European parliament elections

May 30, 2024


As the business community in the Netherlands eagerly awaits the concrete plans of the new government, another significant event is on the horizon: the European Parliament elections. Scheduled to begin on June 6, 2024, these elections will play a crucial role in shaping policies that impact entrepreneurs across the continent. 

Election overview

Between June 6 and June 9, European Union (EU) member states will conduct their elections for the European Parliament. The Netherlands is among the earliest to vote, with its polls opening on June 6. In this election, 720 seats are up for grabs, 31 of which will be allocated to Dutch representatives. Although national parties will be listed on the ballots, they form part of larger political groups at the European level. For instance, VVD and D66 belong to the same European faction, whereas PvdA and GroenLinks, which collaborate domestically, are part of different European groups. 

Entrepreneurial concerns: Regulatory burden

Entrepreneurs have expressed significant concerns about the growing regulatory pressures from the EU. The European Commission proposes new regulations, which require approval from the European Parliament. Recent years have seen a surge in overarching rules affecting businesses, such as the AI Act for artificial intelligence regulation, the Corporate Sustainability Reporting Directive (CSRD), and a minimum corporate tax rate. 

According to a survey conducted by the Dutch employers' organization VNO-NCW, 80% of entrepreneurs find the European regulatory burden excessive. Half of the respondents identified reducing restrictive regulations as the top priority for the EU over the next four years, surpassing issues like migration (39%) and defense (35%). Entrepreneurs also highlighted the need for a more harmonized internal market, particularly in simplifying procedures for permits and aligning tax rules across member states. The current discrepancies make cross-border business operations particularly challenging. 

Revenue sources

Taxation remains a hot topic in the European debate. At present, the EU does not directly tax individuals or businesses, but discussions are underway about the potential for the EU to generate its own revenue. Proposals include taxes on pollution, financial transactions, or an 'internal market tax'. Opinions on this matter vary significantly among political parties. Parties like ChristenUnie, D66, GroenLinks, PvdA, and Volt support the idea of the EU having its own revenue streams, while others oppose it or have not taken a clear stance. Most parties agree, however, on maintaining the principle of unanimous consent for any tax reforms within the EU. 

Higher minimum tax rates

Some political parties are pushing for higher minimum corporate tax rates. GroenLinks and PvdA advocate increasing the current 15% minimum rate to 18%, while Volt proposes a 22% rate. The Party for the Animals suggests a minimum corporate tax rate of 35% for large companies. Other parties are open to raising the minimum tax rate but have not specified a percentage. Meanwhile, the SGP emphasizes that member states should implement the agreed-upon 15% minimum tax rate, arguing that further EU intervention is unnecessary. 

As the European Parliament elections approach, these fiscal and regulatory issues will be pivotal for entrepreneurs. The outcomes will significantly influence the business environment in the EU, making these elections critically important for the entrepreneurial community.