nrc.nl
Dutch Business Confidence Hits Record Low Amidst Rising Costs and Trade Uncertainty
Dutch business confidence has plummeted to -7.5 in Q2 2025 due to rising energy and labor costs, impacting various sectors, with labor shortages and US import tariffs adding to the economic uncertainty.
- What are the primary economic factors impacting Dutch businesses, and what are the immediate consequences?
- Everything has become significantly more expensive," says Berrie de Kruif (54), owner of All-in Glas, a Dutch glass installation company. Labor costs in his sector have risen from €35 to €65 per hour in ten years, exceeding inflation. The average cost of a kitchen door glass pane increased by €13 in 2022 due to higher energy prices for glass production. This reflects broader economic challenges faced by Dutch businesses.
- How do US import tariffs and international trade dynamics specifically affect Dutch businesses, and what are the resulting impacts?
- The rising costs, primarily driven by increased energy prices and labor costs, have decreased Dutch business confidence to a record low of -7.5 in Q2 2025, according to the CBS. This negative sentiment, lasting 14 quarters, is exacerbated by labor shortages and US import tariffs impacting businesses like De Kruif's, which sources materials from Germany and processes glass in Macedonia.
- What are the long-term implications of labor shortages, government policies, and economic uncertainty on the Dutch business landscape, and what adjustments are needed?
- While some businesses benefit from redirected trade (e.g., shorter delivery times for German glass), the overall outlook remains uncertain. The labor shortage remains the biggest challenge for most Dutch businesses, though slightly improved from last year. Government policies on sick leave, energy subsidies, and self-employed regulations add further uncertainty for entrepreneurs, highlighting the need for policy adjustments to improve business confidence.
Cognitive Concepts
Framing Bias
The article frames the narrative around the struggles of Dutch entrepreneurs, using their anxieties and concerns as the central theme. The headline (if there was one, as this is an article text) would likely emphasize the negative aspects of the economic climate. The inclusion of quotes from worried entrepreneurs early in the article reinforces this negative framing. Although it notes some positive developments, the overall structure and emphasis strongly lean toward presenting a pessimistic outlook on the Dutch economy.
Language Bias
The article uses language that reflects the anxieties of the entrepreneurs. Phrases like "Waar gaat het heen en waar is het einde" ("Where is this going and where is the end"), "bijna niet meer te doen" ("almost impossible to do"), and "somber vooruitzichten" ("grim prospects") contribute to a negative tone. While these are direct quotes, the selection and placement of these quotes amplify the negative sentiment. While the author attempts to balance this by including a statement about positive expectations of some companies, the overall negativity predominates. More neutral alternatives could include focusing more on specific numbers and less on subjective emotional responses. For instance, instead of "grim prospects", one could use "economic uncertainty" or "challenges to business profitability.
Bias by Omission
The article focuses primarily on the challenges faced by Dutch entrepreneurs due to rising costs and labor shortages, giving less attention to potential positive economic factors or government support initiatives that might counterbalance these challenges. While it mentions some small advantages from international developments (e.g., shorter delivery times for glass), these are presented briefly and do not outweigh the negative aspects. The perspectives of consumers or employees are largely absent, limiting a comprehensive understanding of the overall economic situation. Omission of data on government policies aimed at supporting small businesses could also skew the reader's perception of the situation.
False Dichotomy
The article doesn't explicitly present false dichotomies. However, by focusing heavily on the negative impacts of rising costs and labor shortages without sufficient counterbalancing information about potential solutions or positive trends, it might implicitly create a false dichotomy between insurmountable challenges and bleak prospects. The narrative subtly suggests that the situation is overwhelmingly negative, potentially overlooking resilience and adaptation strategies employed by businesses.
Sustainable Development Goals
The article highlights the challenges faced by Dutch businesses due to rising costs, labor shortages, and uncertain economic climate. This negatively impacts decent work and economic growth as businesses struggle to maintain profitability, potentially leading to job losses and hindering economic expansion. Quotes such as "Alles is veel duurder geworden. De lonen en ook de materialen" and "Als ondernemer is het bijna niet meer te doen" directly reflect these difficulties.