Cabinet puts National Growth Fund “on hold”
Outgoing Economy Minister Mickey Adriaansens (VVD) has postponed the fourth round of subsidies for the National Growth Fund until further notice. Knowledge institutions and businesses are reacting with concern.
Adriaansens’ decision came on Tuesday, reports the newspaper NRC, after a large majority of the House of Representatives rejected two motions by D66 MP Joost Sneller. The latter had called on the House not to cut back on the Growth Fund and to quickly provide clarity on the fourth round of subsidies.
Marten Smidt is one of the scientists at the UvA who received a 200-million-euro grant from the National Growth Fund. The grant was awarded last Friday. His proposal was in the third round of the fund and now has nothing to do with Adriaansens’ decision.
However, Smidt does think the decision puts science in a “very unpleasant situation”. According to him, many investments in setting up research programmes will be jeopardised. “If round four is postponed, that will cause enormous damage, besides the fact that new investments in innovation will be lost. That will also have a negative effect on the business climate.”
The National Growth Fund was established in 2020. The cabinet wanted to invest €20 billion in projects that contribute to sustainable and structural economic growth, up until 2025. This would also benefit education and research.
“Up for grabs”
But the temptation appears to be great to spend the billions on other goals as well. Last fall, for example, the VVD submitted a motion to prevent an increase in excise taxes on gasoline and diesel with money from the Growth Fund.
The D66 then accused the VVD of seeing the fund as “up for grabs.” Outgoing ministers Dijkgraaf and Kaag also warned that the fund was not intended to plug budget holes. Still, the proposal passed.
Earlier this month, Dijkgraaf wrote to the House of Representatives that the Dutch economy would lose €90 billion until 2040 if the Growth Fund were to disappear.
Not a cost
In February, the Knowledge Coalition of Science and Business called on the House of Representatives to continue investing in research and development. Marcel Levi, Chairman of the Knowledge Coalition and of research financier NWO, regrets that the D66 motions were not adopted this week.
Investing in innovation remains important, he believes. “This is not a cost, as various studies have shown time and again. Recent research shows that every euro invested from the Growth Fund until 2035 yields €4.60 in GDP return.” According to him, this expenditure is essential to keep the Netherlands among the world leaders in science and technology.
