How the Netherlands is emerging from the coronavirus crisis at an accelerated pace and with the least losses
Based on data from the Central Bureau of Statistics, the Netherlands is among the countries least affected by the crisis, along with Belgium, France and Germany. But unlike the above countries, where a moratorium on bankruptcy was introduced (a temporary restriction on the initiation of bankruptcy proceedings against a vulnerable category of debtors), the Netherlands managed to avoid a large number of bankruptcies through prompt state support for entrepreneurship and changes in the labor market.
Despite the positive outlook for economic recovery after the pandemic, some entrepreneurs have had to make heavy use of their reserves. This could lead to a reduction in the company's staff. In this regard, the government has developed a package of support for jobs. NOW (Overbrugging about this Employment opportunities) Is a temporary and emergency measure to reimburse personnel costs. Namely, the preservation of employees' jobs, the main recipient of which is - horeca (Hotel, Restaurant, Cafe). As the drop in employment was expected, especially due to the closure of cafes, restaurants, swimming pools, hotels and other establishments.
We also note that the labor market itself has been transformed. Having lost their jobs in some sectors, the unemployed quickly got a job - in others. For example, in the medical sector - GGD, vaccination centers, and other temporary jobs related to the corona. This flexibility allowed the labor market not to show negative results as a result of the crisis.
How the Netherlands manages to remain an attractive space for entrepreneurs during the coronavirus pandemic
Although experts are cautious in their short-term forecasts, in the long-term, economic growth shows positive dynamics and possible changes will insignificantly affect it. The government is also taking additional measures to help companies deal with the growing debt burden. In total, the Dutch government has allocated 80 billion euros to support companies and workforce during the pandemic. A return to a healthy economy with normal economic dynamics is essential for the economic efficiency of the Netherlands.
According to international reports, the Netherlands is the country with the most stable macroeconomic situation. This means that the indicators of inflation, unemployment, national debt, economic growth are stable and easily predictable, and in times of macroeconomic shocks (in this case, the coronavirus pandemic), the state helps business and entrepreneurs.
If you are looking for a stable European country with a thriving economy to expand your business, it might be worth considering setting up a branch of your company in the Netherlands. Our experts will help you organize and carry out all aspects of relocating your business to the Netherlands.
Publication Date: 30.06.2021
