Dutch government quits after failing to agree deficit action plan

The Dutch government, one of the most vocal critics of European countries failing to rein in their budgets, quit after failing to agree on a plan to bring its own deficit in line with EU rules.

Prime minister Mark Rutte tendered the resignation of his entire cabinet to Queen Beatrix, effective immediately, after Rutte informed her talks on a new austerity package collapsed at the weekend.

Rutte is to debate with parliament today on whether and how his caretaker government can still improve the budget, and when to schedule new elections. No date was announced, but opposition lawmakers called for a vote in late June.