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Opposition lawmakers say they are prepared to work with Rutte to draw up a 2013 budget.

However, Diederik Samsom, leader of the opposition Labor Party, signaled he would not insist on bringing the Dutch deficit back in line with EU norms next year.

“As far as we are concerned, you don’t have to reach 3 percent by 2013,” he said.

Although the Netherlands has relatively low levels of national debt, its economy is in recession and it is expected to post a deficit of 4.6 percent in 2012.

The package Rutte had been negotiating with Wilders would have slashed foreign aid and hastened a planned increase in the retirement age to 66 from 65.

Wilders, who is publishing a book in the U.S. next week about his struggle against Islam, said abruptly Saturday he could not support the package because it was unfriendly to the elderly.

Yields on Dutch bonds were up 0.11 of a percent higher than they were before the weekend. Netherlands government bonds are trading around 2.35 percent for 10-year debt, about 0.6 percentage points more than Germany.

Ratings agency Fitch last week warned the Netherlands stands to lose its AAA credit rating depending on the outcome of the budget talks that failed Saturday.

Central Bank President Knot has predicted Dutch interest rates will increase by around 1 percent if the country’s rating is cut, making budget reform vital.

Sterling reported from Amsterdam.