Report: billion-euro infusion for Brainport in preparation (update)

The Dutch government is dotting the i’s on a plan to placate ASML, NXP and other high-tech companies, sources told NOS (link in Dutch). The Dutch news outlet reports that over a billion euros has been set aside for investments in the Brainport Eindhoven region, including infrastructure, housing and expansion of Eindhoven University of Technology and other educational institutions. The caretaker cabinet is also proposing to abandon plans to tax share buybacks and looking to reverse cutbacks in expat tax benefits.

Plans of a government task force codenamed “Beethoven” to address concerns of high-tech multinationals about the Dutch business climate first leaked on 6 March. Both ASML and NXP have hinted at taking future expansions abroad if their ability to recruit talent in the Netherlands is compromised by throttling the inflow of migrants and foreign students. New tax legislation hit a sore spot as well.

To win over these and other companies, the cabinet is reported to commit a 900-million-euro investment in the Eindhoven region’s education sector, chiefly at the university level but also for vocational institutions. Another 500 million is being set aside to improve highway and rail connections, and 100 million will flow toward the construction of housing.

Update: following a cabinet meeting on Thursday, minister Micky Adriaansens (Economic Affairs) has announced the investment will total 2.5 billion euros, of which the national government will pay 1.7 billion euros. Local governments in the Brainport region have committed to invest the remainder.