Dutch prime minister, Cabinet resign en masse

LONDON — The Dutch government has become the latest to fall because of Europe’s stubborn debt crisis, which appears to be flaring up again after a temporary lull.

Prime Minister Mark Rutte and his Cabinet resigned en masse Monday after they failed to clinch a deal with other parties over austerity cuts to reduce the Netherlands’ budget deficit. It was an embarrassing development for the Dutch, who have repeatedly lectured southern European nations on the need to rein in public spending but could not agree on such a plan themselves.

The euro debt crisis seems on the verge of erupting again after a few months of relative calm. The soothing effect of cheap long-term loans from the European Central Bank to the region’s financial institutions is wearing off, and analysts are asking whether the harsh public austerity prescribed bygermany is worsening the crisis instead of solving it.

The Dutch have sided with Berlin in the demand that financially troubled European nations curb their spending, but the Dutch government found itself in the hot seat when official figures showed that its own deficit this year was on track to hit 4.6 percent of gross domestic product, well above the 3 percent limit for eurozone countries.

Negotiations over what to cut and by how much have consumed Dutch political leaders for weeks. The talks fell apart over the weekend, prompting Rutte’s resignation Monday.

Rutte will remain head of a caretaker administration until elections are held.