Dutch Governing Coalition Resigns After Failing to Pass Austerity Budget

The Dutch prime minister, Mark Rutte, announced the resignation of his coalition government on Monday after its partners failed to agree on austerity measures, leaving the Netherlands with a messy leadership vacuum at a time of anxiety about the euro, the International Herald Tribune reported. Mr. Rutte has been an ally to Chancellor Angela Merkel of Germany on fiscal matters and a strong voice in favor of austerity for other European countries. His inability to deliver on his promises signals a possible shrinking of the euro zone “core” around Germany, which has insisted on tight fiscal discipline. Mr. Rutte tendered his resignation to Queen Beatrix, the head of state, at her palace in The Hague, his office said. The queen replied that she would take his offer into consideration, and she asked that his cabinet — made up of ministers from Mr. Rutte’s conservative VVD Party and the Christian Democrats — continue on in the interest of the nation. That paves the way for new elections, possibly before the end of June. The dissolution of the minority government became inevitable after an ally, the far-right Freedom Party of Geert Wilders, abandoned negotiations on Saturday intended to cut a budget shortfall by billions of euros to meet targets agreed to last year in Brussels and to safeguard the country’s coveted AAA credit rating. The two Dutch coalition partners had managed to govern since taking office in 2010 only because Mr. Wilders, an anti-Muslim, anti-immigration firebrand, cooperated in Parliament to give them a majority. Budget negotiations had been under way since March, when the government forecast that the 2013 deficit would be 4.6 percent of gross domestic product, well above the 3 percent maximum mandated by euro zone leaders. Read more. (Subscription required.)