The Netherlands is becoming less attractive for businesses. More than 60% of entrepreneurs believe the business climate is worse than it was a few years ago, says Ingrid Thijsen, president of VNO-NCW, in BNR’s Big Five. SMEs in particular are under real pressure, with modest profits, a sharp increase in minimum wages, and problems financing their investments.
For the first time in decades, foreign investments were greater than investments in the Netherlands. This is unique, says Thiessen, especially given the fact that a reverse movement can be seen in surrounding countries. You also see that the return on investment in the Netherlands is 25 percent lower than in the countries around us and 40 percent lower than in the United States, so the Netherlands is quickly becoming less attractive.
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The atmosphere between business and politics has clearly changed in recent years, says Thygesen. She sees this as a direct result of the fragmentation of politics. “If you have twenty parties, there are also 20 parties that want to cater to their supporters, and that means huge bills for the Dutch treasury. This bill has to be paid from somewhere. The parties do not want to present this bill to their voters.”
CO2 pricing
Meanwhile, there is one party standing by: the business community. This is where the bill ultimately ends. Moreover, there are climate goals that Thiessen largely supports. “We also strongly support a CO2 pricing system in Europe.” Meanwhile, political parties focus on the huge profits made by multinational corporations. “All of this comes very easily in election rhetoric.”
“These are the real solutions instead of sticking labels and throwing the bill over the fence in front of the business community.”
It is true that some companies have made significant profits, Theissen acknowledges, but a climate should not be created in which (too much) profit is by definition “dirty.” “Profit is simply essential for a company, not least to be able to invest again. Nor should we conclude that significant profits have been made across the board. In small and medium-sized companies, profit growth has historically not been as low as in last year.
It sounds good, but it’s not based on facts
So the business community appears, wrongly, to be the target of the election campaign. Where significant profits have been made, they have been made mainly outside Europe, says Theissen. In Europe, especially in the Netherlands, margins have actually declined. “So it sounds good, and I understand that during election times, but we have to look at it with some understanding and realistic knowledge,” he added.
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It is important to solve economic obstacles structurally and not get involved in improvised solutions. You shouldn’t fight poverty with all kinds of benefits, says Thiessen, but by ensuring that work pays off and that working more leads to better results. “These are the real solutions instead of pasting plasters and throwing the bill over the fence in front of the business community.”
