The Dutch Queen has asked the prime minister to dissolve parliament so that elections can be held on September 12, the government said in a statement, paving the way for months of political and economic uncertainty in a core euro zone member.

Rutte's minority government collapsed on Monday after crisis talks on crucial budget talks fell through at the weekend.

The Netherlands, once considered one of the more stable European countries and a core euro zone member, now faces a protracted period of uncertainty with an election expected to take place in over four months' time.

(Reporting by Sara Webb)