Dutch Prime Minister Mark Rutte and his Cabinet have tendered their resignation to Queen Beatrix of the Netherlands, following the collapse of austerity talks between the ruling multi-party coalition and the right-wing “Freedom Party.”

Dutch media report that the Cabinet’s resignation will inevitably lead to the dissolution of the coalition government and the House of Representatives, a creation of an interim Cabinet and early parliamentary elections.

Rutte submitted his Cabinet’s resignation, after the right-wing Freedom Party pulled out of nearly two-month talks with his center-right coalition over a plan to cut the budget by 15 billion euros each year.

Dutch news outlets predict that the ruling and opposition parties will agree to hold general elections around the end of summer vacation.