The Dutch economy remains strong, despite economic shocks and global uncertainty. To maintain the Netherlands’ prosperity, the government is focusing on economic growth. What does this mean in practical terms for the manufacturing sector? Koninklijke Metaalunie and FME share their views on the Budget Memorandum.
The Budget Memorandum sets out important measures to strengthen the Netherlands’ capacity for innovation, but misses opportunities to structurally improve the competitiveness of Dutch companies. It also lacks a clear commitment to technical education. This is according to a press release from FME. “New investments in innovation are desperately needed and therefore welcome,” says Theo Henrar, chairman of FME. “But many companies are currently struggling due to high costs, rising burdens and regulatory pressure. At the same time, the government is not doing enough to promote technical education. That is a problem. The government must not only invest in tomorrow’s economy, but also ensure that companies can operate competitively today.”
Innovation in the Budget Memorandum
FME is positive about the new investments in innovation. This is on condition that the National Investment Institute (NII) and the National Agency for Disruptive Innovation (NADI) complement each other and are given the scope to take risks and invest in upscaling and groundbreaking technology. Simply reallocating existing funds will not generate any additional investment capacity.
Competitiveness remains under pressure
According to the FME, investment in innovation is not being matched by sufficient progress in strengthening competitiveness. The regulatory burden remains high, additional Dutch requirements on top of European rules are not being sufficiently reduced, and electricity costs are becoming increasingly out of step with those of neighbouring countries. Against this backdrop, FME is disappointed that, under current plans, the government will not deploy the ‘electricity envelope’ for basic industries until 2028. Dutch companies continue to lag behind their foreign competitors, whilst new investments are increasingly being channelled elsewhere.
No clear commitment to technical education
The FME feels the government has failed to make a clear commitment to technical education, whilst the shortage of technical talent remains as acute as ever. No additional funding is being provided for technical training programmes, and the funding for vocational education (MBO) does not take sufficient account of the higher costs and labour market relevance of these programmes. Furthermore, the funds available to improve the link between education and the labour market are not sufficiently leading to structural collaboration with the business community. The FME therefore advocates targeted investment in proven public-private partnerships, such as hybrid tech centres.
Uncertainty in the Budget Memorandum
According to the FME, it remains unclear which plans will stand up politically and financially, and who will ultimately foot the bill. The trade association therefore believes that the government, the opposition, employers and trade unions must return to the negotiating table. Both employers and employees have a stake in a strong investment climate. This requires coherent, well-funded and workable policies that enable investment in innovation and production, thereby preserving and creating jobs.
The implications of the Budget Memorandum for the SME manufacturing sector
Koninklijke Metaalunie has also analysed the 2027 Budget Memorandum, the government’s budgetary plans and policy proposals, focusing in particular on their implications for the SME manufacturing sector. In doing so, the government’s intentions have been weighed against the interests of SME manufacturing companies and the positions and policy commitments of Metaalunie.
Business climate
Metaalunie sees positive developments, but continues to draw attention to rising costs, regulatory burdens and uncertain policy. The National Investment Facility and the modernisation of the BMKB offer opportunities, provided they are accessible to SMEs. International competitiveness, trade promotion and access to public procurement for SME manufacturing companies must also be strengthened.
Skilled workers
For SMEs in the manufacturing sector, securing sufficient technical talent remains essential. Metaalunie advocates for strong technical training programmes, practice-oriented learning, Metal Industry Vocational Colleges and a robust infrastructure for lifelong learning. At the same time, employers’ costs are rising. Metaalunie therefore calls for a fundamental overhaul of the social security system, with fewer risks and burdens for employers.
Innovation and industrial policy
The increased focus on innovation and labour productivity presents opportunities. WBSO rates will remain stable, the Innovation Box will become more accessible, and funding will be made available for the Growth Fund and NADI. Metaalunie believes it is important that these instruments are genuinely accessible to the wider SME sector and contribute to higher labour productivity and strong industrial supply chains.
Sustainable business
Network congestion, high energy costs and complex regulations continue to hamper investment. The Metaalunie is calling for more funding for practical solutions such as Flex-e, adequate support for circular economy investments and affordable energy. Sustainability regulations must be workable and support the transition to sustainability.
Photo: Image by MustangJoe via Pixabay // Sources: FME and Koninklijke Metaalunie
