Brexit could increase Dutch bankruptcies, dampen economic growth

By Janene Pieters on May 25, 2016 - 11:15
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The Union Flag on the Palace of Westminster in London (Photo: Ввласенко/Wikimedia Commons). (The Union Flag on the Palace of Westminster in London (Photo: Ввласенко/Wikimedia Commons))

Should the United Kingdom decide to leave the European Union, the number of Dutch companies that go bankrupt could increase by 2.0 to 2.5 percent, according to estimations from credit insurer Euler Hermes. The Brexit could also dampen economic growth in the Netherlands over the next three years - the economic growth will be 1.5 to 2.4 percent lower, NU.nl reports.

According to Euler Hermes, the Netherlands will be affected disproportionately hard, like Belgium and Ireland. "Not only because they are neighbors with the United Kingdom, but also because the Netherlands and Belgium in particular are important European trading hubs", Euler Hermes risk manager Johan Geeroms explained.

Should the Brits decide to leave the EU, Euler Hermes differentiates between two Brexit options - a "soft" option and a "hard" option. Which option will become reality depends on whether Britain decides to sign a free trade agreement with the European Union after 2019.

The Britons will be casting their vote on whether or not the United Kingdom should stay in the EU in a referendum on June 23rd.

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