The Netherlands exchange traded fund is in focus following the general election earlier this month. The center-right VVD party won a sufficient number of votes as Prime Minster Mark Rutte took office. The country is known for its strong economy that investors hope will handle the leadership transition smoothly.
“This really shows voters were voting strategically. They realized the extremes are not the solution at the moment. The Dutch are not anti-European. They are pro-European,” Famke Krumbmueller of the Eurasia political risk consultancy said in a report. [European ETFs Rebound]
Both the left-wing Socialist Party and the right-wing Freedom party were opposed to domestic austerity. There are currently new budgetary goals set in place by the fiscal compact and the Stability Pact. [Netherlands ETF Down, Dutch Government Optimistic]
There are parallels with French President Francois Hollande and German Chancellor Angela Merkel, and prospects of an uneasy coalition, reports Anna Holligan for BBC News. Analysts agree that whatever for the new government takes, the Freedom Party is likely to be kept out.
Rutte has not confirmed any coalition and has not specified if he would approach Labour, reports BBC News.
“As leader of the largest party I feel a particular sense of responsibility and therefore I don’t want to comment [on coalition deals],” Mr Rutte said. “I’m calling for radio silence.”