Brexit: advantages or disadvantages for the Netherlands?

Brexit has been a hot topic more than once in the last few weeks.  The negotiations over a soft or hard Brexit raise a great deal of questions, also in relation to business here in the Netherlands.

Brexit’s influence on the Stock Exchange

For the Dutch Stock Exchange, Brexit can turn out to be a good thing.  After all, a recent study carried out by the Financial Markets Authority (AFM) shows a remarkable increase in in the number of London stock exchange companies seeking, and being granted, permission to trade here.  It is estimated that approximately 30-40% of the European capital market will move to the Netherlands.  Because of this, the Netherlands, and the Randstad in particular, is well on the way to becoming the financial trade centre of the reformed Europe.

The influence of Brexit on the Economy

According to the Financial Times, the central location and the business-friendly climate are the biggest attraction factors in the Netherlands.  Thus, along with leading stock exchange companies such as London Stock Exchange and Chicago Board Options, a number of flash traders and banks have their eye on the Randstad.  Similarly, American, Japanese and British companies trading in “own risk”, or deductibles, are coming to our shores.  The whole Dutch economy can benefit from this positive vibe, because the demand for knowledge-intensive and service-providing companies is also increasing as a result.  More international companies in particular are looking for more capacity, expertise, and IT systems.

Can the advantages outweigh the risks?

Nevertheless, critics are warning against possible risks, such as an escalation in the increase in the price of property in Amsterdam, for example.  Above all, the possibility of a new economic crisis is making critics nervous.  The question then, precisely, is whether the advantages of the financial sector can offset the costs.

Please feel free to contact us for more information.