Dutch September vote leaves months of uncertainty

Page last updated at 03:05 GMT, Wednesday, April 25, 2012 - 08:05 EST

Reuters:

The Netherlands has called an election for September 12, leaving the country open to months of political and economic turbulence after the government collapsed in a row over budget cuts that are needed to meet strict EU limits.

The euro zone's fifth-largest economy has been one of its most stable but the government became the latest victim of resistance to EU-imposed austerity on Monday when it lost the support of its main ally, bringing political chaos.

Financial markets have been unsettled by the inability of one of Europe's few AAA-rated countries to agree the same deficit-cutting it has demanded of others.

Dutch bonds fell sharply on Monday but have since rallied as investors say the economy is fundamentally sound.

Read the whole story: Reuters