Netherlands' Prime Minister Mark Rutte has announced his resignation, along with his entire cabinet. In a press conference from the Hague, Rutte confirmed he would travel to the royal Huis ten Bosch palace to give his official resignation letter to King Willem-Alexander. 

The decision was not entirely unexpected following a scandal in which parents were falsely accused of benefit fraud, as Rutte admitted the system had gone "terribly wrong."

Speaking at a hastily convened news conference the Rutte who was first elected in 2010 said, "The rule of law must protect its citizens from an all-powerful government, and here that's gone terribly wrong."

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The Liberal leader is resigning after extended public outrage over what has become known as the Supplement Affair, which had already led to Labor Party leader Lodewijk Asscher stepping down. 

Rutte called a cabinet meeting to ask his coalition partners if they still support his government, according to Dutch media. It seems likely that Rutte has calculated the political fall-out of a cabinet collapse as less damaging than defeat over the scandal in parliament next week. 

A "No Confidence" vote on the floor of the legislature would likely bring on the fall of the government, according to NRC analysis. The current coalition will most likely continue as a caretaker government until the general election that has been scheduled for March 17, 2021.

No more Teflon Mark?

Mark Rutte's 10-year spell as Dutch leader may be brought to an end by the scandal, but it's equally likely he will return to his position before too long. 

With a general election just two months away, Rutte's resignation will be in name only, as he is ahead in the polls and is expected to continue as a caretaker premier at least until the ballots are counted. 

Whether the 53-year-old can continue after March is yet to be seen, but the fact this scandal over child benefits has led to such widespread condemnation, even from himself, could note the beginning of the end for the plain-speaking PM. 

That didn't seem to faze the bike-riding leader, though, as he arrived for the monumental meeting via his usual cycle lane. 

What is the Supplement Affair?

The scandal dates back to a former Dutch government coalition, also led by Rutte, in which Lodewijk Asscher served as deputy PM. 

Between 2012 and 2017, at least 20,000 Dutch citizens were pursued by tax authorities over alleged benefits fraud, which were later proven to be baseless. 

"Yes, I was minister of Social Affairs during the previous large crisis that faced our country. No, I did not know that the Tax Authority started an unjust hunt of thousands of families," Asscher said, following his own resignation on Thursday.

Government officials apologized for the scandal and earmarked $500 million in March 2020 to compensate affected parents. Today Rutte admitted his government did not inform parliament as it should have done. 

"Innocent people have been criminalized, their lives have been destroyed and the House has been incorrectly and incompletely informed about this," he said. 

What next? 

At least one cabinet member, minister for economic affairs Eric Wiebes, said he would not rejoin a caretaker cabinet. But PM Rutte said he had not considered stepping down – either from his political party leadership or his position as leader of a caretaker cabinet. 

Rutte said the cabinet would continue its work in the fight against COVID-19 as long as it is supported by a majority in the Dutch parliament. 

Although Rutte has been the target of criticism from European leaders such as Emmanuel Macron and Viktor Orban – he was described as "Mr No" in political circles for his role as part of the "Frugals" group in the European Union – he had created a sense of security and calm around his government, which was widely seen as very competent. 

But the child benefits scandal threatens that reputation, and potentially even Rutte's own job.