The Dutch government collapsed at the weekend, making it the first European and Nato administration to fall because of the war in Afghanistan.

The fourth fall of a government under the prime minister, Jan-Peter Balkenende, in eight years could end his career and is certain to usher in a period of political uncertainty that could bring big gains for the extreme anti-Muslim right.

The end of Balkenende's centrist coalition, mainly of Christian and social democrats, means that the almost 2,000 Dutch troops in Afghanistan, based around Uruzgan, south-west of Kabul, will start pulling out in August and be withdrawn by the end of the year.

"If nothing else will take its place, then [the Afghan mission] ends," Balkenende told Dutch television yesterday. "The image of the Netherlands is far from flourishing abroad. They do not understand what we are doing."

The Netherlands could set a precedent, encouraging other European countries to get cold feet about their presence in Afghanistan.

"The moment the Netherlands says as sole and first country we will no longer have activities at the end of 2010, it will raise questions in other countries and this really pains me," Balkenende said.

While the prime minister sought to extend the Afghan mission, under strong pressure from Nato allies and Washington, his Labour party coalition partner opposed the extension and walked out of crisis talks on Saturday, spelling the end of the government two years into its term.

The Dutch withdrawal is a blow to President Barack Obama and comes as the US and Nato troops mount their biggest operation in Afghanistan for years.

The Americans have been pressing for more European troops in Afghanistan and voiced satisfaction with European pledges of some 9,000 extra forces in recent weeks.

But the Americans are demanding that the Europeans supply 2,000 trainers for the Afghan army and police.

"The one most important shortfall is in the category of trainers," said a senior US official. "We'd like them [Europeans] to step up. We'd like every ally to put up more trainers. This is critical."

The Dutch Labour party's vehement opposition to remaining in Afghanistan is popular, bringing it instant opinion poll gains at the weekend. But a general election is expected in May, with all eyes on the controversial populist anti-Islam maverick, Geert Wilders, who is poised for a major electoral breakthrough.

Wilders' Freedom party currently has nine of 150 parliamentary seats, but he came second in last year's European Parliament elections and an opinion poll at the weekend put him neck-and-neck for an election victory.

"We can have excellent results in the next few months and it can only change the Netherlands for the better," Wilders told Reuters.

According to the weekend poll, Balkenende's Christian democrats would take 26 to Wilders' 24 seats in parliament.

The fourth fall of a Balkenende government in eight years suggests he could be replaced as Christian democrat leader.

"It is embarrassing," said the NRC Handelsblad newspaper. "There is good reason to doubt [Balkenende's] qualities as a leader."