Follow Us

Follow us on Twitter  Follow us on LinkedIn
 

06 February 2014

Dutch nationalist Wilders outlines case for a Dutch 'Nexit' from the EU


Geert Wilders, leader of the far-right Freedom Party (PVV) that is leading in Dutch polls for May's EP elections, presented a study that claims the Netherlands would be better off if it left the EU. He urged voters to support his call for "Nexit".

The Wall Street Journal reports that at a news conference in The Hague, Mr Wilders said that a study he had commissioned found that an exit from the EU, dubbed "Nexit", would be the best option for the Dutch economy. "Any decision to leave the EU is first and foremost a social, cultural and political one. It must revolve around issues of national sovereignty, citizenship and freedom of determination", the report found. "However, there are also good reasons to believe that a nation, untied from the bureaucracy of Brussels and able to make decisions for itself rather than have imposed one-size-fits-all policies, will benefit economically too." "Leaving the EU will restore national sovereignty and boost our economy; it offers the Netherlands a way out of the crisis", elaborated Mr Wilders. "The transition costs will be temporary and manageable", he added.

The study, by the consultancy Capital Economics, claims the Dutch economy would quickly emerge from its sluggishness to brisk growth, generating billions of euros – or new Dutch guilders – in fresh revenues for debt-laden households, reports the Financial Times (subscription). "Nexit means that we no longer have to pay billions to Brussels and weak southern European countries", claimed Mr Wilders. "We can save billions by liberating ourselves from EU regulations. We can end the mass immigration and stop paying welfare checks to, for instance, Romanians and Bulgarians."

Mark Pragnell, one of the authors of Capital Economics’ report, said the Netherlands would be significantly richer if it left the EU and the single currency, despite a short period of volatility. "The economic and policy freedoms that an exit from the EU will give Dutch policy-makers, especially in the long term, provide an opportunity for the Netherlands to see rates of growth in prosperity that have looked otherwise consigned to distant history", Mr Pragnell said. If the Dutch opted for "Nexit", the country’s economy would be 10 per cent bigger by 2024, adding €9,800 in the pockets of each household over two decades, according to the report. The report states that most of the gains would come from a reduction in the costs of doing business in the Netherlands, growing exports to emerging markets, greater control of its fiscal and monetary policy, as well as ending financial contributions to the EU’s budget.

The study contradicts an official Dutch study on the benefits of EU membership, which calculated it was worth €2,000 per person every year, reports the Telegraph. Critics, quoted by the Dutch NRC Handelsblad, said the it was based on unrealistic assumptions and government officials were quick to dismiss its conclusions. They said the EU, which the Netherlands helped found in 1951, should remain the cornerstone of the export-focused Dutch economy. "The Netherlands is an economic powerhouse in Europe. We earn the bulk of our money in trade with EU countries so the Netherlands has a lot of interest in a single market with easy trade", Dutch Finance Minister and head of the Eurogroup Jeroen Dijsselbloem is quoted by Reuters to have told local media, adding that quitting the EU would be "very unwise".

An economist at The Conference Board, a rival think-tank, predicted that a Netherlands exit of the EU would be disorderly and result in high economic losses for the Dutch economy as well as the euro area as a whole. "The short-term effects of a Nexit would likely be a credit crunch, related to the denomination costs and probably capital controls", said Bert Colijn, adding: "As the Dutch have a very open economy, it actually profits a lot from its membership of the EU. Around 70 per cent of exports go to the internal European market."

Hugo Dixon for the New York Times writes that the case for a Dutch departure has been dressed up about as well as possible in the report, but is still full of holes. Arguing that the case for leaving is unconvincing, he says governments need to redouble their efforts to make Europe more competitive and take the momentum from Mr Wilders and his ilk and persuade more complacent politicians of the need for change. 

Writing on the LSE blog, Stijn van Kessel  assesses what a victory for the PVV would mean for the Netherlands’ EU membership. He argues that although current polls suggest the PVV will gain the largest number of seats in the country, this does not necessarily signal that Dutch voters support leaving the EU.

Mr Wilders' Freedom Party is leading many polls in the Netherlands ahead of elections for the European Parliament in May, where the party seeks to form an alliance with similarly eurosceptic parties from around Europe, reports the Wall Street Journal further. Polls show, however, that the majority of Dutch voters disagree with Mr Wilders' views and want the Netherlands to remain in the EU, despite much dissatisfaction over EU policies on the economy and immigration.


Meanwhile, on 13 February, Dutch Prime Minister Rutte met with Commission President Barroso. Barroso said that his visit was a clear demonstration of their commitment to the European agenda and extremely good working relationship.

"A very open and dynamic economy at the heart of the EU and its internal market such as the Netherlands is in a good position to benefit from the economic pick-up that is now underway. At EU level, our immediate priority must be to agree on a Single Resolution Mechanism for banks before the European Parliament elections in May. The Netherlands has consistently supported deeper integration in the euro area, and the Banking Union in particular, for which I am very grateful", Barroso said. 

"The upcoming European elections make it more important than ever for politicians to leave their comfort zones and engage in an open and honest debate about the benefits of a more integrated European Union. As a founding member of the European Union, the Netherlands is a natural ally in this. I think we must explain to citizens why Member States have entrusted Europe with certain tasks and competences, and how we are working together to make the European Union more efficient – which is, of course, in all of our interests."

"Subsidiarity is a democratic principle, but at the same time, we have to be honest, we cannot now undo the European project. What we have to do is to review the legislation in a way that makes it lighter, cheaper and, of course, more business- and citizen-friendly."

Full speech





< Next Previous >
Key
 Hover over the blue highlighted text to view the acronym meaning
Hover over these icons for more information



Add new comment