Companies warn the Dutch government on education cuts

24 major Dutch companies and 15 startups have penned an open letter to the cabinet, expressing grave concerns over proposed budget cuts in education, research, and innovation. The letter, initiated by employers federation VNO-NCW and Universities of the Netherlands (UNL), warns that these cuts threaten the country's future economic prosperity and competitiveness. With the Netherlands slipping from 2nd to 7th place in the WIPO innovation ranking, business leaders argue that investing in knowledge and innovation is crucial for maintaining a productive economy.

The appeal comes as the government plans to slash over €1 billion from education budgets, sparking fears of long-term damage to the nation's growth potential. Companies, including NXP Semiconductors, Siemens, and Johnson & Johnson, signed the open letter. The business leaders argue that these sectors are vital for nurturing the skills and knowledge needed to tackle future economic and societal challenges.

Impact on economy

One critical point raised in the letter is the potential loss of large-scale investments in public-private innovations. The abolition of the National Growth Fund, from which €7 billion remains to be allocated, could significantly hinder collaborative efforts between academia and industry. These partnerships are crucial for driving technological advancements that benefit the entire nation. The signatories stress that cuts to education and innovation are, in essence, cuts to the future earning capacity of the Netherlands, a sentiment echoed by the Draghi report, which highlights the importance of substantial investment in these areas to maintain European competitiveness.

In addition to the immediate impact on innovation, the proposed budget cuts pose a broader threat to the Dutch economy. As the OCW budget is set to decrease by €3.5 billion from 2024 to 2029, education spending as a percentage of GDP will fall from 5.1% in 2024 to 4.9% in 2028. This reduction affects the quality of education and the country's global standing as a technology hub. Research has consistently shown a strong link between education spending and economic growth, making these cuts particularly concerning for long-term prosperity.

Industry leaders voice their concerns

Prominent business leaders have voiced their concerns about the government's direction. Ingo Uytdehaage, CEO of payment company Adyen, highlighted the importance of education and innovation for maintaining technological leadership. He warned that without continued investment, the Netherlands risks losing talent essential for its competitive edge. Similarly, André van Troost of robotics company Lely pointed out that his company's success is partly due to leveraging the expertise of Dutch universities, cautioning that the cuts could impact their ability to attract skilled graduates.

VNO-NCW chair Ingrid Thijssen emphasized to that investments in research and education are not just expenses but are vital for the country's future economic health. By fostering innovation, the Netherlands can ensure it remains competitive globally. The signatories urge the government to reconsider its plans and prioritize funding for sectors that will drive long-term growth and societal well-being. In this urgent appeal, they highlight that the decision to cut education budgets might save money now but could cost the country significantly more in the future.

As Tamar van Gelder, chair of teacher trade union AOb, indicated, all options, including strikes, are on the table to oppose these cuts, showing the depth of concern across sectors.