Posted on 04/23/2012 4:38:42 PM PDT by bruinbirdman
A backlash against proposed austerity measures upended the government of the Netherlands on Monday, highlighting the growing peril facing efforts across Europe to tame the region’s financial crisis.
The collapse of Prime Minister Mark Rutte’s governing coalition came after the populist Freedom Party, led by euro-opponent Geert Wilders, abandoned negotiations over ways to meet deficit targets. National elections are now expected to be held in June.
The Netherlands, which prides itself on fiscal prudence, has been one of the strongest advocates in Europe for strict deficit limits throughout the region. The Dutch government’s inability to raise the retirement age and take other budget-cutting steps could signal trouble for the German-led campaign for European austerity.
This blowback could become even clearer as voters in France, Greece and Ireland head into a month of elections that amount to a referendum on Europe’s economic direction. The coming round of elections “could mark the beginning of a change to the entire euro zone crisis management,” analysts at ING wrote.
The fall of the Dutch government sent European stock markets down sharply, with the German Dax plunging 3.4 percent. U.S. markets were off more than 1 percent.
The Netherlands — one of the few remaining European countries with a AAA credit rating — is on the verge of missing its budget targets. The Dutch upheaval is the latest development that shows the European debt crisis, which appeared to be ebbing in recent months as borrowing costs for cash-strapped governments declined, continues to pose a threat.
Last week, the International Monetary Fund
(Excerpt) Read more at washingtonpost.com ...
Unbelievable. I can’t imagine people seeking out national destruction just so they can get a welfare check for a few months more. Of course, we’ve got Rombama running for President so I guess we’re headed down the same path.
This is happening throughout Europe. Much of the EU has become very accustomed and comfortable with a standard of living made possible not through productive endeavors but with two generations of deficit spending and borrowing. The average voter does not understand the economic nuances and has absolutely no tolerance for “austerity”. The IMF and European central banks are selling gold and begging funds to finance futile bailouts. The EU and euro are doomed. Germany will not allow a debasement of the currency since they are savers and such a debasement would be a defacto confiscation of their wealth. Eventually Germany will shift its pivot toward resource rich Russia. Most of Europe has a very poor economic and polical prognosis. Sadly the US has greater advantages and resources but is not in much better condition. Deficit spending squanders capital and leads to poverty.
Actually, it was the far-right that caused the breakdown. I don’t think they are gunning for welfare checks.
I think they are misusing the word “austerity” when they are still mired in massive deficits.
I bet it close to her last check.
What’s the inside dope?
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