6 Nov 2012

New coalition government in Holland

7:27 am on 6 November 2012

The Netherlands has sworn in a new coalition government led by Prime Minister Mark Rutte.

His VVD party and the Labour party secured the coalition deal after coming out on top in elections on 12 September.

The previous coalition collapsed after ministers failed to agree 16 billion euros of cuts.

Queen Beatrix swore in the new government at the royal palace in The Hague on Monday, in a ceremony that was broadcast live on Dutch television and online for the first time.

The BBC reports that both parties have tried to convince the public that they must make short-term sacrifices to get through the European financial crisis in order to secure a stronger country in the future.

But this means an austerity package aimed at saving 16 billion euros ($US20.5 billion) from the national budget by 2017.