The Wennink report underscores the urgency of improving the investment climate.

VNO-NCW and MKB-Nederland welcome Peter Wennink's advice on strengthening our future earning capacity. The business organizations recognize the concerns, bottlenecks, opportunities, solutions, and urgency identified today by the independent advisor. The advice reiterates the importance of a swiftly formed government that will revive investment in the Netherlands with targeted measures and stable policies, say Ingrid Thijssen, chair of VNO-NCW, and Jacco Vonhof, chair of MKB-Nederland.

The Confederation of Netherlands Industry and Employers (VNO-NCW) and the Dutch Enterprise Agency (MKB-Nederland) have been warning for some time about the rapidly deteriorating investment climate in the Netherlands and its long-term consequences for our welfare state. Peter Wennink also states that "dark clouds are gathering" over the Netherlands if we don't act quickly. Therefore, the former CEO is today presenting a multi-year plan to strengthen earning capacity. This plan is the Dutch implementation of the important Draghi report aimed at strengthening European competitiveness.

Economic growth

The Netherlands is in the midst of major societal transitions in healthcare, housing, defense, and climate. To navigate these transitions and maintain our purchasing power, social security, and public services, economic growth of 1.5 to 21 TPI per year is necessary. If we continue on our current growth path, we will lose at least €1,700 in purchasing power. All sectors have a supporting role. To keep the economy growing, we must invest in highly productive sectors, which ultimately benefits all citizens and businesses.

Preconditions

Growth requires investment. According to Wennink, we need €151 to €187 billion in investments, primarily private investments. But investments are currently being held back because the preconditions are not in place. Slow permitting, the nitrogen lock, high energy costs, grid congestion, an uncompetitive tax system, and the abundance of regulations are hindering investment, and thus growth and sustainability. For example, nitrogen emissions are currently holding up projects that would contribute to the climate transition. "The will to build is there, but the climate to build is lacking," Wennink observes. Concerns also exist about the poor performance in education and lagging investments in R&D.

Chances

At the same time, achieving the necessary growth is possible; all the opportunities are there. We have talent, quality, knowledge, and innovation power. There are also at least €126 billion in investment plans ready in high-productivity sectors and technology: digitalization and AI, life sciences and biotechnology, safety and resilience, and energy and climate technology. Billions that could be unleashed under better circumstances. But beyond those billions, it requires hard work and political and social courage, the advisor states. Choices regarding the labor market, in particular, will have to be made with social partners, as usual.

source: The Wennink report underscores the urgency of improving the investment climate.