Cabinet presents Operation Beethoven: ‘Also wants guarantees from ASML’

The government is expected to present Operation Beethoven today. This plan should persuade ASML to stay in the Netherlands, including by strengthening the business climate. The plan consists of two parts, says political reporter Mats Akkerman: investment in the Eindhoven region and tax measures.

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The investment in the Eindhoven region concerns an amount of 1.3 billion euros in investments in TU Eindhoven intended for housing construction, infrastructure and the training of technical staff. The other part concerns tax measures that the business community is not happy with, such as the reduction of the expat scheme, the tax on the purchase of own shares and the increase in rates in boxes 2 and 3. The House of Representatives and the cabinet want alternatives for that tax part, but those plans won’t happen today.

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Personal contribution and guarantees

“It seems that there was discussion until the last minute, because the region also has to make a contribution,” says Akkerman about Beethoven. The government also wants guarantees from ASML that the company will not move abroad next year after all these investments. ‘The expectation is that it will be finalized today and passed by the Council of Ministers.’

National Growth Fund

What will everything be paid for? Approximately 500 million of the investment in the Eindhoven region has already been reserved and will be brought forward, the remainder will probably come from the moribund National Growth Fund. There were already doubts about its continued existence, but there are still several billions for Research & Development, which the government wants to transfer to the region.

Financing the other part is significantly more difficult, says Akkerman. ‘Because the tax on the purchase of own shares and the reduction of the expat scheme, that money is used for, for example, the increase in the minimum wage and the related benefits. The House of Representatives has already voted for this and that will also happen on July 1. Ergo, another cover must be sought.

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Job for Van Rij

And that task lies with outgoing State Secretary Marnix van Rij of Finance, who has put together a number of options from which the House can choose again. Because Van Rij reasons, this cabinet is outgoing and not authorized to make such choices. So the ball is back in the House’s court.

Van Rij has outlined many different options that will ‘all hurt’, such as abolition of the low VAT rate for a number of things, an increase in tax for homeowners, an increase in profit tax or an increase in gift and inheritance tax.