Economy

Demand for cheaper second-hand electric cars is increasing sharply in Europe. This is the result of the sharp price increases at the pump caused by the war in the Middle East. Nevertheless, battery life tempers the used-car demand.

US President Donald Trump has issued a 4 July ultimatum to the European Union, threatening to significantly hike import tariffs if a pending trade deal is not finalised by America's 250th anniversary. Following a discussion with European Commission President Ursula von der Leyen, Trump expressed frustration over delays in implementing the agreement reached last summer, which includes the removal of duties on US goods like lobster and industrial products. While the EU maintains that it is in the final stages of negotiations, the President has warned that failure to comply will result in tariffs on European imports, including cars and lorries, immediately soaring to much higher levels.

The AEX index fell further on Friday morning, dropping 0.6 per cent to 1,013.32 points as a fragile ceasefire between the United States and Iran appeared to buckle. This latest decline follows a 1.2 per cent slump on Thursday, marking a sharp retreat for Amsterdam’s blue-chip stocks after they reached a new closing record just two days ago. Market sentiment turned defensive as investors weighed conflicting reports from Washington and Tehran: while the US military confirmed retaliatory strikes and Iran threatened to respond "vigorously and without hesitation," President Donald Trump maintained the truce was still in effect despite Iranian accusations of ceasefire violations in civilian areas.

Economic inequality between Dutch households is increasing, and the tax system may play a role, the CPB says. High earners often pay less tax by using private limited companies, while wealth gaps continue to grow. The agency warns that equal opportunities could come under pressure if the trend persists.

Dutch consumer spending rose in March after earlier declines, driven by higher spending on durable goods and services. Cars, household goods, and healthcare saw growth, while food and hospitality spending fell. CBS warned that consumption conditions weakened again in April.

Mortgage applications fell sharply in April as rising interest rates made buyers more cautious. First‑time buyers and movers applied for fewer loans, while demand shifted towards higher‑priced homes. Analysts say the cooling market may help stabilise house prices after years of rapid increases.

Pension funds have benefitted from rising stock prices recently. While the Iran war was a setback to the financial markets, and therefrom to pension funds, the ceasefire has enabled pension funds to be in a strong position to fulfill their financial obligations.

The Netherlands has declined to join Canada’s new Defence, Security & Resilience Bank, opting instead to focus on a competing initiative alongside the UK and Finland. While the Canadian-led bank is designed to help less wealthy allies rearm, the Dutch Ministry of Finance is prioritising the Multilateral Defence Mechanism (MDM), which focuses on joint procurement for wealthier nations. By choosing this path, the Netherlands joins Germany and France in bypassing the Canadian project to support a European-centric model aimed at pooling resources and helping smaller supply-chain businesses scale up military production.