The Price of Political Crisis: Economic Adjustment and Political Transformation in Belgium and the Netherlands

Political crisis is no longer 'news' in Belgium or the Netherlands. Less well understood is the toll that this controversy is taking on patterns of economic policymaking. Belgium and the Netherlands used to rely on consensus to stabilize welfare state institutions and to underwrite national competitiveness. This is no longer possible in times of political crisis. As a result, both countries are less flexible and more vulnerable than ever since the end of the second world war. Worse, they may never recover the ability to foster economic consensus.