Welcome to this week’s Great Game, where we cover the most important news in global politics and how they affect your portfolio. This week, we’ll cover the landslide win of Geert Wilders in the Dutch general elections as well as the most recent developments in the Middle East.

Is Wilders a non-event for markets?

Wilders’ Freedom Party (PVV) securing 37 seats to become the largest party in a highly fragmented parliament was unexpected, particularly given the historically centrist orientation of Dutch politics. The election outcome reflects a growing disenchantment with the incumbent parties and a surge in populist sentiment, mirroring broader European trends. However, the PVV’s victory doesn’t necessarily translate into immediate policy changes or market reactions.

The Dutch political landscape, characterized by its multiplicity of parties (26 in total, with 17 winning seats), necessitates coalition-building, which complicates the process of forming a government and implementing radical policy shifts. The significant differences in policy stances, especially on economic issues, between the PVV and other parties like the VVD and NSC, imply that any coalition would require substantial compromises.

Regarding financial markets, there’s been no