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The Dutch government is spending billions to keep ASML in The Netherlands. To circumvent these prohibitions, the money doesn't go directly to ASML but is invest

The Dutch government is spending billions to keep ASML in The Netherlands. To circumvent these prohibitions, the money doesn't go directly to ASML but is invested in better infrastructure, housing and education in the local area. More trains and busses to bring people to the company, better energy grid to power all the ASML offices, more money towards STEM studies of the local universities so they are creating the new ASML workforce, building extra homes so the company can hire more people. Plus tax cuts for the employees of ASML, which is fully legal under EU legislation and prohibitions.

pchristensen 2y ago
This seems like a pretty fair way to do it - the government invests in being a place worth staying in, rather than just subsidizing or lining the profits of the target business. If ASML left, it might blow up the economic model of tax + investment, but the constructed infrastructure and social assets would remain.
actionfromafar 2y ago
It is kind of funny in way. :-) "Oh no, education and better infrastructure such as mass transit and a power grid, the horror!"
- systemtest 2y ago
  Not complaining! It's wonderful that we are finally getting investments in a better environment. And ASML provides a big boost to the economy as well. But a bus line that goes from the train station directly to one company, together with housing that will be filled with the expats from ASML is obviously an (indirect) company subsidy.
throwaway2037 2y ago
> Plus tax cuts for the employees of ASML I had to research this claim. It looks true for some. <<This allows certain workers recruited abroad to keep 30 percent of their income without paying tax on it for a period of five years as compensation for relocating.>> Ref: https://nltimes.nl/2024/03/25/cabinet-close-eu14-billion-plan-keep-asml-nxp-eindhoven-end-30-ruling-cuts https://nltimes.nl/2024/03/25/cabinet-close-eu14-billion-pla...
- sensanaty 2y ago
  The 30% ruling isn't specific to ASML, it's a general tax credit you get if you're a non-EU national that moves to the Netherlands (plus a bunch of other conditions) on a sponsored work visa. https://business.gov.nl/running-your-business/staff/terms-of-employment/the-30-ruling-for-your-foreign-employees-in-the-netherlands/ https://business.gov.nl/running-your-business/staff/terms-of... Whether ASML and their employees get extra benefits on top of the 30% ruling I'm not sure, I wouldn't be surprised if they do though.

pchristensen 2y ago

This seems like a pretty fair way to do it - the government invests in being a place worth staying in, rather than just subsidizing or lining the profits of the target business. If ASML left, it might blow up the economic model of tax + investment, but the constructed infrastructure and social assets would remain.

actionfromafar 2y ago

It is kind of funny in way. :-) "Oh no, education and better infrastructure such as mass transit and a power grid, the horror!"

systemtest 2y ago
Not complaining! It's wonderful that we are finally getting investments in a better environment. And ASML provides a big boost to the economy as well. But a bus line that goes from the train station directly to one company, together with housing that will be filled with the expats from ASML is obviously an (indirect) company subsidy.

throwaway2037 2y ago

> Plus tax cuts for the employees of ASML I had to research this claim. It looks true for some. <<This allows certain workers recruited abroad to keep 30 percent of their income without paying tax on it for a period of five years as compensation for relocating.>> Ref: https://nltimes.nl/2024/03/25/cabinet-close-eu14-billion-plan-keep-asml-nxp-eindhoven-end-30-ruling-cuts https://nltimes.nl/2024/03/25/cabinet-close-eu14-billion-pla...

sensanaty 2y ago
The 30% ruling isn't specific to ASML, it's a general tax credit you get if you're a non-EU national that moves to the Netherlands (plus a bunch of other conditions) on a sponsored work visa. https://business.gov.nl/running-your-business/staff/terms-of-employment/the-30-ruling-for-your-foreign-employees-in-the-netherlands/ https://business.gov.nl/running-your-business/staff/terms-of... Whether ASML and their employees get extra benefits on top of the 30% ruling I'm not sure, I wouldn't be surprised if they do though.