Dutch election: What’s next?

Praises from all across the Europe and especially from the European leaders are pouring in as the incumbent Prime Minister Mark Rutte defeated the dreaded Geert Wilders, the leader of the PVV party to become the largest party in yesterday’s election in Netherlands. As of latest, counting is complete in 383 municipalities among 388, and Mark Rutte’s party is set to gain 33 seats compared to 20 for Mr. Wilders. Below are the details of the result,

Despite the win, Mr. Rutte is in a tough position as his old coalition partner, the PvdA, which is left wing, collapsed in yesterday’s election. The party was able to hold just 9 seats, compared to 38 in the previous election. Mr. Wilders rallied on an anti-Islamic, anti-immigration, and on an anti-euro platform. While the number of seats improved for Mr. Wilders’ PVV, the major beneficiaries were small pro-euro parties like the D66, Greens, and CDA. These three carried 52 seats in yesterday’s election compared to just 29 seats four years back. These three parties are likely to play a crucial role in making of the next coalition government.

Mark Rutte would be formally called to form the government as the leader of the biggest party once the results are officially declared on 21st March. There would be at least four party coalition to reach the magic number of 76 in a 150 members strong parliament. While Mr. Rutte would have trouble forming coalition government compared to four years ago, smaller parties would be willing to cooperate for their own disgust for the PVV.

The euro benefited from the election and currently trading at the highest level in more than a month at 1.074 against the dollar. The spread between the Dutch and the German 10-year bund declined to the lowest level since January.