It took almost 300 days to form the coalition of Mark Rutte, the previous prime minister, and this shock win is raising eyebrows as Wilders’s party believes in leaving the European Union (EU), tightening immigration laws, and higher taxes for banks.
Many feel this will alter the collaborative image associated with the Netherlands. In the past, Rutte played a core role in the EU and contributed to its budget. Dutch bank shares fell on Thursday in response to the election results. Analysts, however, believe Wilders will have to work with pro-EU parties if he wants a successful government.
Despite the knee-jerk uncertainty, the Euro remained steady and gained 0.3% at a stage on Thursday. An even Euro performance does not, however, address other issues on the table.
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Those in the Netherlands who opposed a critical pension fund reform, are now the majority party in parliament. The Dutch pension sector, worth about €1.5tn and the largest in Europe, can move new and accrued savings to a defined contribution system under this reform. Wilders wants to cancel this while others, such as the New Social Contract Party, want to give fund participants a choice in switching to the new system or not.
Banks drew the shortest end of the election-win reaction stick. Both ING (INGA.AS) and ABN AMRO (ABNd.AS) fell by as much as 2%. Those involved are concerned by what the higher taxes may entail.
