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Edition: U.S. Article Comments (1) Slideshow Video Save Email Print Reprints Most Popular Most Shared Bad news for record lottery "winner" 16 Feb 2010 Credit cards implicate Mossad in Dubai hit: report 9:57am EST SCENARIOS-Dutch government collapses 5:23am EST Pakistan kills 30 militants in air strike 8:06am EST Cat food latest weapon against Australia's cane toads 19 Feb 2010 Tiger Woods case puts spotlight on "sex addiction" 19 Feb 2010 The Internet will make you smarter, say experts 19 Feb 2010 FDA reports says Avandia can hurt heart: report 19 Feb 2010 For Apple suppliers, loose lips can sink contracts 17 Feb 2010 Microsoft phone system hits reset on digital music 19 Feb 2010 deals Bloodied firms sit tight for IPO return Private equity firms are putting floatation candidates back in the box after receiving knock backs from angry fund managers, and will try again in a couple of years when they hope the market will be more receptive. Full Article Hedge funds raise bets in Greek bond crisis Dutch government falls over Afghan troop mission Reed Stevenson and Aaron Gray-Block AMSTERDAM Sat Feb 20, 2010 10:35am EST Factboxes Factbox: Dutch mission in Afghan province Uruzgan Fri, Feb 19 2010 Factbox: Collapse of Dutch government, what opinion polls say Fri, Feb 19 2010 Related News Scenarios: Dutch government collapses 5:26am EST Related Video Dutch government falls 3:47am EST < 1 / 3 > View Full Size AMSTERDAM (Reuters) - Dutch Prime Minister Jan Peter Balkenende's coalition government collapsed on Saturday when the two largest parties failed to agree on whether to withdraw troops from Afghanistan this year as planned. World | Bonds The fall of the government in the EU country, just two days short of the coalition's third anniversary, all but guarantees that the 2,000 Dutch troops will be brought home this year. The collapse, the fourth for a cabinet led by Balkenende in eight years, throws into doubt the scope and timing of planned budget cuts for next year as well. "I unfortunately note that there is no longer a fruitful path for the Christian Democrats, Labour Party and Christian Union to go forward," Balkenende, who leads the center-right Christian Democrats, told reporters. It followed more than 15 hours of talks and acrimonious exchanges throughout the week. Balkenende officially offered Queen Beatrix the resignations of the Labour ministers on Saturday morning, leaving the option open for a minority cabinet or a caretaker government until elections can be held. Balkenende wanted to extend the Dutch deployment in Afghanistan past an August deadline, but Deputy Prime Minister Wouter Bos's Labour Party opposed any extension. NATO had asked the Netherlands, among the top 10 contributing nations to the mission, to investigate the possibility of a longer stay. NATO spokesman James Appathurai said NATO Secretary General Anders Fogh Rasmussen respected the Dutch discussion. "The Secretary General continues to believe that the best way forward for the mission would be a new smaller Dutch mission to consolidate the progress that the Dutch have made until now, and to help the process of transition to Afghan lead," he said. Abdullah Abdullah, a former Afghan foreign minister under Hamid Karzai, said in an interview he was "concerned and disappointed" with the Dutch government's collapse. MID-YEAR ELECTIONS Parliamentary elections could be held mid-year at the earliest, but would probably be followed by months of talks between parties to form a government. A new government may prove difficult to establish, with opinion polls suggesting four or five parties may be needed to secure a majority coalition in the 150-seat parliament. "We are in the middle of a financial crisis and holding elections now would lead to a lot of insecurity for the public and investors," said Andre Krouwel, professor of political science at Vrije Universiteit in Amsterdam. "It is not the time to hold national elections." Right-wing legislator Geert Wilders's Freedom Party, which has called for an end to the Afghan mission, could be the big winner at the next election. Opinion polls tip the party, campaigning on an anti-immigration ticket, to become the largest or second biggest party in parliament. "There are enormous problems in the Netherlands today, whether it's about crime, about mass immigration and Islam, or it's about high taxes, so I think it's a wonderful day and people can choose for the change in the policy of the Netherlands," Wilders told reporters in The Hague. Labour could regain some much-needed electoral support by its stance over Afghanistan but that may not be enough to form a coalition. Bos was campaigning in Utrecht on Saturday for municipal elections due March 3. AUSTERITY MEASURES The collapse of Balkenende's coalition effectively nullifies an existing agreement to hold off any economic austerity steps until 2011 and could lead to deeper cuts in September's budget. This week, the Dutch government's main think-tank raised its 2010 budget deficit forecast to 6.1 percent of gross domestic product but called for a 2011 deficit of 4.7 percent, implying that steep spending cuts will be needed. That could crimp the Dutch economy, which just entered a recovery after four quarters of contraction. ID:nLDE61B0TN] "The Dutch corporate sector will feel the consequences of this for a long time. Internationally, we've suffered a loss of face," said Arie Visser, 77, a retiree who spent his Saturday at a bike repair shop reading a newspaper about the collapse. The Dutch mission in Afghanistan, which started in 2006, is scheduled to end in August with the last of the troops leaving in December. Most are deployed in Uruzgan province. "A withdrawal will damage the reputation of the Dutch as a reliable partner that is willing and able to contribute to important military missions," said Edwin Bakker, a senior research fellow at the Clingendael Institute in The Hague. (Additional reporting by Ben Berkowitz, Harro ten Wolde and Gilbert Kreijger in Amsterdam, Sophie Hardach in Paris, Svebor Kranjc in The Hague and Bate Felix in Brussels; Editing by Angus MacSwan) World Bonds Comments See All Comments (1) | Post Comment Feb 20, 2010 8:55am EST Amazingly, the origins and purpose of all this international, global chaos are predicted and accounted for in the prophetic, political, Conspiracy Thriller book, BLACK ROAD 2012, which I bought on amazon, and was a real goose-bumpy, totally absorbing ride: http://tinyurl.com/amazon-BLACK-ROAD-2012 Friedberg Report As Abusive See All Comments (1) Add a Comment More from Reuters Ex-Nixon chief of staff Alexander Haig dead at 85 WASHINGTON (Reuters) - Alexander Haig, a former Army general who became White House chief of staff during the Watergate scandal and was secretary of state during the Reagan administration, died on Saturday at the age of 85. Obama wants healthcare summit to find common ground Blackstone, Hilton lenders agree on debt: source Up to 25 billion euros in aid mulled for Greece: report New Iran measures needed if no progress: French PM Government was told of Toyota claims in 2004: insurer | Video » More Top News Top five stories of the week A potty-mouthed John Mayer and an unfortunate surgery mishap were among the most buzzed-about stories on Reuters.com. Catch up on all the headlines here. Full Article Slideshow: Best pictures of the week World Vancouver 2010: Winter Olympic Games Hockey, speedskating and Alpine skiing dominate the schedule during weekend action as the Winter Games continue in Vancouver. Full Coverage Olympic lingo has been "sick" Olympics Notebook: Vancouver 2010 2010 winter olympics © Copyright 2010 Thomson Reuters Editorial Editions: Africa Arabic Argentina Brazil Canada China France Germany India Italy Japan Latin America Mexico Russia Spain United Kingdom United States Reuters Contact Us Advertise With Us Help Journalism Handbook Archive Site Index Video Index Analyst Research Mobile Newsletters RSS Podcasts Widgets Your View Labs Thomson Reuters Copyright Disclaimer Privacy Professional Products Professional Products Support Financial Products About Thomson Reuters Careers Online Products Acquisitions Monthly Buyouts.com Buyouts Europe: Buyouts Conferences: Venture Capital Journal EVCJ International Financing Review International Securitisation Report Project Finance International PEhub.com PE Week Thomson Reuters is the world's largest international multimedia news agency, providing investing news, world news, business news, technology news, headline news, small business news, news alerts, personal finance, stock market, and mutual funds information available on Reuters.com, video, mobile, and interactive television platforms. Thomson Reuters journalists are subject to an Editorial Handbook which requires fair presentation and disclosure of relevant interests. NYSE and AMEX quotes delayed by at least 20 minutes. Nasdaq delayed by at least 15 minutes. For a complete list of exchanges and delays, please click here.

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