Netherlands lags behind European rivals

The number of foreign companies investing in the Netherlands is at the same level as before the economic crisis according to an annual survey by Ernst & Young. In the European rankings, the Netherlands slipped from seventh to eighth place.

While the number of investment projects in the Netherlands grew by six percent in 2010, other European countries, such as Germany, Poland and Belgium, managed to attract more foreign investors. A positive development is that the number of investments in headquarters in the Netherlands has increased again for the first time in three years.

According to foreign investors, the Netherlands has some strengths, such as the socially stable environment, infrastructure and quality of life. Less attractive are labour costs, the inflexible labour market and real estate costs. As in 2009, the country where foreign companies invested most last year was Britain. The biggest increases were in Serbia (162 percent) and Lithuania (210 percent).

The outlook for the Netherlands, according to the study, is moderately positive. 23 percent of decision makers interviewed by Ernst & Young said they have concrete plans to create or expand an establishment in the Netherlands. But 47 percent said they definitely have no such plans. Surrounding countries such as Belgium and Germany scored better in this respect.

(as/dd)

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