The Netherlands: Does the Netherlands risk losing foreign investment to Britain' if letter box companies are closed down?

The Netherlands may lose its advantage when it comes to attracting foreign investment because other countries such as Britain are making their tax regimes more attractive, says the Financieele Dagblad in one of their reports recently.

The paper bases its claim on interviews with lobby groups and tax advisers.

For example, Amcham, the American Chamber of Commerce in the Netherlands, has warned deputy finance minister Frans Weekers that American firms are regularly opting for London rather than the Netherlands, the paper says.

Both new firms and existing companies such as holdings are turning to Britain.

Amcham points out that while three-quarters of the US capital which comes into the Netherlands moves out again via letterbox companies, the money which remains is more than French, German and Belgian investments combined.

Note EU-Digest: In their report Het Financiele Dagblad seems to be lobbying  for Tax Evading companies and their advisers. They fail to report that Dutch laws are completely different from British laws when it concerns tax evasion and Letter-Box companies. Letter-Box companies which are closed down can only go to Britain or any other country in the EU unless they comply with local  tax laws. Let's hope the EU Commission does not fall asleep on this issue and ends the opportunities created for multi-nationals to evade taxes through legal loopholes in the EU.

Read more: DutchNews.nl - 'The Netherlands risks losing foreign investment to Britain'

The Netherlands is now less creditworthy than Microsoft - by Jason Karaian

Standard and Poor’s stripped the Netherlands of its AAA credit rating today. This ignominy means that the Dutch, now rated merely AA+, are considered less creditworthy than the Germans, on a par instead with the Americans.Although considered part of the euro zone’s sturdy northern “core,” the Dutch economy has performed more like the wobbly southern “periphery” recently, with GDP set to shrink by 1.2% this year, according to S&P. The size of the Dutch economy won’t surpass its 2008 peak until 2017, reckons the ratings agency. Future growth will be weighed down by aggressive government austerity and falling house prices.

S&P also cut France’s rating earlier this month, to a notch below the Netherlands. Economist Holger Sandte of Nordea bank expects a gradual convergence of ratings among euro members, driven by French and Dutch-style downgrades rather than upgrades of lower-rated countries; Germany, Luxembourg and Finland are now the only members of the 17-nation euro zone with the top rating from all three leading credit agencies. S&P upgraded its outlook for Spain today, to “stable” from “negative,” but left its BBB- rating in place.

Not that any of this really matters. For widely held, extensively scrutinized bonds like those issued by the Dutch government, the opinion of one ratings agency doesn’t move markets much; Fitch and Moody’s, the other two big agencies, still give the Netherlands the top grade. Dutch bond spreads barely budged on the downgrade news, and continue to fetch lower yields than fellow AA+ rated America (as does AA rated France, for that matter). 

Read more: The Netherlands is now less creditworthy than Microsoft - Quartz

Attention Geert Wilders and Marie Le Pen: Eurozone posts euro 13.1-billion September trade surplus

The eurozone posted another big 12-month increase in its trade surplus on Monday, the latest monthly data from the EU's Eurostat agency showed.

The first estimate for September gave a 13.1-billion-euro surplus (US$17.7 billion) for the trade in goods with the rest of the world, compared with 8.6 billion euros in September 2012.

A trade surplus is one of the factors of growth in an economy, whereas a deficit tends to sap growth, and so achieving a trade surplus is of critical importance to economies in crisis.

Read more: Eurozone posts 13.1-billion September trade surplus: EU

Recycling and Waste Management: EU recycling industry could create an additional 160,000 jobs by 2020

Recycling could create at least an additional 160.000 jobs in a circular economy say executives at WRAP a British advisory company which works with a wide range of partners, from major UK businesses, trade bodies and local authorities through to individuals looking for practical advice on recyclin.  They are funded by all four governments across the UK and the EU and run programs in England, Scotland, Wales and Northern Ireland.

A circular economy is an alternative to a traditional linear economy (make, use, dispose) in which we keep resources in use for as long as possible, extract the maximum value from them whilst in use, then recover and regenerate products and materials at the end of each service life.

As a practical example of a circular economy - Norway, along with many other northern European countries, has built a network of cogeneration plants that produce heat and electricity from recycled waste.  Referred to as waste-to-energy facilities, the process is relatively simple.  Garbage is burned in a portion of the facility, creating steam, ash and flue gases.  The facility collects the steam and uses it to turn turbines, which generates the electricity used throughout much of the country.  The ash is trucked away to a landfill, while the remaining gases are either filtered and dispersed into the atmosphere, or collected and used for additional products like biofuel.

With a growing recycling infrastructure diverting more European waste from landfills, as well as systems R&D investments from integrated waste handling firms the EU could eventually be turning their waste into gold and jobs.

EU-Digest

European Economy: Red Cross study slams Europe's response to the economic crisis over the past five years

Homeless Europeans

A Red Cross study slams Europe's response to the economic crisis over the past five years, saying the continent is in for a long period of unemployment, a widening poverty gap and a growing risk of social unrest. 

Annitta Underlin is the Director for Europe with IFRC (the International Federation of Red Cross and Red Crescent societies). Her section combines 52 national Red Cross and Red Crescent societies. In a report called 'Think differently,' published on Thursday (10.10.2013), they warn that Europe's response to the economic crisis will push the continent into social and economic decline.

Read more of the interview: 'The crisis has taken root at every level' | Europe | DW.DE | 10.10.2013

The Netherlands ranked below average for foreign investors in Grant Thornton annual Global Dynamism Index (GDI)

The  Grant Thornton annual Global Dynamism Index (GDI) rates 60 of the world's biggest economies according to 22 indicators of "dynamism." These include factors such as corporate tax burdens and GDP growth.

According to the survey, Australia was the world's most attractive country for foreign in investment in 2013 among 60 nations ranked .The Netherlands was ranked 38th.
  
The GDI, however rated the Netherlands high in terms of political stability, Business Operating Environment and foreign trade relations. It also gave the Netherlands  high marks for its usage of Internet services.

Almere-Digest

Euro zone morale reaches two-year high in September but mood in the Netherlands worsened by 0.9 points - by Martin Santa

Optimism in the euro zone's economy brightened for the fifth month running and hit a 2-year high in September, driven by improving confidence across all sectors and confirming that a recovery is underway.

The European Commission said on Friday the 17-nation bloc's morale rose faster than expected to 96.9 from 95.3 in August, the best reading since August 2011.

In the wider European Union, confidence was up by 2.4 points to 100.6 points, taking the indicator above its long-term average for the first time since July 2011.

In the euro zone, the positive trend was particularly strong in three out of the bloc's five largest economies, with Spain and Italy rising by 2.5 points and France up by 1.6 points.

Sentiment in Germany, Europe's biggest economy, was broadly unchanged, while the mood in the Netherlands worsened by 0.9 points in September.

Across the bloc, employment plans were revised upwards in industry, services, retail trade and construction, the European Commission said.

Read more; Euro zone morale reaches two-year high in September | Fox Business

The income gap in the Netherlands is getting wider, researchers say

The gap between rich and poor in the Netherlands has increased over the past 35 years, according to researchers at Amsterdam University.

The financial position of the 10% of the population with the lowest incomes worsened by about 30% between 1977 and 2011, while the rest had more to spend, the research, quoted by the Volkskrant, shows.

The main reason for the deterioration in the position of low income households is cuts in social security benefits.

In 1977, the richest 10% of the population earned 5.1 times as much as the poorest 10%. But by 2011 this had stretched to 8.2%, the research showed. Growth was fastest in the second half of the 1980s when the minimum wage and benefits were frozen.

The current coalition government has made reducing the income gap a central part of its policies and is increasing the tax burden on the better off.

Read more: DutchNews.nl - The income gap in the Netherlands is getting wider, researchers say

Lotteries: are they a hidden "scam" to make the lower income earners pay more tax?

The world lottery news reports that in the the first half of the year global lottery sales were up nearly 5% world-wide after a sluggish start with Latin American, Asia Pacific, and North American markets performing strongly in the second quarter.

Latin America showed a increase in sales of 24.6% for the first six months of 2013. Argentina’s Lotería Nacional Sociedad reported an increase in sales of 31% for the period January–June 2013 and Brazil’s Caixa Econômica Federal also enjoyed healthy sales growth, reporting an increase in sales of 12.5% for the first half of 2013.

The Asia Pacific region witnessed an increase in sales of 11.1% for H1 2013 over H1 2012, including the China Sports lottery increased by CNY 10.54 billion and the Chinese Welfare lottery increased by CNY 10.11 billion for the first six months of 2013.

European lotteries witnessed a relative decrease in sales of 1.7% but was still up a small percentage against the same time frame in 2012.

In the North American market, an increase of 9.4% on sales for the second quarter of 2013 was reported. 

The North American lottery system is a $70 billion-a-year business, an industry bigger than movie tickets, music, and porn combined. These tickets have a grand history: Lotteries were used to fund the American colonies and helped bankroll the young nation. In the 18th and 19th centuries, lotteries funded the expansion of Harvard and Yale and allowed the construction of railroads across the continent.

Since 1964, when New Hampshire introduced the first modern state lottery, governments have come to rely on gaming revenue. (Forty-three states and every Canadian province currently run lotteries.) In some states, the lottery accounts for more than 5 percent of education funding.

While approximately half of Americans buy at least one lottery ticket at some point, the vast majority of tickets are purchased by about 20 percent of the population. These high-frequency players tend to be poor and uneducated, which is why critics refer to lotteries as a regressive tax. (In a 2006 survey, 30 percent of people without a high school degree said that playing the lottery was a wealth-building strategy.) On average, households that make less than $12,400 a year spend 5 percent of their income on lotteries—a source of hope for just a few bucks a throw.

A 2008 Carnegie Mellon study found that "lotteries set off a vicious cycle that not only exploits low-income individuals' desires to escape poverty but also directly prevents them from improving upon their financial situations." As the study's lead author said: "The hope of getting out of poverty encourages people to continue to buy tickets, even though their chances of stumbling upon a life-changing windfall are nearly impossibly slim and buying lottery tickets in fact exacerbates the very poverty that purchasers are hoping to escape." (For what it's worth, the odds of winning the latest Powerball drawing were about one in 175 million.) A Duke University study found that the poorest third of households purchase more than half of the lottery tickets sold during a given week.

So let's acknowledge the lottery for what it is: a tax on those who can least afford it that is levied by preying on the very fact that they can't afford to buy the things they need. Sure, buying lottery tickets can be fun in the short term, but in the long run, lotteries are a truly cynical way for states to raise money.

As to the operational mechanics of lottery systems - investigators probably would have a field day looking into these structures. It is obvious that the super-computers which run these lotteries can easily be manipulated.

EU-Digest 

The Netherlands: Health Insurers saw their profits double last year but premiums remain high

Dutch insurance companies nearly all doubled their profits last year, but industry business leaders said they are doubtful that they can reduce their customers premiums in 2014.

Last year Dutch health insurers saw their profits more than double to 1,4 billion euros. In response to the figures, the Minister for Health Edith Schipper said was that there was a "social imperative" to conclude that higher income leads to lower premiums.

Roger van Boxtel, CEO of insurance company Menzis, said that he wants nothing more than to lower premiums, but that any further decrease in premium costs depends very much on the measures that the government presents in the Budget.

As to the large profit figures made by the health insurers, van Boxel said, "Many people have been saying over the last few months ‘that we made very large profits’. But if you want to be a healthy company, you need to have buffers."

The Dutch health insurance system (since January 1st, 2006) is a combination of private health plans with social conditions built on the principles of solidarity, efficiency and value for the patient.

Health insurance in the Netherlands is mandatory if you are on a long-term stay and is designed to cover the cost of medical care. As a rule, all expats must have a Dutch health insurance even if they are insured for healthcare in their homeland also.

Dutch insurance companies are obliged by law to offer you the basic package. They can not deny coverage because of gender, age or health profile.

Almere-Digest

Dutch PM Rutte Says Netherlands in Difficult Times, Unemployment to Rise - by Fred Pals

The Netherlands is going through extraordinarily difficult economic times and unemployment will continue to rise for some time, Prime Minister Mark Rutte said.

Dutch PM Mark Rutte

“Radical changes will come to the Netherlands,” Rutte said in a lecture in Amsterdam yesterday. “We stand for fundamental choices, and we need to make the right ones.”

The government will unveil a plan to save 6 billion euros ($7.9 billion) in parliament on Sept. 17. That’s on top of a four-year, 16 billion-euro austerity package approved in November when Rutte took office.

The Dutch economy, in its third recession since the financial crisis started in 2008, shrank 0.2 percent in the second quarter.

Rutte’s government, which comprises his Liberal Party and the Labor Party, stands at an all-time low in the polls.

The coalition would only retain 32 of the 150 seats in parliament if elections were held now, a drop of 47 seats, according to a survey published by polling agency Peil.nl on Aug. 25. The Labor Party would have 12 seats, while Rutte’s Liberal Party would get 20 seats, according to the poll.

Read more: Rutte Says Netherlands in Difficult Times, Unemployment to Rise - Bloomberg

The Netherlands: Dutch Minister Of Finance Dijselbloem Optimistic About Dutch Economic Recovery

Next year there will absolutely be economic growth said Dutch Treasury Secretary Jeroen Dijsselbloem (PvdA) Monday during a party meeting in Amsterdam. '

"But the annual explosive growth rate we had in the 1990s will  not return anymore, and  I don't want this either, because it was not sustainable growth" said Dijselbloem '

The Dutch Office For Economic Policy Analysis (CPB)  reported last week that the Dutch economy will grow by 0.75 percent in 2014, but in that estimate the new austerity package of EUR 6 billion was not included.

It is generally assumed that the new austerity measures and tax increases will slow down the economic recovery said  Dijselbloem , but he reckoned that  the Netherlands will still show some growth next year.

Dijselbloem  also said one of the major difficulties at the moment for the Dutch economy was the depressed housing market.  He said it was not his intention to give any advice or make an appeal for people to spend money, but said he considered this to be an excellent time to buy a home with interest rates at rock bottom before interest rates go up again.

Almere-Digest

The Netherlands - Almere - "we are suffering a dangerous case of Dutch self confidenc disease " by RM

Dutch disease can be described as the economic condition that arises when a vast amount of wealth, resulting from external factors, flows into a country. Usually these windfall revenues create high inflation and sustain a currency priced beyond its competitive value. It drives up production costs and leaves the output of the economy uncompetitive. Capital invested in the economy becomes unproductive and the productivity of labour declines.

In the 1960's, North Sea oil and gas was the easy and irresistible challenge for the Netherlands to quickly create great financial prosperity. But unfortunately without the steadying hand of government, using policy measures to maintain the competitive viability of the overall economy, the boon soon became a monumental bust.

Basically everyone in the Netherlands is somehow still living in this 60's fantasy-world  and living beyond their means including to having a cocky attitude about it.  .

The Netherland's experience demonstrates that the Dutch disease is a condition that has to be met with policies to maintain the competitiveness of the whole economy if  you don't want the good fortune of a sudden increase in externally generated revenues to become a costly bubble to an economy. Today, we find municipal governments in the Netherlands not really seriously looking at what makes their city attractive to foreign investors in order to create new investments and jobs, but instead most seem to be haggling among  themselves about political, internal and trivial administrative matters.

Instead organizations like the World Trade Center and the Chambers of Commerce and Tourist organizations should become an integral part of strategies which increase interest, investment and employment for the local community.  Obviously it can not be a one man show, but must be a joint effort of people, organizations and corporations, which have a common and personal interest to increase the exposure of their city in order to create wealth.

It's a big world out there and you need to blow your own horn.  Just putting out a brochure (often only in Dutch) does not get investors too excited.

No one will come to your area if you can't get out of your comfort-zone and start putting in some "sweat and tears" to make it happen .

Almere-Digest