Dutch austerity talks collapse

Dutch finance minister Jan Kees de Jager cut short US-based IMF austerity talks to return home after the governing coalition in The Hague failed to reach an agreement on deficit limits which were imposed by the EU.

De Jager will attempt to reassure ratings agencies that he is able to put the country’s budget back on track after Geert Wilders withdrew his party’s support for the minority government in parliament. The country is in danger of losing its AAA rating if no agreement is reached.

Wilders rejected budget cuts, saying he “will not bow to dictators and Brussels’ bureaucrats.” The move has brought the nation’s government to near collapse and is likely to precipitate early elections.

The Dutch government is due to submit its 2013 budget to the EU by April 30.