Dutch Election Preview: Seeking Solutions to Structural Issues
Political fragmentation is expected to persist, posing a risk to the favorable economic outlook in the Netherlands.
The country is unlikely to have a government with less than four parties, which may lead to political indecision and undermine its medium-term outlook despite strong economic growth and public finances.
A previous government, consisting of the PVV, VVD, NSC, and BBB parties, collapsed in June due to disagreements on asylum policy. The PVV and NSC subsequently withdrew from the coalition, leaving a caretaker government of VVD and BBB representing only 32 out of 150 seats in parliament.
The new government will need to address pressing issues to benefit the economy.
An unhappy marriage came to an early end.
Author's summary: Dutch election preview amid political fragmentation.
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