The Netherlands must recalibrate its economic policy to better withstand increasing geopolitical pressure, says Sandor Gaastra, Secretary-General of Economic Affairs. In a world where economic instruments such as trade restrictions are increasingly used as leverage, focusing on efficiency and openness alone is no longer sufficient. Economic power must be explicitly taken into account to keep the Dutch economy resilient. A proactive technology policy is crucial in this regard.
Economic dependencies are increasingly posing a geopolitical risk, particularly in the areas of digital technologies and critical raw materials. It is precisely in these strategic domains that the Netherlands depends on a limited number of major powers, increasing the vulnerability of our open economy. At the same time, open global trade remains essential for Dutch prosperity, requiring a careful balance between openness and resilience.
Economic Power as a Collective Interest
A stronger economic position stems from the choices made by companies, but has broad societal impacts. This justifies a more active role for the government. Gaastra therefore advocates for policies that not only defensively limit risky dependencies, but also take an offensive approach to strengthening strategic positions, even if this entails costs.
Offensive technology policy, stronger European cooperation, and new strategic partnerships
At the heart of this is an offensive technology policy, aimed at strengthening ecosystems around strategic technologies in which the Netherlands can remain internationally relevant. This requires targeted investments in key digital technologies and the availability of critical raw materials. In addition, a collectively stronger European Union and new strategic partnerships with emerging economies are needed to spread dependencies and structurally strengthen economic resilience.
