Netherlands Urged to Spend 176 Billion on Tech

The Netherlands needs a reality check. That is the blunt message from Peter Wennink, former CEO of ASML, who in 2023 famously described his country as becoming "fat, dumb and happy." Now his government-commissioned report lays out what it will take to maintain Dutch prosperity: 176 billion dollars in tech spending and painful labor market reforms that will not sit well with workers.

The report, released December 12, echoes the European Union competitiveness recommendations from the 2024 Draghi report. Wennink calls for spending between 151 billion and 187 billion euros (approximately 176 billion dollars) over the next decade on projects ranging from AI data centers to drones and small modular nuclear reactors. Without this investment, the Netherlands cannot sustain spending on healthcare, defense, and the energy transition while maintaining current living standards.

The timing matters. The report arrives as coalition talks continue to form a new Dutch government following political instability. Rob Jetten of the centrist D-66 party, positioned to become prime minister as election winner, told news agency ANP he would like to "grab the report with both hands."

Wennink spent a decade leading ASML to become Europe's largest technology company by market value. He was asked to advise the government precisely because of his reputation for bluntness. The report does not disappoint on that front.

The Labor Market Reforms Workers Will Hate

Here is where the report gets controversial. Wennink proposes fundamental changes to how the Dutch labor market functions, including measures that directly target worker protections.

Companies should have more freedom to fire workers, according to the report. Currently, Dutch labor law makes restructuring expensive and difficult, limiting how companies respond to changing market conditions. Wennink argues that startups and mid-sized firms cannot expand under current restrictions. Permanent jobs need to become easier to adjust while flexible positions should provide stronger guarantees.

The unemployment benefit cut represents the most direct hit to worker security. The Netherlands currently provides two years of paid unemployment benefits. Wennink wants that slashed to one year. His argument: the current social security framework is outdated and no longer suited to today's economy.

CNV union leader Piet Fortuin criticizes the proposals as misguided. The report also suggests ending the second year of employer-paid sick leave. Fortuin warns this will likely increase the number of people entering WIA (disability insurance). "A significant group risks being sidelined because re-entering regular employment becomes harder," he told NL Times.

Fortuin adds that unions were not consulted in preparing the report, calling that "strange." It is a telling omission. A report about restructuring labor protections written without input from labor representatives signals whose interests drive the recommendations.

Why Dutch Companies Keep Leaving

The backdrop makes Wennink's urgency clearer. Major Dutch companies including Shell and Unilever have shifted operations out of the Netherlands in recent years, citing a hostile business climate. ASML itself threatened to leave in early 2024, partly over plans to restrict international student inflows.

The Netherlands faces structural challenges that go beyond worker protections. There is an acute shortage of skilled labor despite unemployment at just 4 percent in September, well below the euro area average of 6.3 percent. Companies desperately need workers but cannot find them.

A nitrogen emissions dispute has paralyzed construction for years. The issue affects ASML directly. Wennink proposes paying farmers to close dairy farms to break the impasse, as cattle farming generates major nitrogen emissions in protected natural regions. It is a politically toxic suggestion in a country where agricultural interests hold significant sway.

The report argues the Netherlands can only maintain prosperity with economic growth of 1.5 to 2 percent annually, well above today's 0.5 percent forecast. Meeting that target requires massive investment in knowledge, innovation, and infrastructure.

Despite Anti-Immigrant Sentiment, Tech Needs Foreign Workers

One of the report's most striking recommendations contradicts current political winds. Despite the country's anti-immigrant mood, Wennink says the Netherlands should welcome skilled migrants. He calls for an "active and targeted migration and settlement program that encourages international talent to come to the Netherlands and stay to work here."

He focuses specifically on students and knowledge workers in engineering, ICT, energy, and biomedical technology, including those from outside Europe. The report criticizes budget cuts targeting international students, noting they actually generate revenue for the treasury.

ASML employs 22,860 people in the Netherlands, approximately 9,000 of whom are non-Dutch citizens. The company also employs around 19,500 people internationally. In 2023, ASML reported record revenue of 27.6 billion euros, marking a 30 percent increase from the previous year.

The region around Eindhoven, where ASML is headquartered, hosts nearly 20 percent of Dutch R&D talent. R&D expenses in the region amount to 3 billion euros annually, accounting for more than 11 percent of Dutch GDP according to Provincie Noord-Brabant and Brainport Eindhoven.

All parties currently discussing forming a new government have called for tougher immigration controls. Wennink's earlier warning about this trend was direct: "Be careful about what you wish for. We will go where we can grow."

The Innovation Commissioner Proposal

Wennink proposes creating a "Government Commissioner for Future Prosperity" to cut through bureaucratic obstacles. The commissioner would accelerate implementation of strategic initiatives and improve coordination between government bodies and private companies. The role would not make political decisions, that authority would remain with Cabinet and Parliament, but would help overcome interministerial hurdles that currently slow major projects.

It is an acknowledgment that the Netherlands' governing structure may not be suited to the decisive action required. The country has fallen in global competitiveness rankings, dropping from fourth place in 2021 to 10th in 2025 according to the World Competitiveness Ranking. Economic performance fell from second to 19th place during the same period.

The report identifies difficult choices across multiple sectors. Energy-intensive industries like steelmaking, refining, and chemicals should ideally remain in the Netherlands due to their strategic value. The same priority does not apply to industries like paper production, which may need to shift operations abroad.

What This Means for Dutch Workers

The report presents prosperity as a choice between worker protections and economic growth. Cut unemployment benefits. Make firing easier. Welcome foreign workers. Invest massive sums in technology. These are the prescriptions for maintaining Dutch living standards.

Workers facing benefit cuts and easier termination might question whose prosperity the report prioritizes. The absence of union consultation in drafting recommendations about labor protections speaks volumes about whose voice mattered in shaping this vision.

The Netherlands ranks fifth in the World Happiness Report, behind only Scandinavian countries. It remains one of the richest countries in the world. That prosperity faces pressure from global competition, demographic challenges, and political instability. Whether the answer is reducing worker security or finding ways to invest in both people and technology remains the fundamental question Dutch politics must answer.

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