Dutch Election Preview: Seeking Solutions to Structural Issues
Political fragmentation is expected to persist, posing a risk to the favorable economic outlook. The formation of a government with less than four parties seems unlikely.
The Netherlands, currently enjoying economic growth and stable public finances, faces the risk of political indecision undermining its medium-term outlook. The previous government, a coalition of the populist conservative PVV, liberal conservative VVD, centrist NSC, and populist farmers' party BBB, collapsed in June due to disagreements over asylum policy.
- PVV withdrew from the coalition.
- NSC followed in August.
The current caretaker government, composed of VVD and BBB, represents only 32 out of 150 seats in parliament. The economy would benefit from a new government addressing pressing issues.
Political indecision risks undermining the Netherlands’ favourable medium-term outlook
Author's summary: Dutch election preview highlights political fragmentation risks.
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