Over in the Nertherlands, tensions which began simmering away last week have now hit more of a rolling boil with Geert Wilders (pictured) sticking his nose up at new austerity targets set by Brussels.

The anti-immigration politician stormed out of important budget talks after finding himself faced with a proposed €1.6bn worth of cuts in order to hit targets. Upon making his early exit, he demanded for elections to be held "as soon as possible", saying that he couldn't allow the Dutch to “pay out of their pockets for the senseless demands of Brussels”.

Last week the nation was threatened with the prospect of a Moody’s rating downgrade (from its ‘Triple A’ pedestal) if it fails to hit targets or allows internal political conflict to jeopardise its economic management. The stress appears to have got to the those at the top and rumours are now abound that Prime Minister Mark Rutte will hold an emergency cabinet meeting and step down from his post.

Forex news analysts are now becoming increasingly concerned about the risk the Netherland poses to its struggling Eurozone neighbours. Kathleen Brooks, Research Director, FOREX.com “The Netherlands has overtaken France as the largest political risk this week after one of the coalition partners in the government withdrew due to negotiations over the 2013 Budget.

“This political impasse may lead to fresh elections and could weigh on the nation’s triple A credit rating. Holland was once considered a “safe” triple A nation, however, that may not be the case.”

Brooks went on to point out that, although Holland may be better off than some of its deeply troubled neighbours, the impact of a Dutch downgrade could have a significant impact on the eider community. “Although Holland is in much better shape than other parts of Europe (the impasse is over how to cut the deficit to 3percent of GDP next year, before many other countries’ plan to do so) Europe’s rescue fund needs all the triple A guarantees it can get. Thus, the markets now have to factor in Dutch political risks when trying to price assets.”

Other top forex news analysts and brokers have commented on the threat that Wilder’s increasingly radical political agenda and the threat it poses to the safe recovery of the Dutch economy. Marc Chandler of Brown Brothers told this site: “To find more savings when the Dutch economy is contracting is, according to Geert Wilders, the head of the Freedom Party, to surrender to the "dictators in Brussels"”.

Chandlers goes on to draw a parallel between Wilders’ attitude to Brussels and his extreme anti-immigration views. “He would not sanction cuts in domestic spending and walked out of talks.  Ironically, Wilders is to be in the US in the coming days, promoting his new book "Marked for Death:  Islam's War against the West and Me".

“Wilder's political agenda does not appear to be representative of a majority of people in the Netherlands or more generally in Europe.  Yet the nationalism he speak to and the antipathy toward the EU (Brussels) seems very real, and make no mistake, the EU is just a thinly veneer covering Germany, which is understood to be setting the agenda.”   

Sarah Cox, Staff  Writer