Contested financialization? New investement funds in the Netherlands

Due to the hybrid nature of the Dutch political economy, a ‘compartmentalized’ mode of financialization is hypothesized, characterized by an intermediate level of NIF penetration and low NIF impact on labour outcomes. These expectations are largely borne out by the evidence. The Netherlands is hospitable to foreign NIFs and is one of the larger European targets for Anglo-American PE funds and HFs. Buy-outs do not negatively affect industrial relations and work relations because labour market regulation and economic citizenship rights are determined at the national and sector level and are non-negotiable at the firm level. Before the 2007 crisis there was a mis-match between the absence of negative effects on labour and hostile public discourse over foreign PE and HFs. This discourse has quietened as large public-to-private buy-outs have disappeared and HF activism has become restricted to smaller firms and more defensive strategies. However, post-crisis, an unwilling government is increasingly forced to clamp down on banks and other financial actors.