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The tension is rising between Turkey and the Netherlands

The Turkish cabinet is expected to impose sanctions on the Netherlands.

President Tayyip Erdogan, who is seeking support from Turks in a referendum on boosting his powers, has accused the Dutch government of acting like "Nazi remnants" and said it should face sanctions for barring his ministers from addressing expatriate Turks.

The row marks another low point in relations between Turkey and Europe, further dimming Ankara's prospects of joining the bloc. It also comes as Turkey is caught up by security concerns over militant attacks and the war in neighboring Syria.

Apart from any economic measures, a source in Ankara said sanctions could affect cultural activities, and military and technological cooperation.

Turkey summoned the Dutch charge d'affaires on Monday to complain about the ban - imposed due to fears of unrest and distaste at what the Netherlands sees as an increasingly authoritarian tone from Erdogan - and the actions of Rotterdam police against Turkish protesters over the weekend, foreign ministry sources said.

On Sunday, Dutch police used dogs and water cannon to disperse hundreds of protesters waving Turkish flags outside the consulate in Rotterdam. Some protesters threw bottles and stones and several demonstrators were beaten by police with batons, a Reuters witness said. Mounted police officers charged the crowd.

"The Turkish community and our citizens were subject to bad treatment, with inhumane and humiliating methods used in disproportionate intervention against people exercising their right to peaceful assembly," a statement attributed to ministry sources said.

The Dutch government barred Turkish Foreign Minister Mevlut Cavusoglu from flying to Rotterdam on Saturday and later stopped Family Minister Fatma Betul Sayan Kaya from entering the Turkish consulate there, before escorting her back to Germany.

Protests then erupted in Turkey and the Netherlands. Several European countries, including Holland, have stopped Turkish politicians holding rallies, due to fears that tensions in Turkey might spill over into their expatriate communities.

Some 400,000 Turkish citizens live in the Netherlands and an estimated 1.5 million Turks live in Germany.

The Dutch government said the visits were undesirable and it would not cooperate in their campaigning. According to polls, it is set to lose about half its seats in elections this week as the anti-Islam party of Geert Wilders makes strong gains.

Monday was the third time the Dutch envoy had been called in since Saturday over the row. The Dutch ambassador is on leave and the Turkish foreign ministry says it does not want him back "for some time".

Dutch direct investment in Turkey amounts to $22 billion, making the Netherlands the biggest source of foreign investment with a share of 16 percent.

Ozgur Altug, chief economist at BGC Partners in Istanbul, said at this stage he did not foresee the row having serious short-term economic consequences.

"However, if the tension escalates and if countries start imposing sanctions against each other, it might have serious implications for the Turkish economy," he said.