Fireworks industry demands €895 million in compensation if national ban is enforced
The Dutch fireworks industry is demanding nearly 900 million euros in compensation if a nationwide ban on consumer fireworks is implemented. Fireworks importer Leo Groeneveld, speaking on behalf of the trade association Belangenvereniging Pyrotechniek Nederland, told NOS that the sector is requesting 895 million euros in financial support from the government to offset the losses businesses would face under a complete prohibition.
"That is an extreme amount of money, but that is how much has been invested. And that is how much it will cost if companies have to stop selling fireworks," Groeneveld said.
According to Groeneveld, many businesses derive a significant portion of their annual revenue from fireworks sales. "Many companies have structured their business operations around selling fireworks. Some businesses are entirely dependent on fireworks sales. For them, a ban would mean bankruptcy."
This week, the VVD backed a proposed law from GroenLinks-PvdA and the Party for the Animals that would introduce a full ban on consumer fireworks. With VVD's support, the proposal is close to securing a majority in the Tweede Kamer, with 74 seats in favor. Denk could provide the decisive votes, but the party has not yet disclosed its position. The Tweede Kamer is scheduled to debate the proposal on Thursday.
The VVD had previously expressed doubts about the fireworks tradition in the Netherlands. VVD lawmaker Ingrid Michon stated that previous restrictions had failed to curb New Year's Eve disturbances. "Firecrackers are already banned, all rockets are prohibited. Yet, we still cannot ensure a peaceful night."
The VVD has attached conditions to its support, including an "effective enforcement plan" from police and municipalities. The party also wants to allow fireworks to be set off by associations and for local fireworks displays to continue. Finally, the VVD insists that the industry must receive compensation.
State Secretary Chris Jansen recently presented cost estimates for compensating fireworks importers and retailers in a letter to the Tweede Kamer. If an immediate ban were implemented, Jansen estimated compensation costs between 100 million euros and 150 million—roughly equivalent to the annual revenue of the fireworks sector. The previous New Year's sales totaled around 115 million euros.
If the ban takes effect in 2026, the compensation cost is projected at 50 million euros. Jansen warned that if the ban is implemented beyond 2026, compensation might not be legally possible due to European Union restrictions on state aid.
Groeneveld emphasized the investments made by the fireworks industry to comply with stringent safety regulations. "The Netherlands has the strictest rules for fireworks storage, introduced after the Enschede fireworks disaster. Companies have invested heavily to meet these safety standards. A ban would render these investments worthless overnight. So, I understand why entrepreneurs are demanding significant compensation."
