AMSTERDAM // The Dutch prime minister Jan Peter Balkenende's coalition government collapsed yesterday when the two largest parties failed to agree on whether to withdraw troops from Afghanistan this year as planned.
The fall of the government in the EU member 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 and will eventually prompt new parliamentary elections.
The collapse, the fourth for a cabinet led by Mr Balkenende in eight years, throws into doubt the scope and timing of planned budget cuts for next year as the Dutch economy struggles to emerge from the global downturn.
"I unfortunately note that there is no longer a fruitful path for the Christian Democrats, Labour Party and Christian Union to go forward," Mr Balkenende, who leads the centre-right Christian Democrats, said.
The collapse came after more than 15 hours of talks that lasted until early yesterday, following acrimonious exchanges throughout the week.
Mr Balkenende wanted to extend the Dutch troop deployment in the Nato-led mission 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 in Afghanistan as the alliance seeks to contain the Taliban insurgency.
Nato spokesman James Appathurai said Anders Fogh Rasmussen, the Nato secretary general, respected the Dutch discussion and Nato would not interfere.
"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.
Parliamentary elections could be held midyear 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.
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 Freedom Party, campaigning on mistrust of the government and an anti-immigration ticket, to become the largest or second biggest party in parliament.
Labour could regain some much-needed electoral support by its stance over Afghanistan but that may not be enough to form a left-leaning coalition.
The collapse of Mr Balkenende's coalition effectively nullifies an existing agreement to hold off any economic austerity steps until 2011 and could lead to deeper cuts when next year's budget is unveiled in September.
* Reuters
In numbers: PKK’s money network in Europe
Germany: PKK collectors typically bring in $18 million in cash a year – amount has trebled since 2010
Revolutionary tax: Investigators say about $2 million a year raised from ‘tax collection’ around Marseille
Extortion: Gunman convicted in 2023 of demanding $10,000 from Kurdish businessman in Stockholm
Drug trade: PKK income claimed by Turkish anti-drugs force in 2024 to be as high as $500 million a year
Denmark: PKK one of two terrorist groups along with Iranian separatists ASMLA to raise “two-digit million amounts”
Contributions: Hundreds of euros expected from typical Kurdish families and thousands from business owners
TV channel: Kurdish Roj TV accounts frozen and went bankrupt after Denmark fined it more than $1 million over PKK links in 2013
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Retirement funds heavily invested in equities at a risky time
Pension funds in growing economies in Asia, Latin America and the Middle East have a sharply higher percentage of assets parked in stocks, just at a time when trade tensions threaten to derail markets.
Retirement money managers in 14 geographies now allocate 40 per cent of their assets to equities, an 8 percentage-point climb over the past five years, according to a Mercer survey released last week that canvassed government, corporate and mandatory pension funds with almost $5 trillion in assets under management. That compares with about 25 per cent for pension funds in Europe.
The escalating trade spat between the US and China has heightened fears that stocks are ripe for a downturn. With tensions mounting and outcomes driven more by politics than economics, the S&P 500 Index will be on course for a “full-scale bear market” without Federal Reserve interest-rate cuts, Citigroup’s global macro strategy team said earlier this week.
The increased allocation to equities by growth-market pension funds has come at the expense of fixed-income investments, which declined 11 percentage points over the five years, according to the survey.
Hong Kong funds have the highest exposure to equities at 66 per cent, although that’s been relatively stable over the period. Japan’s equity allocation jumped 13 percentage points while South Korea’s increased 8 percentage points.
The money managers are also directing a higher portion of their funds to assets outside of their home countries. On average, foreign stocks now account for 49 per cent of respondents’ equity investments, 4 percentage points higher than five years ago, while foreign fixed-income exposure climbed 7 percentage points to 23 per cent. Funds in Japan, South Korea, Malaysia and Taiwan are among those seeking greater diversification in stocks and fixed income.
• Bloomberg
Company Profile:
Name: The Protein Bakeshop
Date of start: 2013
Founders: Rashi Chowdhary and Saad Umerani
Based: Dubai
Size, number of employees: 12
Funding/investors: $400,000 (2018)
The specs: 2018 Peugeot 5008
Price, base / as tested: Dh99,900 / Dh134,900
Engine: 1.6-litre turbocharged four-cylinder
Transmission: Six-speed automatic
Power: 165hp @ 6,000rpm
Torque: 240Nm @ 1,400rpm
Fuel economy, combined: 5.8L / 100km
Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
Skewed figures
In the village of Mevagissey in southwest England the housing stock has doubled in the last century while the number of residents is half the historic high. The village's Neighbourhood Development Plan states that 26% of homes are holiday retreats. Prices are high, averaging around £300,000, £50,000 more than the Cornish average of £250,000. The local average wage is £15,458.