May 2009 - Association of Dutch Businessmen

Business news
Sources: Het Financieele Dagblad and Reuters
Far fewer visitors to
AutoRAI car show
This year’s AutoRAI car show in Amsterdam
attracted some 22,000 visitors, well below
the 400,000 who visited the show two years
ago. Nevertheless, the organisers said
the show had been successful considering
the economic downturn and declining car
sales. The number of new cars sold in the
Netherlands fell 25% over the first three
months of this year.
Recession hits Red
Light District
The women who sit in the windows of
Amsterdam’s Red Light District are also
feeling the economic crisis. “Fewer clients,
higher prices for the rooms and more clients
who bargain to pay less.” “Compared to
seven months ago it is really bad,” says
Che from Mexico. “Clients say they don’t
have any money. They want to do it for
30 or 35 euros. Then you just do it.” The
women say that some days they only earn
enough to pay for the room - in January
the price was raised from 50 to 75 euros.
A federation which represents 250 of the
400 escort agencies in the Netherlands says
the situation is “drastic”. Metje Blaak says
she tries to comfort her girls - she says the
same thing happened during the oil crisis in
the 1970s. She blames the decline in clients
and income on the media “who squeal and
bleat”. “It scares people.” She says every
evening people hear how bad things are.
“Then people keep a tight hand on their
wallets. But money is meant to roll.”
Chinese Telecom
Company ZTE Picks
Netherlands for EU HQ
Chinese telecom company ZTE is to
locate its European headquarters in The
Hague. Its European distribution centre
will also be in the Netherlands. ZTE
made its plans known to Economic Affairs
State Secretary Frank Heemskerk, who is
visiting China this week. “This once again
demonstrates that the Netherlands is the
gateway to Europe, both logistically and
electronically,” he said. ZTE says it is the
biggest bourse-listed maker of telecom
equipment in China. The company had
sales of 30 billion yuan (3.3 billion euros)
in the first nine months of this year; it
employs about 60,000.
EU Commissioner will investigate takeovers of
Fortis and ABN Amro
Reports on European Competition Commissioner Neelie Kroes’ announced that
she will investigate the government takeovers of Fortis Nederland and ABN Amro.
The Netherlands may have violated EU regulations on state support by providing
cheap loans to Fortis Nederland and ABN Amro. Finance Minister Wouter Bos was
greatly surprised when he heard the news on Wednesday night and said it was all
a misunderstanding. Finance ministry spokesperson Lies Weitenberg says there is
no reason for an investigation: “The minister and Ms Kroes have met to discuss any
additional information she might need to evaluate the provision of state support.”
Both Fortis Nederland and ABN Amro have refused to comment. Ms Kroes did not
question the takeover of the banks per se, but said that the interest rate charged
by the Dutch state was so low it seemed intended to provide the bank with cheap
financing. Also, the 6.5 billion euros Mr Bos paid for ABN Amro may have been in excess
of its actual market value. Sources in Brussels say the Dutch finance minister counted
on the benevolence of the Dutch Euro Commissioners, whereas Ms Kroes wants to
make clear she does not favour her native country.
Dutch banks await
‘wave of claims’
Dozens of private individuals are planning
to take their banks and asset managers
to court for failing in their duty during
the credit crisis. Many of the complaints
focus on very long-term loans known
as perpetuals. Private investors have
sunk hundreds of millions of euros into
perpetuals over the past few years but
they have been hard hit by the crisis.
In some cases, their value has shrunk by
more than 90%. ING and Van Lanschot are
often mentioned by lawyers preparing to
take legal action for investors.
Average Dutch adult
26,000 euros poorer
The accountancy firm Price-Waterhouse-
Coopers estimates that the average Dutch
adult is worth approximately 26,000 euros
less since the financial crisis began in
2008. The losses total 325 billion euros,
a sum approximately equal to half the
Netherlands’ gross domestic product.
The firm attributes the loss primarily to
falling share values and house prices,
and to the reduced value of pensions. It
says it expects the losses to lead to less
consumer spending, especially if house
prices continue to fall.
Golden handshake receives angry reception
The one-million-euro golden handshake awarded to Willem van Leeuwen, the chair of
Aedes, an umbrella organisation for Dutch housing corporations, has come in for sharp
criticism. This began when the Dutch Housing Confederation (Nederlandse Woonbond),
a national association representing renters and those seeking accommodation, said on
Saturday that it was astonished and shocked by the payout given to Mr Van Leeuwen. It
said such a large bonus was unacceptable. The association’s comments were later echoed
by Housing Minister Eberhard van der Laan, who said he was unhappy about the bonus
and that it conflicted with the idea the housing corporations should operate in a sober
and appropriate manner. However, the minister pointed out that there are no judicial
steps he can take in the matter. A large majority of MPs are said to be in agreement with
Mr Van der Laan, with comments ranging from “out of all proportion” to “scandalous”.
Mr Van Leeuwen stepped down after 27 years with Aedes, following a report critical of
his work for the organisation, which last year posted losses of three million euros. The
controversial bonus was approved by Aedes’ board of governors, under the direction
of the Labour Party’s Hans Alders. Mr Alders is a former Queen’s Commissioner for the
province of Groningen. Interviewed by the TROS broadcasting company, Mr Van Leeuwen
said he did not understand what all the commotion was about. He said the bonus was
normal given that he had worked for Aedes for 27 years.
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Vol.19 • No. 4 • May 2009