The Netherlands is to hand back the rights to organise the 2019 European Olympics because government and local authorities say it would be ‘irresponsible’ to finance the event.

The organising committee had agreed to give the games to the Netherlands last month – it was the only candidate – but now Holland too has pulled out, broadcaster Nos says on Wednesday.

Talks between sports minister Edith Schippers, provincial and local government and the Dutch Olympic committee and athletics federation NOC*NSF failed to reach agreement over the €57.5m budget to stage the event.

The sports ministry has now issued a statement saying it would be ‘irresponsible’ to invest in the project because it would make ‘too large a demand’ on scarce resources.

In addition, the ministry said, there are also doubts about how many top athletes would take part. The European athletics and swimming championships are due to take place in the same period.

Rotterdam and Utrecht city councils said earlier they were not prepared to be involved.

NOC*NSF director Gerard Dielessen said the decision is unexpected. ‘This is extremely disappointing. We are not at all happy about it,’ Dielessen told broadcaster Nos. ‘This is a missed opportunity for sport and society.’

The first European Games take place in Baku in Azerbaijan and start on Friday.