The Social Economic Council - made up of representatives from the unions and employers' organisations - says it has failed to agree on an alternative to the cabinet's plan to gradually raise the retirement age to 67.

Both sides have accused each other of blocking an agreement. Earlier this year the government gave the SER until 1 October to come up with alternative to plans to gradually raise the retirement age to 67.

On Tuesday evening, the unions and employers' association presented rival alternatives to the government's plan. Earlier this evening - well before the midnight deadline - employers' organisations announced that talks on a joint alternative had failed and accused the unions of blocking all proposals to raise the pensionable age from the outset. The unions have responded furiously to the employers' organisations withdrawal from talks.
 

Prime Minister Jan Peter Balkenende and Finance Minister Wouter Bos say they are disappointed by the SER's failure to produce a workable alternative. However, this does mean that the government can go ahead with its plans to gradually raise the retirement age.