Achi news desk-
‘Operation Beethoven’: Dutch 2.5bn-euro charm offensive to keep ASML
The Hague, (APP – UrduPoint / Pakistan Point News – 28th March, 2024) The Dutch government on Thursday unveiled a 2.5 billion euro plan to keep global companies such as chip giant ASML amid fears of a far-right clash over immigration.
The plan, dubbed “Operation Beethoven”, aims primarily to prevent ASML, which builds machines to make semiconductor chips, from moving abroad to attract talented workers.
The funding, equivalent to $2.7 billion, comes from the government but also the region around Eindhoven, in the east of the Netherlands, where ASML is located.
“This is one of the most important companies in the Netherlands, a global player,” said Economy Minister Micky Adriaansens, according to local news agency ANP.
“ASML is our Messi and such a star player brings a whole team with them,” he added.
ASML has raised concerns that reducing immigration including skilled workers to the Netherlands – as promised by far-right leader Geert Wilders, who won November’s elections – would force it to look elsewhere.
“If we can’t get the people here, we’ll get the people elsewhere. It’s very simple,” chief executive Peter Wennink said in January when ASML published its annual report.
“We are a company, we are a global company. We will go where we need to go to make sure that the company can grow and serve our customers,” he added.
“If the Netherlands closes down, because we can’t have immigrants or foreign students, fine. You have to accept the consequences.”
The money announced on Thursday will go towards investments in talent development, making it more attractive to live and work in the area, but also address concerns about the shortage of electricity grid.
“With these measures, the government assumes that ASML will make further investments in the Netherlands and keep the location of its statutory, tax and actual registered office in the Netherlands,” the government said.
“If investment plans change, these forecasts and the required commitment will be adjusted,” the Dutch government warned.
– ‘A significant source of talent’ –
Wilders has since indicated that he will not seek to become prime minister but his PVV Freedom Party and others in coalition talks have all pledged to reduce immigration.
Another policy of concern to multinational companies in the Netherlands is the phasing out of a lucrative tax break for talented expats.
Many politicians also want to reduce the number of foreigners in Dutch universities, which attract many talented students with high-quality English courses.
“That is a very significant source of talent that we need to drive innovation,” said Wennink.
ASML employs 42,000 worldwide, more than half of whom are based in the company’s huge complex in Veldhoven, in the east of the country, with a significant proportion coming from abroad.
The “Brainport” region, which hosts ASML but also technology companies such as Philips, is considered the “Silicon Valley” of the Netherlands.
The Netherlands has traditionally been considered a good place to do business, with a liberal economy and an educated, English-speaking workforce.
But a report in February by business association VNO-NCW suggested a deteriorating climate.
Almost half (44 percent) of the surveyed entrepreneur group do not see the Netherlands as an attractive country to do business in and almost 20 percent are considering leaving, the VNO-NCW said.
A year ago these percentages were 28 per cent and 13 per cent respectively.
The biggest concern voiced by entrepreneurs is the lack of political stability after the stunning victory of Wilders and his PVV party in the election.
The PVV is currently discussing a program with three other parties but the process will take several more months and is not guaranteed to lead to a stable government.
The Dutch business community has been shaken by recent exits from corporate behemoths such as consumer goods company Unilever and energy giant Shell.
There are hopes that Unilever will list its ice cream division on the Amsterdam stock market, after spinning it off from the core business.
