Dutch Cabinet Rejects Freedom Party Ultimatum Over ESM Decision
The Dutch caretaker Cabinet rejected an ultimatum by Freedom Party leader Geert Wilders, who opposes aid to other euro-area countries, to postpone decisions on the ratification of the European Stability Mechanism.
The lower house of parliament in The Hague will begin debating the ESM tomorrow and a majority may approve it as early as May 23. Wilders, who brought down the minority government last month, will now take the Cabinet to court, he said in a text message today.
The ratification of the treaty to allow the setting up the permanent bailout fund is a transfer of power to the European Union and has to be postponed until after early parliamentary elections on Sept. 12, Wilders said last week, giving the government until this afternoon to delay the proceeding.
Euro-area parliaments should not delay approval of the single currency’s permanent bail-out fund to avoid market turbulence, Klaus Regling, the chief executive officer of the fund’s predecessor unit, the European Financial Stability Facility, said May 7.
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