Holland will attempt to claw back confidence after the collapse of the government by selling of 2.5bn Euros of debt. It is hoped the move will steady a jittery Euro.
The country sold 1.995 bn euros of two and 25-year government bonds this morning after the resignation of the prime minister, Mark Rutte, last night. The sell-off raised 2bn euros, after a target of raising 1.5bn to 2.5bn euros.
The development went some way towards calming market fears. The immediate reaction in the markets was positive, with Dutch sovereign debt strengthening slightly.
Monday was the worst day for the Euro in a week after a succession of events on the continent, including the prospect of Socialist French presidential candidate, Francois Hollande, coming to power, and the fall of the Dutch coalition government.
The events, which were exacerbated by bearish manufacturing data, sparked a half-percent tumble in the value of the currency, with the FTSE 100 dropping by nearly two per cent and the German DAX losing more than three percent.
Traders rushed to sell off the Euro and continental shares in order to snap up US dollars, which are seen as safer.
This morning, there were signs that the Euro had begun to slowly rise again in early trading.
But the political crisis in the Netherlands continues to rumble on, with Mr Rutte due to address parliament in the Hague this afternoon for a debate on how to proceed with austerity measures and the timing of elections.
The former prime minister tendered his resignation after the government failed to reach an agreement following seven weeks of austerity negotiations.
A row erupted over the weekend when the anti-Freedom Party refused to agree with the centre-right coalition on how to cut 14 ro 16 billion euros from the budget and get the Dutch deficit down to the EU target next year.