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Edition: U.S. Article Comments (0) Slideshow Video Save Email Print Reprints Most Popular Most Shared BP eyes showdown with US govt on liability-BP source 09 Jun 2010 StanChart makes case for PetroChina-BP deal 09 Jun 2010 Next bubble: Corporate bonds..or stocks 09 Jun 2010 PRECIOUS-Gold steadies after falling on Bernanke's comments 09 Jun 2010 U.N. council hits defiant Iran with new sanctions | Video 09 Jun 2010 WRAPUP 12-BP shares plunge, U.S. threatens new penalties 09 Jun 2010 AT&T: iPad user data exposed via security flaw 09 Jun 2010 "The A-Team" a risible b-movie 09 Jun 2010 U.S debt to rise to $19.6 trillion by 2015 08 Jun 2010 Chicago ends 49 years of Stanley Cup hurt 3:28am EDT U.S debt to rise to $19.6 trillion by 2015 08 Jun 2010 Next bubble: Corporate bonds..or stocks 09 Jun 2010 McDonald's recalls 13.4 million "Shrek" drinking glasses 04 Jun 2010 Waiter, there's a potential carcinogen in my soup 09 Jun 2010 Poland okays forcible castration for pedophiles 25 Sep 2009 Scientists use Calvin Klein cologne to lure jaguars 09 Jun 2010 Woman striving to be world's heaviest | Video 09 Jun 2010 BP eyes showdown with US govt on liability-BP source 09 Jun 2010 Shakira gives dance lesson in South Africa township 09 Jun 2010 PersonalFinance: The rising price of raising kids 09 Jun 2010 Austerity-minded Liberals lead in Dutch poll Reed Stevenson and Gilbert Kreijger AMSTERDAM Thu Jun 10, 2010 2:49am EDT Related News Snap analysis: Election puts Dutch politics in flux 12:42am EDT Analysts view: Liberals lead Dutch poll, policy deadlock likely 2:49am EDT Related Video Dutch vote in 'austerity' election Wed, Jun 9 2010 1 / 2 Supporters of the Dutch Liberal Party (VVD) react after listening to the initial results of the general elections in The Hague June 9, 2010. Credit: Reuters/Toussaint Kluiters/United Photos AMSTERDAM (Reuters) - Austerity-minded Liberals won a narrow one-seat lead in the Dutch election, putting them in pole position to form a coalition that must tackle a ballooning budget deficit, preliminary results showed on Thursday. World The election ousted Christian Democrat Prime Minister Jan Peter Balkenende from eight years in office, and Geert Wilders's anti-immigration Freedom Party nearly doubled its seats to be the third-largest parliamentary group and a possible kingmaker. With 98 percent of the votes counted, the rightist-leaning Liberals had 20.4 percent of total votes or 31 seats in the 150-member parliament against 19.6 percent or 30 for the Labour Party, which wants slower and fewer cuts to tackle a deficit expected to reach 6.6 percent of GDP this year. This would give Liberal leader Mark Rutte a mandate to form a coalition and become prime minister, but sticking to his austerity policies could prove tough because he needs at least three other parties to secure a parliamentary majority. Earlier, exit polls had showed the Liberals and Labour running neck-and-neck in an election dominated by debate on fiscal austerity after the euro zone's stability was threatened by sovereign debt woes plaguing Greece. Balkenende conceded defeat for his Christian Democrats when voters turned against the party, nearly halving its seats from 41 to 21. He resigned as party leader. Wednesday's election was triggered when his Christian Democrat-Labour coalition government collapsed in a row over extending the deployment of Dutch troops in Afghanistan. Wilders and his Freedom Party gained 10 seats to come third behind the Liberals and Labour with 21, reflecting concern in the country about immigration and foreign policy. "More security, less crime, less immigration, less Islam -- that is what the Netherlands has chosen," Wilders said. SPENDING CUTS The Liberals are calling for the steepest spending cuts of up to 39 billion euros ($52 billion) over the next decade but may have to compromise if they are to form a coalition. "The Netherlands can emerge stronger from the crisis by taking measures now," Rutte, a 43-year-old former human resources manager who once worked at Anglo-Dutch consumer goods giant Unilever, told reporters. Labour, led by former Amsterdam mayor Job Cohen, could conceivably join the Liberals in a coalition but as the second-biggest election winner it is likely to want concessions. "Although circumstances are difficult, we again will take our responsibility to make sure our country continues down the social road," said Cohen. Marcel Boogers, political science professor at Tilburg University, said a right-left combination -- sometimes described as a "purple coalition" -- was a possible outcome. "That might be a viable coalition," Boogers said. Although the euro zone's fifth-largest economy enjoys one of the highest debt ratings in the currency bloc, borrowing costs have edged higher over its ability to pay back loans. Investor jitters and a flight to more secure debt have increased the spread between Dutch bonds and their German benchmarks to 40 basis points, up from 15 to 20 a week ago and just 7 points in March. Casting aside decades of stern fiscal policies, the government took over the country's biggest bank ABN AMRO in 2008 after its buyer Fortis collapsed, spending more than 26 billion euros to prop it up. It spent more later to boost the economy, offer tax relief and support other financial groups, heightening investor concern over its finances. (Additional reporting by Harro Ten Wolde, Catherine Hornby, Bart Meijer; Editing by Ralph Gowling) World Add a Comment *We welcome comments that advance the story directly or with relevant tangential information. We try to block comments that use offensive language or appear to be spam and review comments frequently to ensure they meet our standards. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. © 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 Reader Feedback 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 Venture Capital Journal International Financing Review Project Finance International PEhub.com PE Week FindLaw 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. 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