In The Hague, November 22 is cited as a possible date for new elections. This should be followed by a training period, so that for the time being we are still dealing with an interim cabinet. And this has important consequences, economists think.
According to ING’s chief economist, Marieke Blom, the impact of the government’s fall will be smaller than expected in the short term. “This will make a small difference, because we think the government will spend a little less than anticipated. This will dampen economic growth somewhat. People who are currently unable to get a job through the government will find jobs in the business community.’
‘The fall of the government causes uncertainty among entrepreneurs’
Blom expects more long-term problems. ‘The cabinet was busy preparing a number of important transitions: labor market and housing policy, for example. Tomorrow we won’t notice that impact immediately, but it will be much greater. This creates uncertainty among entrepreneurs, who will therefore invest less in energy infrastructure, for example.’
ESB economists’ editor-in-chief Jasper Lukkezen agrees with Blom’s words. According to him, the government’s role in the economy has changed. «Once there was the joke of the economist: if there is no government, it’s good for business. This has changed as we have given an increasing role to government in recent years. No government is therefore no longer so good for business.’
Blocked
It has happened six times since 2002 that the Netherlands has had to deal with an interim cabinet. However, Lukkezen notes that the flag now hangs differently than it did before. According to him, this is mainly due to the fact that a number of important files have been closed, such as the impossibility of building now due to nitrogen standards.
Also, according to Lukkezen, there is more uncertainty about the course that will be followed after the Rutte IV era. “We don’t know at all what kind of cabinet we will have. It was always thought that after the election the seats between the middle parties would move slightly. Now there may be a very long period of political uncertainty, because they simply won’t make it.’
Source: BNR
Andrew Dwight is an author and economy journalist who writes for 24 News Globe. He has a deep understanding of financial markets and a passion for analyzing economic trends and news. With a talent for breaking down complex economic concepts into easily understandable terms, Andrew has become a respected voice in the field of economics journalism.
