http://www.france24.com/en/20120425-dutch-queen-beatrix-netherlands-dissolve-parliament-government-rutte-budget-cuts
http://www.dutchnews.nl/news/archives/2012/04/prime_minister_calls_for_unity.php
Reuters - Dutch Queen Beatrix has asked for parliament to be dissolved so that elections can be held on September 12, leaving the country open to months of political and economic uncertainty after the government collapsed in a row over budget cuts.
The triple-A rated Netherlands has been one of the euro zone’s most stable countries but has been plunged into a political crisis, worrying financial markets focused on the region’s debt troubles.
“The euro zone fiscal compact will lose what remains of its credibility if even one of the AAA members is politically unable to implement the austerity measures required to adhere to this rule,” Rabobank said in a research note.
After losing his main ally, care-taker Prime Minister Mark Rutte is desperately trying to find support from opposition parties for budget cuts to put the country on track to meet the European Union’s deficit targets.
The largest opposition parties on Tuesday refused to back his 14 to 16 billion euros package of cuts, and now he has less than a week to win support from smaller parties so he can present his plans to the EU by April 30.
With doubts growing across Europe about the price of austerity, parties to Rutte’s left said trying to meet the EU’s deficit target of 3 percent of gross domestic product in 2013 would hurt the economy and the Dutch people.
A statement issued by the prime minister’s office said the Queen of the caretaker government requested the dissolution of the House of Representatives, to allow elections to go ahead on September 12.
Rutte’s centre-right government tendered its resignation on Monday after only 18 months in power and the elections will be the fifth in ten years.
Rutte’s two-party coalition had relied on the Freedom Party headed by Geert Wilders, the eurosceptic, anti-Islam politician - to get legislation through parliament, even though the Freedom Party remained outside the government.
But Wilders withdrew that support at the weekend after seven weeks of negotiations on the extra budget cuts, without which the deficit is forecast to reach 4.6 percent of GDP next year.
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Prime minister calls for unity, MPs are divided on budget plans
Wednesday 25 April 2012
Despite Dutch MPs support for crisis measures to bail out the economy, it will be difficult to reach majority support for serious spending cuts and tax increases ahead of the general election on September 12, commentators said on Wednesday.
Prime minister Mark Rutte made an strong appeal to MPs on Tuesday to work together to help the Netherlands through the economic crisis. Yet although a large number of the 11 parties in parliament say they are willing to try to put together a 2013 budget, there are a multitude of divisions between them.
‘I have heard a lot of good intentions but nothing concrete,’ Stef Blok, who leads the VVD in parliament, said.
Above 3%
Above 3%
In addition, the left wing greens Groenlinks, the Socialists, Labour and Geert Wilders anti-immigration PVV say they do not believe in the need to meet Brussel’s budget deficit targets next year. Together, they form a majority in parliament.
The two Liberal parties VVD and D66, along with the Christian parties, do want to meet the 3% deadline and cut spending by €14bn. Next year’s budget plans are due to be submitted to Brussels on April 30, and finance minister Jan Kees de Jager has said he is determined to meet that target, despite the difficulties.
‘I am gloomy about the prospects of us reaching a deal,’ Socialist Party leader Emile Roemer said during Tuesday evening’s debate.
Labour leader Diederick Samsom has condemned the package of measures worked out over the past seven weeks between the minority coalition and the PVV as being ‘embarrassing short-term work’. MPs are due to debate those plans on Thursday.
Welfare plans
Meanwhile, a majority of MPs say the new work for welfare legislation currently being handled in parliament should be declared controversial. If the plans are put on hold, the government will have to find a further €1.8bn in savings.
The welfare reforms are part of a €18bn package of tax increases and cuts agreed when the coalition government came to power in October 2010. However, many of those measures have not yet been turned into new laws and are likely to be dropped.
In the Netherlands, once an election has been called, the cabinet becomes a caretaker administration and legislation deemed controversial by MPs is dropped. Restrictions on dual nationality and reforms to special education are also likely to be put on ice.
and....
http://www.rnw.nl/english/article/whos-charge-hague
The Netherlands will go to the polls on 12 September to elect a new parliament. At least, that is what Queen Beatrix has asked Prime Minister Mark Rutte to set in motion. The precise date could still change when the cabinet makes the official decision later this week.
So who'll be running the country in the meantime? This question comes up every time a cabinet resigns but is more difficult than usual to answer this time.
Attempts to fill the political vacuum began in earnest in parliament on Tuesday. Prime Minister Mark Rutte appeared to answer questions about the end of his short-lived minority cabinet and to discuss how to proceed. That was anything but clear, even after four hours of debate
Minority caretaker
The current situation is unique in the history of Dutch politics. The Prime Minister has resigned, along with his entire cabinet, but will continue to govern the country as a caretaker cabinet until a new government can be formed in the wake of elections.
The current situation is unique in the history of Dutch politics. The Prime Minister has resigned, along with his entire cabinet, but will continue to govern the country as a caretaker cabinet until a new government can be formed in the wake of elections.
However, Mr Rutte’s government is in a weaker position than most caretaker governments as it does not command a majority in parliament. That effectively means he can barely scratch his nose without asking parliament’s permission.
The leader of the Christian Union, Arie Slob, repeatedly reminded the prime minister of his new position. "The situation has changed, Mr Rutte, the cabinet cannot make the next move. Parliament has to come up with a crisis package now. Your role is to come and listen."
Seven weeks
Parliament faces the task of coming up with a budget for 2013. This is precisely what Mr Rutte, along with his coalition partner the Christian Democrats and Geert Wilders’ Freedom Party, had been attempting to do in almost daily meetings in the Catshuis - the PM's official residence - over the past seven weeks. Mr Wilders pulled out at the last minute when a package for an austerity budget was nearly complete.
Parliament faces the task of coming up with a budget for 2013. This is precisely what Mr Rutte, along with his coalition partner the Christian Democrats and Geert Wilders’ Freedom Party, had been attempting to do in almost daily meetings in the Catshuis - the PM's official residence - over the past seven weeks. Mr Wilders pulled out at the last minute when a package for an austerity budget was nearly complete.
MPs took issue, however, with Mr Rutte using that package as a basis for next year’s budget. Green Left leader Jolanda Sap: "‘The VVD and CDA have to show that the right-wing cabinet is done and throw the Catshuis package in the rubbish bin."
Tuesday’s debate showed how difficult it will be to govern the country in the coming months. The political parties are already in campaign mode and will be reluctant to take the tough measuress necessary to bring the budget deficit within the European guideline. In fact, a majority in parliament advocates a so-called 'gradual landing' with a budget deficit over three percent in 2013 and a wait until at least 2014 before bringing it down further. In this, parliament is going for economic growth over the need for austerity.
Bad timing
The timing for this political vacuum could hardly be worse. EU Economic and Finance Commissioner Ollie Rehn has set a deadline for the Netherlands to submit at least a sketch of next year’s budget, showing how this country will meet Europe’s three percent rule for budget deficits. That deadline is next Monday.
The timing for this political vacuum could hardly be worse. EU Economic and Finance Commissioner Ollie Rehn has set a deadline for the Netherlands to submit at least a sketch of next year’s budget, showing how this country will meet Europe’s three percent rule for budget deficits. That deadline is next Monday.
The Netherlands is hoping for some understanding from Brussels. The sombre projections for the Dutch economy only appeared a few months ago and now the political crisis will make it even harder to meet the EU timetable.
Mark Rutte knows better than anyone that the Netherlands can expect little sympathy from other European countries. The Netherlands is, after all, the country which just last year pushed for stricter enforcement of the budget rules and gave Mr Rehn more power as the so-called ‘Euro czar’.
Rutte: "If the Netherlands does not come through on the three percent deficit, then we’ll be hoist with our own petard."
Penalties
The financial consequences of the fall of this government could be high. The fine for not getting under the three percent threshold would, for the Netherlands, come to around 1.2 billion euros. That fine would be levied annually as long as the deficit remained too high. Just as importantly, credit rating agencies may take away the much-prized AAA rating due to political instability and lenders may charge more interest.
The financial consequences of the fall of this government could be high. The fine for not getting under the three percent threshold would, for the Netherlands, come to around 1.2 billion euros. That fine would be levied annually as long as the deficit remained too high. Just as importantly, credit rating agencies may take away the much-prized AAA rating due to political instability and lenders may charge more interest.
Parliament will meet on Thursday in an attempt to piece together the outlines of a 2013 budget. Six negotiators from three parties meeting behind closed doors for seven weeks failed to do so. Now 150 MPs from 11 parties meeting publicly for one day will give it a try.
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