Netherlands: Business environment at a glance

Netherlands: Business environment at a glance. Check it out:
(EIU Viewswire Via Thomson Dialog NewsEdge) COUNTRY VIEW

FROM THE ECONOMIST INTELLIGENCE UNIT

Policy towards private enterprise and competition

2006-07: Increased energy, telephone and broadband competition, but incumbents remain dominant.

2008-10: Some liberalisation of sectors not covered by the new anti-cartel law, such as the media and possibly healthcare.

Policy towards foreign investment

2006-07: No significant changes to generally favourable conditions.

2008-10: Some tax privileges may have to be reduced or eliminated under pressure from the OECD and the EU.

Foreign trade and exchange controls

2006-07: An EU-China agreement will restrict imports of some textile products from China.

2008-10: Low chance of success in reaching a new agreement on global trade liberalisation. Trade liberalisation continues, albeit slowly, through unilateral, bilateral and regional arrangements

Taxes

2006-07: Reduction in the rate of corporation tax to 25% in 2007.

2008-10: Further reductions in corporation tax possible. Rises in indirect and environmental taxes. New efforts to reduce the use of mechanisms to avoid tax payments.

Financing

2006-07: Regulatory controls over financial operations and dealers strengthened.

2008-10: Dutch banks and insurance companies to reinforce alliances in more open EU market.

The labour market

2006-07: Companies face higher costs for the disability benefit scheme, but otherwise moderate wage cost increases.

2008-10: Greater efforts to expand labour force participation through financial incentives. Trade unions will remain influential, especially if a more left-wing government were to take over after the November 2006 election.

Infrastructure

2006-07: Upgrading of Rotterdam port, as well as of rail, road, waterways and telecommunications infrastructure. The "Betuwelijn", a goods rail connection between the port of Rotterdam and the Ruhrgebiet in Germany comes into operation.



2008-10: Expansion of Amsterdam's Schiphol airport and improved rail links with Germany. High-speed train to Belgium and France enters into service.

Copyright 2006 Economist Intelligence Unit
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