By Stefan Koopman, Senior Macro Strategist At Rabobank

The Global Daily is a publication of a Dutch bank, but it rarely discusses Dutch politics. Historically, the Netherlands is known for its financial stability and 'poldermodel' decision-making, so financial markets often have better things to focus on. However, the opportunistic manner in which Prime Minister Rutte pulled the plug on his fourth (and final) cabinet did grab international attention, as it caught his coalition partners completely off guard. They are expected to respond in kind: a vote of no confidence in the Prime Minister – initiated by opposition parties – is expected to be submitted today. The goal is to appoint a technocrat as caretaker until a snap election can be held in November. The collapse means that no 'controversial' decisions can be taken until there is a new government and that the status quo will be maintained.

This all adds to the degree of disillusionment among the Dutch electorate. The collective sentiment is that Rutte's manoeuvres regarding asylum policy are entirely driven by power politics. While it is true that society struggles with large migrant inflows, which the housing market and the education system can't handle, it is also true that the VVD government, under the influence of Dutch business, strives for more labour migrants in order to solve for structural worker shortages.