Dutch Election JittersThis weekend saw violent protests erupt in Rotterdam when the Dutch government prevented Turkish ministers from canvassing Turkish expats ahead of a critical constitutional referendum in Turkey. The action fueled more discussion over immigration and Islamophobia ahead of the Dutch election where ultra right candidate Geert Wilders has gained substantial ground in recent polls against more moderate parties.
Amidst the fray, Turkish president Erdogan labeled the Dutch as ‘Nazis’ while the current Dutch Prime Minister, Mark Rutte, said the Netherlands would not succumb to Ankara’s threats of sanctions.1
Erdogan is already on the backfoot with the Turkish lira (TRY) having lost half its value against the USD the last five years due to political turmoil and a coup d’etat attempt in 2016. While the euro may experience a bit of a sell off in the aftermath of the Dutch election if the PVV’s candidate Wilders gets in, the fact that he will struggle to form a coalition government means the volatility may be short lived or postponed til later in the year as Germany and France go to the polls as well.