The employer lobby group in the Netherlands says the business climate in the country is deteriorating with one in five people mulling over leaving the country.

In its annual survey of 1,600 entrepreneurs, the Confederation of Netherlands Industry and Employers (VNO-NCW) found a big drop in confidence in the Netherlands as a business destination.

Around 44 percent of those taking part in the poll said the country is not an attractive place to do business, a rise of 16 percent from the year before. Some 20 percent said they were considering leaving the country and about a quarter say they won't make new investments in 2024.

Among the major concerns cited in the poll was political stability, as coalition talks aimed at forming the next government have stalled. 82 percent of bosses said they were dissatisfied about the current political situation. They also cited regulations, personnel shortages and taxes as factors weighing on them.

The labor market in the Netherlands is extremely tight, with the latest figures this month showing there are 114 job vacancies for every 100 people out of work. 

The country is home to many multinational corporations thanks to its infrastructure and skilled labor force. But last year, a new budget led to the overhaul of the country's tax policy, including a significant rise in tax on banks and a new tax on share buy-backs.

Far-right politician Geert Wilders has promised to reduce taxes and stop migration altogether, which would cause further labor shortages. He's also threatened cuts to the country's generous startup subsidies.

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Entrepreneurs like Naud van der Padt say that would be a big blow to innovation in the Netherlands. He says until now, an emphasis on climate action has fostered an environment where green startups can thrive. His young company Leafy aims to put hydroponic plant panels on the walls of Dutch buildings. 

But he warns the next government's policies could hurt the Netherlands' standing on green innovation. He worries about Wilders' plans to bring down the retirement age.

‌"In the short term it's a good thing, because people get earlier retirement," van der Padt says. "In the long-term it can stagnate our growth and stagnate our position as a leader in the forefront of the sustainability movement. I hope the potential current government has a vision for the long-term."

All of those potential changes depend on the result of coalition talks. 

Wilders has struggled to form a government since his PVV party won the highest number of seats in November's general election. The outcome will have a big impact on how businesses are feeling.

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