The Hague, Netherlands – A new analysis by economist Jaap van Duijn, published in De Telegraaf, challenges the long-held perception of the People’s Party for Freedom and Democracy (VVD) as a strong economic steward, revealing a decline in economic growth during their nearly three decades in power.
Under the leadership of current VVD leader Dilan Yesilgöz, the party is campaigning on a platform of “Radical Economic Growth,” citing a perceived rise in global radicalism as justification. However, Van Duijn’s assessment paints a contrasting picture of the VVD’s economic record.
Van Duijn,a former chairman of the Board of Directors of Robeco and a lecturer at erasmus University and TU Delft,found that economic growth under the VVD averaged only 1.5% during the 14 years Mark rutte served as Prime Minister (2010-2024), significantly lower than the 3% frequently enough claimed by party members. The VVD has been a consistent presence in Dutch governing coalitions since 1994.
The analysis indicates that this growth was not driven by innovation, but largely attributed to an influx of labor migrants. The labor force grew by an average of 1.3% annually, while labor productivity only increased by 0.4% – a post-war low. This pattern was consistent for the decade prior to Rutte’s premiership as well.
Van Duijn concludes that under VVD governance, prosperity has stagnated and well-being has declined. Furthermore, the number of rules has increased, and the tax burden has reached unprecedented levels, accompanied by a important rise in the number of government employees.
Despite these findings, current polling data suggests limited impact on voter sentiment. While the VVD has seen a decline in recent polls, currently projected to win 16 seats in the upcoming elections, this is largely attributed to controversies surrounding Yesilgöz’s leadership, including a widely criticized tweet that led to threats against singer Snelle and his subsequent relocation. The economic critique, according to the analysis, has not yet gained traction with voters, potentially due to media coverage.
Context: the Dutch Economic Landscape
The Netherlands, a nation with a GDP of approximately $1.03 trillion (2023, World Bank), relies heavily on international trade, especially through the Port of Rotterdam, Europe’s largest port. Key sectors include agriculture, chemicals, and logistics. The Dutch economy has historically been characterized by a strong social market economy, balancing free market principles with social welfare provisions. Recent economic challenges include inflation, energy prices, and housing shortages. The VVD traditionally champions a fiscally conservative approach, advocating for lower taxes and reduced government spending, but the analysis suggests this has not translated into the economic outcomes the party promises.
