England has for a while now been pushing to leave the European Union with the famous Brexit. For the Netherlands this will have an effect on its economy as the finance ministry of the Netherlands stated it where he requested the country to be prepared for the consequences. For long the European Union has been a uniting among the countries in Europe whereby it has been enabling a free-flowing trade among its members. Britain threatening to leave the union will mean that a gap will be left that will never be filled and the British allies will suffer where the Netherlands is one of them (Schaverien, 2019).
Many Netherlands companies benefit very much from the trading activities from Britain. In terms of figure, the Dutch economy could lose out on 10 billion euros, or $11.3 billion if Britains request to leave the European Union is approved. This will be a huge hit, and it is one of the primary reasons as to why the Dutch government is advocating for a no deal Brexit affair. It also wants the clause that gives countries from the European Union a chance to decide whether to leave the union abolished. The clause according to the Netherlands government officials should be replaced by a clause whereby if you enter the union there is no going back
Lastly, the Netherlands is one of the many European countries that face the menace that may come as a result of Brexit. International ties and business are the key activities that help in the growth of the economy of any particular country. Dutch have powerful ties with the British companies economically means that a drop in the country’s GDP would be experienced in case the Brexit happens (Schaverien, 2019). However, there is some green light at the end of the tunnel whereby the deal does not seem likely to go through because its already two years now and no decision has been made about the issue.
Schaverien, A. (2019). Beware the Brexit Monster: Dutch Businesses Get a Furry Blue Warning. Retrieved from https://www.nytimes.com/2019/02/14/world/europe/dutch- Brexit-blue monster.html?rref=collection%2Ftimestopic%2FNetherlands&action=click&contentColl ection=world®ion=stream&module=stream_unit&version=latest&contentPlacement= 6&pgtype=collection
Dutch view on Air France
A fresh twist and row have emerged between the Netherlands and France over the stake in the air France company. Initially air France is supposed to be a France company although it has had external partnerships with other countries lie with the Netherlands. Most recently the finance minister of Netherlands took the move to up their stake of ownership in the company which has its roots in France (Davies, 2019). This decision was not taken lightly by the France government who termed the move as a selfish one, and that could lead to the emergence of economic sabotage between the countries.
France and its government own 14% of the company while the Netherlands initially had a share of 12.7%. The Netherlands then decided to increase its stake to 14% to move level with the mother country o the company which is France. One of the reasons that are attributed to this move is because the Dutch government wants to have a say in the high table of the company. Additionally, Schipol airport, in Amsterdam is the seconded busiest airport in Europe only bettered by Charles de Gaulle in Paris.
Having an international airport that operates in the Netherlands created the urge to increase the stake from the finance minister. France retaliated by asking the Dutch government to clarify their intentions and what led to the move. This is because they felt that it was more of a company raider move rather than that of trying to reap profits. However, when the French government was asked to comment on whether they will up their stake to around 15% or 16% to counter the Dutch move, they remained silent and did not comment on the issue (Davies, 2019). However, they acknowledged the importance of holding business ties with the Netherlands but said they should not have a bigger say in such a large company like Air France.
Davies, R. (2019). France fumes as the Dutch government takes a stake in Air France-KLM. Retrieved fromhttps://www.theguardian.com/business/2019/feb/27/france-fumes-as-dutch- government-takes-stake-in-air-France-klm
Netherlands view on Nikes taxation
The European Union has been given the mandate by its member countries to make sure that all the economic activities carried out in the region are according to the economic laws that they have set. Most recently there was a probe where the European authorities started an investigation in the Netherlands with the suspicion that the Nike Company was receiving some tax breaks from the government of Netherlands which according to the European Union laws is an economic fraud. However, the Dutch government refuted the claims and said that it provides a level playing ground for all the companies in the country. Its view on the issue was that such issues should not be tolerated as according to the European Union laws.
Many multinational companies, especially from the United States, have been receiving a cut in tax for profits from countries to be lured into investing in the said countries. This is not acceptable, and the European authorities have begun investigations to prove whether the claims are true or not. If found guilty both Netherlands and Nike are likely to receive some fines and penalties because all companies are supposed to be given the same competitive ground to compete with each other without giving an upper hand to others (Ewing, 2019). Sometimes back apple company was found guilty and had to pay 14.3 billion euros, or $16.5 billion, to the Irish government for a similar case.
Netherlands view on the situation was that nothing of the sort had happened and Nike was operating on the Dutch soils just like any other company. Nike also gave a similar statement where they said that they complied with all the tax laws of the country just like any other company and was not receiving any special treatment. This trick of exempting some companies from paying certain taxes are harmful to the economy, and the Dutch government stated it categorically that it has never involved itself in such activities.
Ewing, J. (2019). Netherlands May Have Given Nike Illegal Tax Breaks. Retrieved from https://www.nytimes.com/2019/01/10/business/nike-netherlands-eu-tax-breaks.html