The Dutch Dilemma

The Netherlands will hold parliamentary elections Sept. 12. These elections create a quandary for the country, which traditionally has sought fiscal discipline and a small budget deficit. The effects of the European crisis have reached the Netherlands, and the next government likely will try to relax the country's strict fiscal responsibility goals. This would negatively affect the Netherlands' international credibility and undermine Germany's efforts to ensure greater fiscal discipline among members of the eurozone.