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42 ECONOMY AWEMainta Diabierna, 15 September 2023
Netherlands Urged to Revamp Policies
for Climate, Labor, Health, and Economy
THE Netherlands faces pressing challenges in the realms of plastic rather than recycle old plastic. Similarly, hiring
climate, the labor market, healthcare, and future economic temporary workers repeatedly is often more cost-effective
prospects. Consequently, the government must impose than retraining permanent staff.
stricter requirements on businesses, reduce subsidies,
and demand greater long-term clarity, states the Scientific The WRR advocates for a shift in policy, moving from
Council for Government Policy (WRR) in a report released pampering to challenging and motivating businesses.
ahead of Prinsjesdag (Prince’s Day, the annual presentation “Ensure that entrepreneurs bring forth the innovations we
of the government’s plans) and upcoming elections. so desperately need—recycling, education, healthier nutri-
tion: let companies make a difference.”
According to the WRR, the business sector holds significant
potential to address these issues, but this potential remains The independent advisory body suggests that the govern-
largely untapped. The government could play a pivotal role ment should exercise caution when providing subsidies and
in unlocking this potential but is currently falling short of its tax incentives to businesses. “Offer support only as a tempo-
duties, as per the WRR. rary push for societal solutions.”
“The government policy too often shields established In conclusion, the Netherlands is facing multifaceted chal-
companies, rendering them passive and hindering inno- lenges that require a proactive approach from both the
vation within the business sector. Instead of challenging government and the business sector.
and motivating businesses, government policies frequently By incentivizing innovation, promoting sustainable prac-
provide the wrong incentives,” the WRR argues. tices, and reevaluating subsidy policies, the country can
better address climate change, labor market issues, health-
Businesses Profit Easily from Harmful Practices care, and long-term economic viability. The WRR’s report
Furthermore, the WRR observes that companies often profit serves as a call to action for a more dynamic and respon-
easily from activities that harm both people and the envi- sible approach to policy making and business practices in
ronment. For instance, it is often cheaper to produce new the Netherlands.
