The Netherlands: Its go-head or bust - Dutch government at a point of no return in austerity negotiations

Mark Rutte

The survival of the Dutch Rutte Cabinet is on the line after Government coalition party members trying to cut government spending to meet  European budget rules broke off negotiations abruptly Wednesday.

The talks have hit a "difficult phase," said the Government Information Service in its first communique since the talks began three weeks ago. The talks were launched when it became apparent that the the Dutch economy's deficit in 2012 would be around 4.6 percent — well above the 3 percent allowed for eurozone countries in the agreed European Economic Pact.

The talks are scheduled to resume tomorrow morning, at Prime Minister Mark Rutte's official residence, the "Catshuis", in a leafy and fancy the Hague neighborhood.

Rutte and his conservative coalition members gave next to no information as to the chances of success of the negotiations, constantly repeating their earlier pledge that they would not disclose any information about the the meetings until they were completed.

EU-Digest