Economy

Rent rises slowed in July compared to the previous two years, with Dutch tenants paying an average of 4.4 per cent more than last year according to Statistics Netherlands (CBS). While private sector rents climbed by 4.5 per cent—seemingly topping the government's 4.4 per cent annual limit—CBS chief economist Peter Hein van Mulligen clarified that the cap only applies to existing contracts, leaving landlords free to set higher prices for new tenants and pushing up the overall average, whereas tenants remaining in their current homes saw a more modest 3.8 per cent increase.

The AEX opened virtually flat on Friday morning as investors stood by for the crucial US employment report due later today, which—alongside inflation figures—will heavily influence the Federal Reserve's next interest rate decision. Although rising oil prices had heightened rate hike fears earlier in the week, market anxiety eased on Thursday following comments from Fed Governor Christopher Waller in favour of keeping rates on hold if inflation cools, leaving Amsterdam's benchmark index trading fractionally higher at 1,105.02 points shortly after the opening bell.

Rabobank expects the Dutch economy to grow by 1.3 percent this year and 1.1 percent next year. Higher consumer spending and government expenditure support growth, but energy prices, geopolitical tensions and political uncertainty continue to weigh on the outlook.

Fuel prices in the Netherlands have reached new highs, with petrol setting a record price on Wednesday and diesel also becoming more expensive. The increases are linked to the Iran War and disruptions in the Strait of Hormuz, while surveys show growing concern among motorists about the impact on their finances.

Several Dutch laundries will face a 24-hour strike on Wednesday after negotiations on a new collective labour agreement collapsed. Workers are demanding higher pay and measures to reduce workload, while employers say they have already made a substantial offer.

The Dutch government will reduce its planned increase to childcare subsidies next year, generating a one-off saving of 350 million euros. The decision will help fund concessions to opposition parties, including social security protections and household purchasing power support. Despite the temporary cut, ministers still plan to make childcare almost entirely free by 2029.

The Dutch cabinet has dropped several controversial social security cuts and postponed others as part of a budget deal aimed at attracting opposition support. The package includes more spending on purchasing power, healthcare and fuel tax relief, but questions remain over how some of the measures will be funded.

The Dutch ruling coalition has finally reached an agreement on the national budget after days of intense negotiations. However, without opposition support, the government still lacks a majority in parliament to pass the proposals. Official details will remain undisclosed until Prinsjesdag.