Nearly half of Dutch companies expect to delay investments amid policy uncertainty

Almost half of Dutch entrepreneurs expect to postpone investments over the coming year, mainly because of uncertainty over government policy, according to employer organizations VNO-NCW and MKB Nederland. Companies are choosing not to invest in innovation and sustainability, as well as things that can hurt the economy, the groups said.

"Entrepreneurs are being held back in their investment decisions not only by economic headwinds but above all by uncertainty about the government’s direction. They do not know clearly enough which rules, costs, and conditions will apply in the years ahead,” the organizations said. They cited a survey of nearly 3,500 enterpreneurs.

The groups called the situation a problem for the entire country. The investments are needed to strengthen the Netherlands’ productivity and earning capacity, they say.

VNO-NCW and MKB-Nederland urged politicians to set a shared investment and growth plan. The main obstacles, including grid congestion, must be tackled quickly so that the companies can start investing again, the groups argue ahead of Prinsjesdag, the annual budget presentation day.

VNO-NCW chairman Coen van Oostrom said on Sunday on TV program WNL Op Zondag that unions should return to the table with the Cabinet to discuss social security. “It is time to stop stroking and get back to work,” Van Oostrom said. Unions have staged various protest actions against the social security cuts in recent weeks across multiple sectors.

Union CNV is seeking a 3 to 5.5 percent pay increase in the coming collective-bargaining season. The employer organization said they do not intend to go along.

Van Oostrom also called the wage demand too high. There is an idea that a pay rise must at least offset inflation, he said. But much of that inflation stems from higher fuel costs, which companies themselves also feel. He urged caution on wage increases.