Potential Implications of the Dutch Election on the Economy – Dun & Bradstreet

Ben Kleber, Dun & Bradstreet:

“Today, we are seeing one of the most important Dutch elections for a long time, with economic and political instability creating a sense of uncertainty over one of Europe’s most historic nations. Anti-EU sentiment, following Britain’s decision to leave the EU, has given hope to the populist PVV party and its leader Geert Wilders, who has captured most of the headlines recently with his outspoken criticism of the EU and his desire to take the Netherlands out of the EU bloc. A Wilders win might have implications for the future of the EU: it could create the opportunity for other European nations to take advantage of the short-term uncertainty and could herald a break-up of the EU in the longer term.

“The economic implications of a Wilders success in the Netherlands might have a destabilising effect on the euro, as the head of the PVV has threatened to take the Netherlands out of the Eurozone – however, even if Wilders does win the election it is very unlikely that he will gain enough seats in Parliament to form his own government. Moreover, other political parties have ruled out forming a coalition with the PVV. If Mark Rutte continues as prime minister, it is likely the same challenges confronting the EU and the euro will continue: pressure to develop the right economic institutions to support a common currency across such a diverse range of countries, and the issue of uneven development across nations in the Eurozone.

“With elections in EU powerhouses France and Germany later this year, we could be facing a very different economic and political landscape. But, just as with Brexit, businesses across the continent should remain calm and continue as normal.”