 

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