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13 September 2012

Reuters: Dutch PM wins election; set for tough coalition talks


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Dutch Prime Minister Mark Rutte's Liberals won a closely contested election, but he faced the prospect of having to form a government with his arch-rivals from the Labour party.


Rutte's government was known throughout Europe for its hardline stance on fiscal discipline, demanding austerity from indebted countries on the eurozone's fringes and insisting the Netherlands meet its own European Union deficit targets. He will, however, probably lose his close ally, outspoken Finance Minister Jan Kees de Jager, whose Christian Democrat party - which has the Dutch post-war political landscape - crashed to its worst result ever, coming fifth.

Samsom, who promised "a more social Netherlands", wants a slower pace of cuts in order to allow for more fiscal stimulus at a time when the Dutch economy is growing at far slower pace than neighbouring Germany. He has also said he would give Greece more time to put its house in order and, unlike Rutte, has not ruled out a third bailout there.

Labour has also promised gradually to scrap an expensive tax credit for homeowners, something that would be disproportionately painful for supporters of the pro-business Liberals. But despite their differences, the election was an unambiguous victory for the centrist parties.

The hard-left Socialists, who oppose austerity and eurozone bailouts, finished a distant third, tying with Geert Wilders' populist Freedom Party. His far-right anti-immigration party campaigned to leave the euro and the European Union. He lost nearly half his seats.

The unexpectedly clear result removed another potential obstacle to efforts to stabilise Europe's single currency after Germany's constitutional court gave the green light for the eurozone's permanent bailout fund to go ahead. But the Netherlands is likely to remain an awkward, tough-talking member of the single currency area, strongly resisting transfers to eurozone debtors, even if the two main parties end up forming a coalition.

Full article



© Reuters


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