Dutch PM still bats for reforms

A day after he tendered his cabinet's resignation to Queen Beatrix of the Netherlands, prime minister Mark Rutte said the country's economic woes would need to be faced to ensure the Netherlands evaded the debt crisis, as opposition lawmakers said there was no need to stick to budget targets.

Addressing the parliament in The Hague, Rutte said the need to adopt reforms had not diminished after Geert Wilders's Freedom Party pulled out of budget talks, ending its support for the minority government. A proposal for austerity measures would be sent to parliament tomorrow for debate this week, and new elections may be possibly held on 12 September, he said.

Rutte told lawmakers yesterday that the problems were too serious to put off. He added the economy was faltering, employment was under pressure and the nation's debt was growing faster than what the country could afford. He said these were the facts and nobody could run away from that.

Rutte intends to implement cuts of at least €9.5 billion needed to satisfy European deficit limits after Wilders opted out over proposed changes to state pensions. Global equities fell yesterday as Rutte offered to quit, leading to uncertainty over new elections and investor doubts about his country's ability to retain its AAA credit rating.

Rutte, who has been asked to continue  in a caretaker capacity as the Queen considered his resignation offer, faces a 2013 budget shortfall forecast at 4.6 per cent of gross domestic product. His government has said it would draw up plans on how to pare it to the EU's 3 per cent limit by 30 April.

Opposition lawmakers suggested going slow on reforms and disregarding the deficit limit for next year with Emile Roemer, leader of the Socialist Party, which, according to polls would double its seats if elections were held now, called current government plans to cut the budget by about €14 billion ''unachievable and not sensible.''