The Dutch government, on Thursday, announced that it will spend €2.5B to improve the Eindhoven region’s transport and other infrastructures, including the availability of technical education.
As part of the plan, the cabinet will release €1.28B from the National Growth Fund and will contribute an additional €450M on top of that. Economic Affairs Minister Micky Adriaansens stated that the Eindhoven region will fund the remaining €780M.
It is called Project Beethoven.
The announcement comes after large businesses expressed discontent with domestic policies in the Netherlands.
NXP and ASML, the third largest company in Europe by market capitalization, have shown interest in relocating some of their operations outside the Netherlands.
Earlier this month, ASML’s CEO Peter Wennink complained about the policy, including plans to end a tax break for skilled migrants, which would make it harder for ASML to hire vital staff.
ASML provides chipmakers with hardware, software, and mass services to produce the patterns of integrated circuits (microchips).
Headquartered in Veldhoven, the Netherlands, ASML has offices across Europe, the US, and Asia.
Meanwhile, dredging firms Boskalis and Van Oord have both made moves to expand their businesses in the United Arab Emirates.
The plan
As a result, the government announced plans to offer alternative tax measures for entrepreneurs in the short term. The decision on the matter will be up to both houses of Parliament.
Also, Project Beethoven is rumored to include a proposal to roll back the cuts to the 30 per cent ruling, but there was no announcement made after the Council of Ministers meeting on Thursday afternoon, reports Reuters.
The plan is set to focus on the Brainport Eindhoven high-tech campus, emphasising the microchip sector.
Around €1.06B will be spent on infrastructure improvements, including expanding the Eindhoven Centraal train station, with better connections to domestic and international train services, as well as more express buses.
One bus will connect the station to Veldhoven, where ASML is headquartered. The aim is to connect all the high-tech campuses in the region with more funds earmarked for road and highway improvements.
The plan also proposes a budget of €425M to build and develop 20,000 homes by 2030. The funding will be used to enhance the quality of life in the area where the new homes will be constructed.
The package will only move forward in its proposed form if ASML specifically stays in the country, says the Cabinet.
“In these measures, the Cabinet assumes that ASML will make further investments in the Netherlands and maintain the location of its statutory, tax, and actual headquarters in the Netherlands,” the Cabinet said.
ASML’s response
Veldhoven-based ASML Holding, a manufacturer of chip-making equipment, welcomed the plans and said they would benefit not only tech firms in the Eindhoven region but the Netherlands as a whole.
ASML is optimistic about the future growth of the computer chip industry and expects to see significant growth in the Netherlands.
Read the orginal article: https://siliconcanals.com/news/dutch-government-2-5b-to-keep-asml/
