Each year, the American Chamber of Commerce in the Netherlands (AmCham) publishes the Investors’ Agenda of Priority Points (Priority Points). AmCham’s Priority Points address the main challenges to the Dutch investment climate and form the basis for AmCham’s dialogue with the Dutch government, employer organizations, legislators and other important stakeholders. The 2019 Priority Points were presented during AmCham's Annual General Meeting on May 21.
Priority Points 2019: Focus on a Strong and Flexible Economy
Foreign companies are of crucial importance to the Dutch economy. They are responsible for nearly 38% of the country’s revenue and the employment of up to 967.000 people1. The U.S. still is the largest foreign investor in the Netherlands and both capital investments and jobs generated from U.S. FDI rose somewhat in recent years. While the Netherlands still is a top destination for U.S. investment, AmCham’s study on the Dutch investment climate shows that competition within the EU is fierce and the Netherlands has dropped in the overall ranking for both U.S. investments and jobs.
In 2018, the Third Rutte Cabinet ultimately gave a strong impulse to the Dutch investment climate with the planned reduction in corporate tax from 25% to 20.5%. A transitional arrangement was also created at the eleventh hour for the benefit of expats who are faced with a retrenchment of the so-called 30% ruling. These measures were actively advocated by AmCham and are greatly appreciated by the American business community in the Netherlands.
At the same time, there is a declining trend for global FDI according to research conducted by Bain & Company at the request of AmCham, while foreign investments are essential for the Dutch economy and employment. For the Netherlands to remain attractive as a destination in an era in which competition with other countries in attracting foreign investors is fiercer than ever, it is important that strategic policy is pursued. AmCham advocates, among other things, maintaining and, where necessary, reinvigorating the top-sector policy, further digitizing business and realizing the supporting infrastructure, and encouraging R&D activities. AmCham strongly advises the government to implement predictable policy, to live up to aroused expectations and to fulfill agreements made - and, if necessary, to defend them firmly. For American companies, reliability and stability are essential for the development and continuation of activities abroad.
AmCham's Priority Points 2019 are a plea for a strong and flexible economy, whereby the investment climate in the Netherlands is improved and Dutch society continues to benefit from the substantial employment opportunities that international business offers.
Key Points of Attention to Create a Strong and Flexible Economy and a Strong Investment Climate
- Invest in STEM2 education, keep investing in the digital infrastructure and increase investments in R&D.
- Build a resilient and adaptable labor market.
- A competitive profit tax rate is vital for the Dutch investment climate.
- Avoid national gold-plating, limit EU regulation costs, support a responsible energy transition.
- Acknowledge the societal value of R&D investments in healthcare and other industries.
- Protect investments in innovation and R&D.
Study Investment Climate in the Netherlands - Key Findings
- FDI is a driver of both economic and job growth in the Netherlands. Yet, global FDI has been declining at about 17% per year since 2015. Negative sentiment against the consequences of globalization and FDI is on the rise, and governments worldwide are taking more protectionist measures.
- The Dutch government is currently in the process of renewing its industrial strategy which it first released back in 2011. The new strategy aims for close collaboration between government, top-sectors and higher education to drive innovation and address some of the Grand Challenges facing Dutch society. AmCham recommends the Government to consider the following issues when developing the Netherlands' new industrial strategy:
- stimulate investment in innovation by reinvigorating close collaboration between government, companies and higher education;
- make it a priority of the industrial strategy to grow the number of STEM graduates and allocate the required resources;
- ensure that companies operating in the Netherlands remain competitive by safeguarding a level playing field.
Download the full text of the 2019 Priority Points and a Summary of AmCham's Study on the Investment Climate in the Netherlands here.
1 Source: CBS - Multinationals and non-multinationals in the Dutch economy (2018)
2 STEM: Science, Technology, Engineering and Mathematics – the so-called ‘beta’ studies