Dutch Election Preview
Political fragmentation is expected to continue, posing a risk to the Netherlands' favorable economic outlook.
The country is unlikely to have a government with less than four parties, which may lead to political indecision and undermine the medium-term outlook.
The previous government, a coalition of the PVV, VVD, NSC, and BBB, collapsed in June due to disagreements over asylum policy.
- PVV withdrew from the coalition.
- NSC followed in August.
The current caretaker government, consisting of VVD and BBB, represents only 32 out of 150 seats in parliament.
Political indecision risks undermining the Netherlands’ favourable medium-term outlook
The economy would benefit from the new government addressing structural issues.
Author's summary: Dutch election may impact economy.
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