There has been a budget breakthrough in the Netherlands, days after the country’s government collapsed over cuts.
Prime Minister Mark Rutte had called elections for September after a stand off over next year’s financial plan.
Political parties have now reached a deal on the 2013 budget, which it is said will slash the Dutch deficit to the EU target ceiling of 3%.
It has the support of most members of the Dutch parliament, after the opposition Green Left party gave its backing.
The government collapsed after its main ally, Geert Wilders’ Freedom Party, refused to sign up to a deal that would have cut more than 14 billion euros off the annual budget.
The Netherlands is facing a deficit of 4.6% next year if savings are not made. It has been in recession since last summer.