News item | 5/31/2023 | 13:30
The government is introducing two tools to strengthen the economic resilience of the Dutch business community. Minister Adriaansens (Economic Affairs and Climate) today launched the Economic Security Business Desk, an information and advice desk for Dutch knowledge-intensive SMEs. In addition, the Investments, Mergers and Acquisitions Security Test Act (Vifo Act) will come into force on 1 June, a law that makes it possible to test changes in control due to investments, mergers and acquisitions. Both instruments support and protect the Dutch economy and knowledge-intensive companies against unwanted knowledge transfer.
Acquisitions, mergers and other forms of investment are increasingly used by states to achieve their geopolitical goals. It has been agreed in the coalition agreement that Dutch business interests and national security will be better protected. The Cabinet is taking this further with the Economic Security Business Desk and the Vifo Act. The desk is a central point of contact for entrepreneurs with questions about economic security risks. The desk focuses specifically on knowledge-intensive SMEs, including startups and scale-ups. Entrepreneurs can contact the counter for up-to-date information, knowledge and advice on, among other things, setting up branches abroad, protection of intellectual property, and trade in technology that is suitable for both civil and military purposes (dual use) or other sensitive technology. Providers of sensitive technology work with knowledge, skills, goods and techniques that could affect national security if leaked.
Minister Adriaansens: “This desk will make a big difference in increasing economic security for entrepreneurs. As a government, we not only want to warn of dangers, but also help entrepreneurs to do something about them. Preferably as easy and accessible as possible. The Economic Security Business Desk offers one central counter where you as an entrepreneur are helped with specific and concrete questions about who you can do business with by specialists from various ministries. That way you don’t have to look for the right expert yourself.”
The Business Office for Economic Security is a collaboration between several ministries and is coordinated by the Netherlands Enterprise Agency (RVO). On the website of the counter, entrepreneurs can find up-to-date information and knowledge about various topics related to economic security, including the export of strategic goods and information about the Vifo Act. SME entrepreneurs can also ask advice from the counter about possible risks and the measures they can take against them. The counter can be found at www.economicsecurity.nl/.
The Vifo Act introduces a safety test for vital providers (companies of such great importance to Dutch society that disruptions or outages can lead to disruption), managers of business campuses and companies in the field of sensitive technology. The safety check in the law obliges investors and companies to report changes of control to the Bureau Toetsing Investments (BTI). The BTI advises the Minister of Economic Affairs and Climate Policy and the Minister of Justice and Security whether a national security risk is present. The ministers can then attach conditions to the investment or, in extreme cases, prohibit it.