Dutch Prime Minister Mark Rutte and Cabinet resigned Following The Failure of Austerity Talks

The Netherlands’ Prime Minister Mark Rutte and his Cabinet resigned on 23 April 2012 after failing to reach agreement on reducing the country's budget to meet European guidelines. Rutte tendered his resignation to Queen Beatrix, the head of state, at her palace in The Hague, which was accepted by her subsequently.

The queen asked  Rutte’s conservative VVD Party and the Christian Democrats — to continue in the interest of the nation. The new elections, are expected to take place before the end of June 2012.

In the 150-seat Parliament Rutte’s VVD Party has 31 seats, while the coalition partners, the Christian Democrats and Wilders’s Freedom Party have 21 and 23 seats respectively. The opposition Labor Party has 30, while the Socialists have 15.

Rutte, an ally to Angela Merkel, Chancellor of Germany on fiscal matters and a vociferous supporter of austerity for other European countries has been unable to deliver on his promises of reducing the country's budget.
Although the Netherlands has relatively low levels of national debt, its economy is in recession and it is expected to post a deficit of 4.6 percent in 2012 - well over the 3 percent mandated by European rules.