Dutch PM says country will vote on contribution to bailout funds

City A.M. Reporter
DUTCH lawmakers will have to approve their country’s participation in a Eurozone deal to lend up to €100bn (€81bn) to Spanish banks, the Dutch Finance Ministry said yesterday.

Dutch Prime Minister Mark Rutte said Spanish banks had been at risk of collapse and the Netherlands had to support the aid package to protect its investments in Spain and trade relations.

“There is also a lot of (Dutch) pension money invested in Spain via banks and pension funds. The collapse of Spanish banks, which is currently at risk of happening, would have big consequences for the Netherlands,” Rutte said.

The Dutch lower house will be asked to approve the Dutch participation in the deal, a spokeswoman of the Dutch Finance Minister Jan Kees de Jager said. If parliament voted against the deal, it meant the Netherlands would not take part in it, though the rejection would not scupper the whole deal, she said.

A majority of Dutch lawmakers have so far supported all European bailouts, but the lawmakers have been increasingly critical of the cost of the rescue packages.