The International Correspondent Issue #4 by Floris Muller

#4 DECEMBER 2011 - FEBRUARY 2012 ¤ 5,99

Let’s talk TAX

6 TAX ADVISORS ON THE FISCAL RULES FOR INTERNATIONALS

Travel EXLUSIVE DASHING THROUGH THE GALAXY XMAS 2012 WILL LAUNCH RICHARD BRANSON’S COMMERCIAL SPACE FLIGHTS SCHIPHOL AIRPORT A CITY ON ITS OWN

51 35 WHICH SCHOOL? INTERNATIONAL SHOOLING IN THE NETHERLANDS

ROARING ROTTERDAM HARBOUR WITH A UNIQUE MANAGEMENT

www.theinternationalcorrespondent.nl

8 717973 661238

GOLDEN EXPORTERS WHICH DUTCH BUSINESS MEN MADE THE MOST IN EXPORT IN 2011?

WHICH BUSINESS CLASS? WE PROVIDE A GUIDE TO CHOOSING ACCORDING TO YOUR NEEDS

Engineered for men who reinvent the world piece by piece.

Portuguese Perpetual Calendar, Reference IW502306, in 18 ct red gold with dark brown alligator strap

s if life weren’t complicated enough already, our watchmakers develop mechanical complications that continue to break down barriers of what is technically feasible. It is a fascination with the perfectly smooth intermeshing of wheels, levers and springs that inspires our designers to achieve what lies way beyond the ordinary. IWC Schaffhausen has the capacity to develop and produce individual masterpieces of haute horlogerie such as the perpetual calendar, minute repeater and moon phase display from start to finish. This is the reason for its position as a leading international brand in the luxury watch segment. The Portuguese models are a far cry from the illustrious age in which Portuguese seafarers with their outstanding nautical expertise and groundbreaking technical inventions, discovered new continents and oceans. Ever since the 1930s, when two Portuguese watch importers ordered wristwatches from IWC with the same precision as a deck watch, watchmaking achievement of the highest order has been part of the Portuguese watch family’s DNA.

One of the most intricate and admired complications of them all is the precise representation of the lunar period of 29 days, 12 hours, 44 minutes and 3 seconds. The moon phase display on the Portuguese Perpetual Calendar Reference 5023 depicts

both the current state of the moon and its mirror image, thus showing how it appears in both the northern and southern hemispheres. In 577.5 years, the display diverges from the actual state of the moon by just one day. And that is an impressive achievement

w w w. i wc .c o m

for a symbol on the dial that is around 700 million times smaller than the real thing. The countdown scale shows the number of days remaining before the next full moon. Another example of IWC’s mastery of movement in miniature is provided by the perpetual calendar, which is mechanically programmed until the year 2499 and has displays for the seconds, minutes and hours, the day, date, month and the year in four digits. The balance completes over 12.5 billion oscillations before the century display moves just once. The century slide transforms the change from one century to the next into a minor event in its own right. For IWC, time is more than mere figures: time is a rhythm. Like the beating of our hearts. Like a waxing and waning moon. Like the barely perceptible movement of the century slide. IWC watches transform the abstract notion of time into a sensory experience. And as complicated as our watches may be, the secret of their success is quite simple: they are among the best mechanical timepieces in the world. IWC. Engineered for men.

landrover.nl/

RANGE ROVER EVOQUE THE POWER OF PRESENCE

Fuel consumption combined min./max.: 5,0-8,7 l/100 km, resp. 20-11,5 km/l, CO 2 -emission resp. 129-199 g/km.

Contents the INTERNATIONAL CORRESPONDENT 8

CHOOSING YOUR BUSINESS CLASS SEAT

can be bewildering. Do you want the best wines in the world? Or the seat that gives the best massage? We provide a guide to the offerings available from Schiphol.

46 WILL CHINA OR WON’T CHINA

save the euro? Our international expert Dr Sanjay Sharma offers an incisive explanation of the concerns felt by the cash-rich giant of the east as it confronts the problem of empty pockets amongst its western customers.

22 INTERNATIONAL SCHOOLS ARE MORE DIVERSE

say Dutch parents, who are increasingly opting for educational practice that will equip their kids for international careers. Read why in our feature on this subject.

51 GOLF IN ZEELAND

can be a super challenge with all that water and wind. Here’s a guide to courses available.

81 SCHIPHOL

The city where the lights never go out.

Dutch Style

HANS UBBINK Designing fashion in the time of the crisis

News

INTRODUCING: MIRJAM VAN DE BROEKE Editor in chief of The Netherlands’ top business magazine

What,When, Where

EUROSONIC NOORDERSLAG The largest European showcase festival

Chef ’s Table

HAVE A WILD CHRISTMAS, says chef Schilo van Coevorden

Politics

EURO CRISIS ‘Trust the financial system’ say two Dutch economists SILLY QUESTIONS SIR RICHARD BRANSON A FINANCIAL’S VIEW TOP 10 BUSINESS TYCOONS DUTCH ART FENNA FERWERDA

17 25 40 72 92 98

Contents the INTERNATIONAL CORRESPONDENT 9

Who runs the Rotterdam harbour robots? It looks like a science fiction image, this massive collection of giant robots shifting tons of cargo to and from thousands of ships in the harbour. It requires complex management. “As the main entry point for goods in Europe, Rotterdam is an attractive location for international firms. They create employment, not only directly but also for suppliers and financial and administrative service-providers.”, says Major Ahmed Aboutaleb.

Expat taxation Secretary of State for Taxation, Frans Weekers has relaxed tough new restrictions on the 30% ruling tax break for expats. The minimum salary to qualify for the tax break will now be Ð35,000 – or Ð50,000 including the ruling. The International Correspondent spoke to six advisers specialised in tax for internationals.

Yes Sir! “With everything I’ve done, I had the idea I could do it better than the rest. I started Virgin Atlantic with one plane. Now it’s an adult business with a complete fleet. I have the same plans for commercial space travel.”, The International Correspondent sat down with Virgin Galactic topman Sir Richard Branson and two other space bobo’s in an exclusive interview about the development commercial space flight.

35 64 25

www.greve.nl

Stapel op Greve

locatie: schoenenfabriek Greve Waalwijk 2010

Editorial

Colophon

PHOTOGRAPHY PASCAL BIER

the INTERNATIONAL CORRESPONDENT 11

LIKE A VIRGIN: BUSINESS IN THE TIME OF THE CRISIS Richard Branson’s rise to stardom as a pioneer of business is well known. Above all, he used to say, business must be fun. If you, as an entrepreneur, are enjoying what you’re doing, your employees will catch that spirit and so will your customers. And profits will follow. We, at the International Correspondent, have hitched our own wagon to that star. We have immense fun making this magazine and hope our readers enjoy it to the same extent. We’re looking forward to some profit someday. But Branson has now changed his tune. His bestselling autobiography was called ‘Screw it, let’s do it’. A couple of weeks ago, he published an update: ‘Screw business as usual’. Entrepreneurs mustn’t only create fun, he says, but must do good in the world, take responsibility in this time of crisis. We believe he’s right. Power brings responsibility. Globalisation has sucked power away from governments. The current economic soap-opera illustrates that. Governments are running scared of the financial markets that have demonstrated their power to intervene in politics in Greece and Rome. Civilisation once spread north from those regions. Will breakdown follow the same pattern? In this mess, the business community has to take up the responsibility to restore order, or be consumed by disorder. The most farsighted of them are already doing so. Warren Buffet has led the call for the wealthy in the west to contribute more to government revenues. Hans Wijers, CEO of one of The Netherlands’ largest multinationals, Akzo Nobel, has called on the Dutch government to address the drain on the treasury that is created

by our mortgage relief system. We need to be creative. Branson’s latest venture, Virgin Gallactic, points the way. It aims to put many people into space, creating a cleaner, more sustainable and efficient form of long-distance travel. We give his ideas our space in this issue of the International Correspondent, which is devoted to the theme Travel. It’s a big step for mankind that Branson is proposing. But big steps are necessary now. Standard & Poor’s is threatening to down-grade blue-chip countries in Europe if governments don’t act decisively to deal with the financial crisis. The Netherlands is one of those blue chip countries. We have assets enough, as our Rotterdam harbour story demonstrates. Despite the crisis, Rotterdam is transhipping more goods today than it did last year. Groningen has huge supplies of natural gas still. Our universities have achieved prominence in international ratings by taking a leap of faith no other country in Europe did and switching to English as a language of instruction. They’re attracting foreign students by the thousands. Our school system is in the top 10 internationally, despite what the education minister says. We have the basis for a modern knowledgebased economy if we manage these assets right. There’s no reason for us to withdraw behind the dykes, as our business leaders point out in their rare letter to the government. We’ve made our bed in the big wide world, with our harbour, our European hub of an airport, our reputation as an open, forward thinking nation. This country has, in the past, gone boldly where no-one went before. Screw it, let’s do it again. With best wishes for a Merry Christmas & a Prosperous New Year, Floris Müller Publisher

THE INTERNATIONAL CORRESPONDENT Dutch Business in Global Perspective www.theinternationalcorrespondent.nl EDITION December 2011 – February 2012 Edition 4 PUBLISHER & EDITOR Floris Müller floris.muller@theinternationalcorrespondent.nl ADJUNCT EDITOR Niala Maharaj niala.maharaj@theinternationalcorrespondent.nl CONTRIBUTORS Thomas Dieben, Fenna Ferwerda, Martin van Geest, Jeroen Jansen, Joost van Kleef, David Lemereis, Matt Luna, Mark Maathuis, Paul Rodenburg, Sanjay Sharma,Pete Thomas, Marco de Vries SPECIAL INTEREST CONTRIBUTORS Wouter ter Keurs,Paul Oom, Matthijs van Unen, Joanne Wienen DESIGN AND ART DIRECTION Pascal Bier PHOTOGRAPHY Maarten Bezem, Pascal Bier, Arno de Jong (assistant), Donald van Opzeeland VIDEO Jos Mitsunaga SPECIAL THANKS TO Rafael Anton (clothing), Wendy van Bavel, Alvie Bhailal, Peter Paul Blommers (advisor) Jeroen van Evert, Ramon Groen, George Heidweiller, Ronald Heister, Marjolein Hof, ISTA The Hague, Leonoor Korevaar, Olof Lakmaker, Ranga Rajan, Dennis Roelofsen Sebastiaan Rorije, Emiel de Sevren Jacquet, Marjan Tiller, Andrew van der Ven, Sabine Woelfel WEB DEVELOPMENT Pascal Bier SALES & MARKETING Gideon Krebs Gideon.krebs@correspondentmedia.nl ACCOUNTANT IUS Statutory Audits MAIN PRINTING Westdeutsche Verlagsund Druckerei GmbH DISTRIBUTION COORDINATOR Reinout van der Meer DISTRIBUTION Van Gelderen/ Van Gelderen Inflight The International Correspondent is the business magazine for the international community in The Netherlands. It offers quality reports on finance and economics as well as expositions of Dutch politics, education, innovation and lifestyle. It also provides independent advice on living in, working in, and enjoying The Netherlands. The International Correspondent appears every two months and is published in collaboration with partners in business, government and the education sector. It is also distributed by AKO and Bruna bookshops and magazine stores in the Randstad and surrounding cities. The International Correspondent is not dependent on the government and receives no funding or other assistance from official sources. The editors try to ensure the correctness of all information in this magazine. However, mistakes and omissions are, regrettably, possible. No rights may therefore be derived from the material published. We are perfectly willing to publish corrections in the following issue, if they are brought to our attention. For questions or information, please contact the publisher. All rights reserved. Nothing in this edition may be multiplied, stored in an automated database, or made public, in any form or by any means, whether electronic, mechanical, by photocopying, recording or otherwise, without prior written permission of the publisher. For more information about the partnership programme of The International Correspondent, contact partnerships@ correspondentmedia.nl The International Correspondent is published by Correspondent Media CORRESPONDENT MEDIA info@correspondentmedia.nl www.correspondentmedia.nl Postbus 75526 1070 AM Amsterdam The Netherlands Chamber of Commerce Nr. 34394092 Vat. No.:148998203B01 Rabobank Amsterdam 12.58.16.030

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the INTERNATIONAL CORRESPONDENT 15

In short

¤ 10 BILLION EXTRA CUTBACKS FOR 2012 Minister Jan Kees de Jager sees rising chance of extra budget cuts. The Dutch Central Bank cuts it’s growth forecasts for the Netherlands for the next few years and says it enters our recession in the 2nd half of 2011. photo: WFA/Bart Maat

In short 16 the INTERNATIONAL CORRESPONDENT

WHISTLING A HAPPY TUNE

YOUNG, GIFTED AND GREY: OBAMA MEETS DUTCH PM The two tall, handsome, eloquent men seemed exhausted by the financial crisis at the start of December. Facing the cameras at the Oval Office fireside, they looked like rabbits caught in the headlights of an approaching Mac truck. ‘We have no stronger ally than The Netherlands,’ Obama said. ‘They are one of our most important trading partners. We are one of the largest investors in the Netherlands. The Netherlands, in turn, is one of the largest investors in the United States.’ ‘625,000 Americans are at work today,’ Rutte echoed, ‘because of our direct investment in the US. The total investment of the US in the Netherlands is more than the U.S. investment in Brazil, Russia, India and China combined.’ But all that hunky-dory-ness is threatened by the crisis. Obama asked: what are you going to do about it, Mark? Rutte delved into his goody bag of platitudes again. ‘It’s the intention of my government to keep the euro zone intact, to keep the euro intact, to fight the debt crisis, and at the same time, get growth and job growth going again in the European Union...’ Yeah, right. He knew full well these things depend on the will of Germany, France and his own home-grown eurosceptic, Geert Wilders. YOUNG, GIFTED AND FOREIGN: MPS ATTACK UNIVERSITIES Back in Den Haag, parliament was singing a different song. Foreign students are occupying too much housing, complained MP Eric Lucassen in November. Junior education minister, Halbe Zijlstra, said universities and colleges should avoid giving lectures in English. Both remarks were at odds with the government’s policy of internationalising

PHOTOGRAPHY: REUTERS/KEVIN LAMARQUE

With two quarters of negative economic growth and plummeting consumer confidence, the spectre of recession is looming in The Netherlands. The housing market is in free-fall, unemployment is rising, and 500 restaurants, cafes and hotels have gone bankrupt. The response from politicians and the media so far has been like the old song: ‘Whenever I feel afraid, I hold my head erect, and whistle a happy tune, so no-one will suspect...’

the universities and cashing in on the gigantic fees foreign students pay. The Faustian pact the government made to get support from Geert Wilders’ ultra-nationalist party (PVV) has been claiming its dead. Or brain-dead. Confused by the need to cater to the PVV’s whims, as well to as justify cuts in government spending, law-givers have been competing to deliver an agenda of inanity. Education minister Marja van Bijsterveldt is currently in the lead. She wrote to the Volkskrant newspaper to call on parents to help out at their children’s schools, even if they have to work less to do so. She herself hired nannies so she could pursue her political career, she admits. But the PVV is giving the minister a run for her money. It brought a motion to Parliament to decree that kids must address teachers as ‘sir’. They’re not showing enough respect. Funny, everyone thought being disrespectful was a PVV core value. YOUNG, GIFTED AND CONFUSED: RULING COALITION The PVV is bringing The Netherlands into international disrepute, senior officials and government notables are complaining. The party has said the Turkish prime minister, due here for a visit, is not welcome. It wants Greenpeace kicked out of the country. The Netherlands is becoming a confused and inward-looking country, frightened of foreigners without any reason, eight foreign ambassadors in The Hague said to the NRC Handelsblad newspaper. The PVV is poised either to jump or get pushed out of the ruling coalition. It’s developing a weapon for a lone-wolf attack on the euro. It has hired a British anti-euro think-tank to study the effects of reverting to the Dutch guilder. In the meantime, it’s using scattershot to attack anything that smacks of internationalism.

In short the INTERNATIONAL CORRESPONDENT 17

THE MONARCHY IN THE TIME OF THE CRISIS

PHOTOGRAPHY: NOVUM

SILLYQUESTIONS

The government is slashing expenditure. Except when it comes to the hundreds of millions spent on the royal family, whose value is dubious. News agency NOS carried out a public opinion survey in October. A growing section of the public thinks the monarchy should tighten its belt too, and the Queen should give up political influence.

QUEEN BEATRIX DOESN’T PLAY ANY PART IN POLITICS... Yes she does. The queen is official head of the government. She’s chair of the Council of State. She attaches her signature to every law that passes through parliament and appoints the ‘formateurs’ who sets up new governments. To prevent errors on her part, there’s a system of ‘royal immunity’. The premier takes responsibility for her actions. ISN’T MONARCHY A BIT OLD HAT? The Dutch are thought to be ‘anti-authoritarian’ but 75% of them are attached to ‘their’ queen. People claim that the queen can represent politically neutrality in political discussions. A lot of businessmen think she negotiates on behalf of the country during royal visits. The chair of the employers’ association, Bernard Wientjes, has said, ‘We can’t do without her. Beatrix brings billions in for our industries.’ HOW? Professor Harry van Dalen of Tilburg University tried to work out the figures in 2003. The queen costs hundreds of millions per year, but is estimated to bring in five billion. But that’s just an estimate. It could be much less. WHAT’S CAUSED THIS RECENT OUTBREAK OF MONARCHY REASSESSMENT? Not what. Who. Geert Wilders. (Leader, monarch and sole member of the PVV, the Freedom Party that doesn’t allow freedom or democracy in its ranks –ed.) Apparently, after the 2010 elections, Beatrix delayed the creation of a government that included his party. He was not amused. And now, with the impending appointment of the vice-chair of the Council of State. Beatrix wants the Christian Democrat Piet Donner or even the leader of the social democrats, Job Cohen. That’s Wilders’ arch-enemy,

so he calls the choice arbitrary and (ahem) undemocratic. It’s a royal battle, so to speak. OH. WILDERS. IT DOESN’T TAKE MUCH TO ANNOY HIM. Well, more and more Dutch people also think the queen shouldn’t have any power in a democracy. Plus, the royal family is a drain on state finances, claiming millions in allowances while they are rolling in loot. Quote magazine estimates their holdings at nearly a billion. TRADITION COSTS. Tradition? This monarchy is just 200 years old. It only dates back to 1815. Before that, The Netherlands functioned very well for centuries without them. The Dutch Republic was the oldest in the world. And there’s always been mutterings about the cost and power of the Orange family. But nothing changed since 1848. Partly because nobody has access to the facts about their finances. Beatrix and her propaganda machine, the RVD (the National Information Service) keep all info under wraps. The RVD has even negotiated a ‘code of conduct’ with journalists to restrict photographing of the Royals to official photo-opportunities. THEY JUST NEED TO BE MORE OPEN THEN... They don’t think so. There’s been a lot of criticism about their behaviour in recent decades. Crown Prince Willem Alexander invested in a shady real-estate project in Africa. His father in law was an official of the Videla regime in Argentina in the 1970s (that was responsible for vast human rights abuses –ed). And then there’s the legend of the Queen’s German father, a member of the SS during the nazi era. He’s accused of collecting millions in graft money, trying to get his wife declared unfit so he could assume the throne himself , and fathering illegitimate children with various women.

In short

PHOTOGRAPHY: REUTERS STRINGER

18 the INTERNATIONAL CORRESPONDENT

STOP FIDDLING WHILE ROME BOOTS OUT BERLOSCONI! Now that non-functioning politicians in southern Europe have been removed, the crisis is spreading north. Dutch businessmen are calling on governments to stop bickering and take action. BUSINESS LEADERS: SAY NO TO PROTECTIONISM AND NATIONALISM Dutch business leaders got together for the first time in 57 years to write a joint letter to European governments at the beginning of December. Frans van Houten (CEO Philips), Paul Polman (CEO Unilever), Fijke Sijbesma (CEO DSM), Peter Voser (CEO Shell) and Hans Wijers (CEO Akzo Nobel) published an open letter in the Financieel Dagblad saying, ‘It’s one minute to midnight’. ‘The euro and the internal European market represents three quarters of our exports,’ they wrote. ‘Both are essential to the competitiveness of the Dutch economy and our long term prosperity. ‘The Netherlands has traditionally been an open and internationally orientated country with a healthy economy... We need decisive action to handle the euro crisis and we need it now. We should focus on measures that will make our country more competitive and strengthen the European position in the world market. We shouldn’t retreat behind the dykes, on the contrary, the only way out of this crisis is to look over the borders... ‘As the representatives of five large companies we urge the European leaders to be courageous and act decisively. We need measures which will restore short term financial and monetary stability and measures which will create competitiveness and growth mid term. One thing is certain: we must not go down the road of protectionism or nationalism. It will not make our country a better or more prosperous place to live, rather the opposite.’ CRISIS ZAPS RABOBANK’S AAA RATING The eurocrisis has cost Rabobank its cherished triple-A rating. Rabo was the only bank in the world with this rating. S&P has now downgraded it to AA. Moody’s gives it Aaa but with a negative outlook, and Fitch rates it AA+. ‘We knew this was coming,’ Chief Financial Officer, Bert

Bruggink, said to broadcaster NOS. ‘We knew S&P was working on a new methodology for more than a year. We expected it was inevitable banks would lose the triple A status. We are still a creditworthy bank. Double A is the new triple A.’ S&P’s new ratings method puts more emphasis on the health of the banking industry in the countries where the banks operate and the implicit support they get. Countries have said they are less likely to bail out banks in the future. ‘S&P did not say it literally, but they communicated that a bank can no longer have a triple-A rating,’ Bruggink told Dutch TV program RTL Z.‘ It is clear the conditions in the eurozone are bad,’ he said. ‘The pressure is rising and the effects on the real economy will increase. Nothing is risk free. Even the best countries prove not to be risk free.’ EURO BREAK-UP WOULD WIPE OFF 12% IN VALUE –ING BANK A collapse of the euro would wipe 12 percent off Europe’s gross domestic product in the following two years, states a new report by ING Bank. ING’s economists have produced one of the first financial models of what might happen if the single currency falls apart. In a bleak assessment, entitled “quantifying the unthinkable”, they warn that in the first year alone, output would fall between 5% and 9% across various member states, while their new national currencies would fall by 50%. The euro could slump to $0.85, says the report. Spain and Portugal will suffer near double-digit inflation, Germany and other core countries deflationary shock, which will also infect the US and UK and drag the world economy into full blown recession. ‘The initial trauma outlined in this report is sufficiently grave to give pause for thought to those who blithely propose EMU exit as a policy option,’ stated Mark Cliffe, ING’s global head of financial markets research.

In short the INTERNATIONAL CORRESPONDENT 19

PHOTOGRAPHY: GRONINGEN TOURISME

LOCALBUSINESS

GRONINGEN ‘Nothing is above Groningen’ is the motto of The Netherland’s most northern municipality. With the increasing importance of the gas deposits that lie under 900 square kilometres here, it’s no exaggeration. No marble palaces in the village of Slochteren. Not a golf course in sight. The inhabitants of this hamlet near Groningen don’t even possess luxury sleighs, far less private yachts. Yet they’re like Arab oil sheiks. They earn their living from extracting the sort of stuff that comes out of the ground in Dubai and Abu Dhabi. Some 14 billion euros worth of it in 2011, a quarter of what was traded in Europe, according to Minister of Economic Affairs, Maxime Verhagen. The Netherlands runs on Groningen gas. Despite its massive contribution to the national economy, Groningen keeps its distance from the rest of The Netherlands. It is at a bit of a distance, literally, and is accustomed maintaining its independence from centres of power. But to make assurance doubly sure, in the 13th century, Groningen’s founders built a monster wall round the city. To keep out interference from Brussels’ administrators and later the new power elite in Holland, as well as emissaries from Utrecht’s bishops. Headstrong leaders in Groningen allied themselves then with the powerful German trading network of Hanzesteden. Later, gentleman farmers in the town developed into administrators of the surrounding region. With the development of sugar as a crop in these areas, they garnered income to spend on impressive farms and villas. Today, Groningen remains a northern bulwark of independence. It mainly attracts students with its isolated location and lively nightlife. The Rijksuniversiteit Groningen has 50,000 students (out of a total population of 190,000 in the Groningen municipality). In recent years, these include an increasing propor-

tion of internationals, many of whom remain after graduation to work in Groningen’s blooming small-scale ICT-sector and life science concerns. SUGAR, CIGARETTES AND GAS Despite the shrinkage of the sugar industry in Groningen, it’s still referred to as the sugar-city of Europe. Up to recently, this business was dominated by two players, CSM and Suikerunie, who together produced half a billion tons per year. Tobacco processor, Theodorus Niemeyer, is also a name to reckon with up north. The ‘royal’ cigarette maker is one of the largest in The Netherlands and houses production facilities for scores of European cigar and cigarette makers. It was taken over 20 years ago by British American Tobacco. Gas remains one of the most important sectors, though profits are under pressure. In the last four decades, nearly two-thirds of reserves have been used up. Groningen now has a mere billion cubic metres under its feet. Pipeline firm Gasunie and trader Gasterra are investing heavily in transport facilities. Gasunie controls nearly a quarter of all pipelines in Europe, a network of 12,000 kilometres stretching into Norway, Russia, England and Eastern Europe. It’s also involved in developing the first LNGimport terminal in Rotterdam harbour. Once the gas is used up, The Netherlands must become a ‘roundabout around which the global gas business turns’, said Minister Verhagen in November. Of course, Groningen will play an independent part in those developments.

In short 20 the INTERNATIONAL CORRESPONDENT

PHOTOGRAPHY: QUOTE MAGAZINE/ HEARST PUBLISHERS

INTRODUCING

MIRJAM VAN DE BROEKE

Holland’s most prominent business glossy, Quote, has a new editor in chief. Mirjam van den Broeke is the first woman at the helm since the magazine started 25 years ago. Van den Broeke isn’t worried about holding her own in the male dominated business world. And she doesn’t have doubts about the editorial line of her publication, which has flourished with stories about luxury and money. Though she does admit that, in crisis times, Quote should focus now and again on other things apart from filthy lucre.

Quote’s world is glitter and glamour. Success. Money. Under editor and social star Jort Kelder, ‘old money’ style was shown off in its pages. But since November, the magazine has a new leader. Journalist Mirjam van de Broeke has propelled herself to the top in this male-dominated world – from ‘‘backpage girl’ to editor-in-chief. The business world could take a leaf from Quote’s book, Van de Broeke thinks. ‘Women are less ego-driven and more inclined to consider the interests of the group,’ she says. ‘That has advantages.’ More women at the top would do Dutch business good. She herself almost didn’t enter this world. Her studies were done at the famous Rotterdam Dance Academy and she was asked to go further in that direction. ‘But I didn’t see myself turning into a grey office worker,’ she says. She preferred to work at Quote, where she attracted attention with her reports and portraits of entrepreneurs. ‘I spend days polishing a story till it gleams,’ she says. But as editor in chief, her ambitions are wider. ‘The magazine must go into more depth and publish investigative pieces.’ She calls that ‘slow journalism’. Because of the rise of social media, Dutch journalism has become harder and more superficial, she says. ‘Everybody can publish their opinion online,’ she notes. ‘To get attention, your opinion has to be harder, faster, more shocking. There is little room for depth.’ The Rich-list Recently, Quote published its famous rich-list, the Quote 500. It was a remarkable one. Despite the crisis, most of the

wealthy in The Netherlands have become richer. ‘A couple of people have fallen off the list’ says Van de Broeke. ‘But most are doing even better than before. You can make money if you have money.’ The parsimoniousness of the rich in Holland is also responsible, she thinks.

“A COUPLE OF PEOPLE HAVE FALLEN OFF THE LIST.” ‘The Netherlands is known for thrift and industriousness. Dutch entrepreneurs are alert and don’t shift far from their centre. A deal has to fit on a beer mat.’ Quote doesn’t suffer from the current distaste for wealth and power in the world. ‘The reader has to decide for himself if he admires the wealthy or is revolted by them,’ says Van den Broeke. She will also publish a book this year, entitled ‘What does the woman want?’ Together with Femmetje de Wind she has already published ‘What does the man want?’ Both are meant to be self-help publications based on her hilarious columns as Quote’s back page girl. ‘I want readers to get advice, but also to laugh.’

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Column The Big Issue

the INTERNATIONAL CORRESPONDENT 22

PHOTOGRAPHY: REUTERS/JOHN KOLESIDIS

CHINA: LENDER OF LAST RESORT IN THE EURO ZONE? By Sanjay Sharma

A stable and strong Euro zone is everybody’s profound wish and hope, not least that of China, who is significantly dependent on the European market for its exports. But what is unfolding in the Euro zone can easily scare away even the most courageous investors. This is why China who is, in fact, desperately looking for venues to invest its vast foreign reserves before they lose their value, is reluctant to commit. China who is, in fact, desperately looking for venues to invest its vast foreign reserves before they lose their value, is reluctant to commit. Let’s examine the nervousness of China Investment Corp., one of the world’s largest sovereign wealth funds, and China’s State Administration for Foreign Exchange (Safe) which is responsible for $3.2 trillion in FOREX reserves. At the height of Greece’s debt problem, while the rest of the world was losing sleep,

Euro policy leaders were on their summer break. On their return they found Greece already breathing its last in the intensive care unit. Then came the moment of truth, when both France and Germany had to openly acknowledge the possibility of ‘letting Greece go’. Exhausted by their exertions, they went on a cappuccino break, and returned to find Italy, the 8th largest economy in the world, downgraded from its triple A rating. Its bond yields soon rose above 7%, making its prospects even bleaker and putting Italy in the danger zone. Finally, S&P’s mistaken downgrading brought France into the limelight, since French banks are among the biggest holders of Italy’s Ð2 trillion public debt. Interestingly, French budgets have never been balanced within the past 3 decades, which makes it hard for investors to believe in its austerity measures. Such was the intensity and magnitude of these events that even the European Central Bank, which people believed to be the lender of last resort, took no time to clarify and reiterate to governments and markets that its sole task was to keep prices stable, and that European financial stability did not quite fall under its defined responsibilities – hinting at its unease and mistrust of its own decision to buy government bonds, even if temporarily. This sent an innocent yet negative message to other prudent investors who, by then, had learned not to buy bonds even ECB didn’t believe in. Needless to say, China, too, was observing these developments.

As regards China’s situation, it is suffering from what can be described as captive creditor syndrome, having lent around $2 trillion to the USA and a sizeable chunk of its remaining $1.2 trillion to European governments, with uncertain prospects of either getting it all back or somehow ensuring its real value. It is like an anaconda that can neither swallow a deer, vomit it out, or move until it settles down on its own. China would hate to see its hard-earned hard cash evaporate due for no mistake of its own; hence it is keen to explore employing a double-pronged approach, i.e. safeguarding the value of its reserves and striking a deal in the region that would ensure long-term strategic gains. In the wake of the de-facto crash of Italy, and gloom in the periphery economies, while others may still be busy connecting dots from Greece to Spain to Italy to France, China is carefully weighing how long Germany will survive the bad weather in the Euro zone, which has been virtually pushed to the threshold of a long deep recession if not depression. True, the German economy is hailed for its resilience, thanks to its Grundlig und Pünktlich approach along with global business competence, but so were the USA, UK, and Japanese economies, until markets tumbled. China’s willingness to commit in the prevailing volatility will depend not on the austerity measures pronounced, but on compromises made in economic governance and coordination between the ECB and governments.

DR. SANJAY SHARMA, former director of Maastricht University India Institute and professor of international relations and Korean affairs, is a strategy advisor on global business and economy.

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24 the INTERNATIONAL CORRESPONDENT

SPACE TRAVEL TO REPLACE LONG DISTANCE FLIGHTS By Floris M端ller Pascal Bier

PHOTOGRAPHY:

the INTERNATIONAL CORRESPONDENT 25

Q&A

Sir Richard Branson plans to celebrate Christmas 2012 with his two children in outer space. They will be dashing through the galaxy on Virgin Galacticâ&#x20AC;&#x2122;s first commercial space flight. After that ordinary people can breach the final frontier. Branson, who boldly went where no man had gone before with Virgin Atlantic, Virgin Trains and Virgin music, was in The Netherlands in November, He met with his sales agent, Ronald Heister, chair of the space travel organisation ISTA, and Sergei Zhukov, former cosmonaut and head of the Russian commercial space programme. And with The International Correspondent.

Q&A 26 the INTERNATIONAL CORRESPONDENT

WHAT’S THE PURPOSE OF YOUR MEETING? Ronald Heister: Mainly to increase cooperation and share expertise. Meetings like these are the start of the development of commercial space travel. The 20th century was the century of air travel; the next hundred years must be that of our industry. WHY DO SUCH MEETINGS TAKE PLACE IN THE NETHERLANDS? Sergei Zhukov: There’s a lot of experience here, although there’s less money. And this country is known for its flexible business climate. The Dutch manage to bring diverse parties together despite national and cultural difference. Heister: The European space centre Estec is based in The Netherlands, so a lot of space businesses have been set up here. Sir Richard Branson: I’ve been coming here for years. People are very open and liberal here, more than elsewhere in the world. We can hope this doesn’t change because of the crisis. COMMERCIAL SPACE TRAVEL SOUNDS LIKE SOMETHING FOR THE FUTURE. Heister: No way. In a year, the first commercial space flight will take place. My daughter, my

son and I are going to be on it. Virgin Galactic has its own space ship and launching pad. We are now testing that everything is ready for our first flight next Christmas. WHO ARE THE SPACE TRAVELLERS? Branson: My kids and myself, to start with. We’ve sold 500 tickets for the flights that will follow. Virgin Galactic will put more people in space in its first year than the Russians and Americans in the 60 years before that.

“AIR TRAVEL WILL BE FOR SHORT DISTANCES. SPACE FOR QUICK LONGDISTANCE TRAVEL.” HOW MUCH ARE THEY PAYING? Branson: About 200,000 dollars. After that I expect the price to fall drastically, hopefully to a level where it will be possible for hundreds of thousands of people to make a space flight. We won’t be able to get the price down as low as

we want right away, but probably low enough so people can choose between a long flight to another continent or a couple hours in space. SO IT WILL BE A MILLIONAIRE’S HOBBY FOR THE TIME BEING? Branson: For the time being. It’s costly to launch this project. The first transatlantic flights were also expensive. You need finance to develop the industry and after that to get prices down. Heister: But the costs are lower that what governments spend to put people into space. We’re doing well. PEOPLE SEE YOU, RICHARD BRANSON, AS AN EXTRAVAGANT ADVENTURER. THAT IMAGE WON’T PREVENT THE ORDINARY JOE FROM GETTING INVOLVED IN SPACE TRAVEL? Branson: I don’t think so. Heister: You need front-runners to create a new industry. Like Richard Branson here. WHAT ABOUT SAFETY? Heister: That’s a crucial issue. If there’s an accident at this early stage, that’s the end of the industry. Happily, Virgin Galactic has a lot of experience.

the INTERNATIONAL CORRESPONDENT 27

THE ELITE MUST HAVE A SENSE OF THE LOCAL CULTURE AND HISTORY. YOU CAN ONLY DEVELOP AN ECONOMY IF YOU HAVE MADE NATIONAL VALUES YOUR OWN

YOU SEE A FUTURE FOR SPACE TRAVEL AS A FORM OF TRANSPORT. IS IT TO REPLACE COMMERCIAL FLYING? Heister: No. I think there’s a role for both. Air travel will be for short distances. Space for quick long-distance travel. It’s both faster and more sustainable. Commercial spacecraft use bio-fuel. It will use a lot less than an intercontinental flight. After 90 seconds, the shuttle will be out of the earth’s gravitational pull and you don’t need any more energy. HOW ARE YOU GOING TO GET PUBLIC ACCEPTANCE OF SPACE TRAVEL? Branson: Virgin Galactic has been in space three times. We have the technology necessary. We are a real space travel business. Once people see is in space in a year’s time, they’ll be convinced a new era has begun, and that space travel would be nice to experience. WHY ARE YOU SO ATTRACTED TO TRAVELLING IN SPACE? Branson: I’m drawn by the unknown. I’ve always wanted to do it. I used to think NASA and the Russians would offer space travel to ordinary people at some point. Turned out to be a vain hope. So individuals have to make space travel accessible.

HOW COME YOU THINK YOU CAN MAKE THIS A COMMERCIAL SUCCESS? Branson: With everything I’ve done, I had the idea I could do it better than the rest. I started Virgin Atlantic with one plane. Now it’s an adult business with a complete fleet. I have the same plans for commercial space travel. IN THE PAST, YOU GOT INVOLVED IN EXISTING MARKETS. NOW YOU’RE INVESTING IN A WHILE NEW INDUSTRY. Branson: Virgin’s main aim is to shift boundaries. We are planning to do that literally with commercial space travel. WHAT’S MOST IMPORTANT IN DEVELOPING THE SPACE TRAVEL PART OF YOUR BUSINESS? Branson: People. That’s the most important element in a business. The hardest decision I ever had was letting people go in 2001. After the WTC disaster Virgin Atlantic lost nearly 200 million. We had to cut costs. But after a year, we could rehire most of the employees. YOU THINK YOU CAN DO IT BETTER. BETTER THAN WHO? Branson: Than the Russians and Americans in

the 1960s, 70s and 80s. During the Cold War, a lot of money was invested in space technology, mainly for military and strategic reasons. They never looked at space travel as an alternative method of transport. Heister: Egos and conflict only delay developments. And they spent far more money than necessary. With commercial space travel, we have to earn back every dollar we invest. That’s a big difference.

“VIRGIN’S MAIN AIM IS TO SHIFT BOUNDARIES.” MR HEISTER, YOU ARE THE CHAIR OF ISTA. WHAT DOES THAT ORGANISATION DO? Heister: Isa promotes the structured development of commercial space travel. It addresses the industry and governments, but also consumers. We have 50 members in 40 countries at present. We are lobbying for international legal provisions for the industry. At the moment, it’s only possible to launch space-flights from the US. That has to change. We are also important in attracting new partners and investors.

Q&A 28 the INTERNATIONAL CORRESPONDENT

ISN’T IT A BAD TIME TO TRY AND GET INVESTORS FOR SOMETHING NEW LIKE THIS? Heister: We’re in a relatively good position. We don’t have to look for money. Investors are coming to us. We’ve recently set up co-operation with Global Assistance Allowance, one of the world’s largest insurers. They see a lot of growth opportunity for this industry. Zhukov: I think it’s the time to expand borders. Space travel offers new perspectives, and a new industry. That’s the basis for further recovery. You can compare it with the Dutch

explorers who set off in the heat of the 80year war in the 16th century. Discovering new territories created the possibilities for economic development and power for years. Space travel will create new experience and knowledge. YOU’RE REGISTERED AS A COSMONAUT SINCE 2003. WOULDN’T YOU PREFER TO GO INTO SPACE THAN TALK ABOUT SPACE AT MEETINGS? Zhukov: In the long term I’ll achieve more for the entire industry this way.

IF SPACE TRAVEL IS ACCESSIBLE TO THE ORDINARY JOE, WON’T ASTRONAUTS AND COSMONAUTS LOSE THEIR MYSTIQUE? Zhukov: The title ‘astronaut’ doesn’t really mean anything much to me. Our experience has opened the door for ordinary people. But they won’t travel further than 300 kilometres in space. We will always remain the pioneers. SO NO PACKAGE TOURS TO THE MOON OR MARS, THEN? Zhukov: That’s not commercially viable.

PHOTOGRAPHY: SPACE XC

SEE THE VIDEO OF THE INTERVIEW WITH SIR RICHARD BRANSON, RONALD HEISTER AND SERGEI ZHUKOV ONLINE ON WWW.THEINTERNATIONALCORRESPONDENT.COM AND FOLLOW US ON TWITTER TO LEARN ABOUT THE INTERNATIONAL CORRESPONDENT’S VISIT TO A ROCKET LAUNCH IN KAZACHSTAN HTTP://TWITTER.COM/TICMAGAZINE

IT’S LITERALLY ROCKET SCIENCE

MICHIEL MOL, THE FIRST DUTCH ENTREPRENEUR IN THE SPACE BUSINESS An ideal competitor. That’s how Dutch businessman, Michiel Mol, describes Richard Branson. Mol made his money from internet companies: Lost Boys, Flogs and Media Republic. Now he’s focusing on developing his own space travel business, SXC. ‘Branson has put space travel on the map,’ he says. ‘He created the market. We’re profiting from that.’ SXC wants to launch its first shuttle from Curacao in 2014, and Mol has already sold 40 tickets for flights in the first six months. ‘We’ll

sell more once our shuttle is ready,’ he says. The price of a ticket is 95,000 dollars. Less than half of what Branson charges. The difference is caused by differences in launch methods between the two companies. ‘Our rockets are re-usable,’ he says. ‘That affects the costs.’ Mol also wants to develop smaller shuttles where a passenger can travel next to the pilot. Mol’s customers are what he calls, ‘high network individuals, playboys who have everything and see a space-flight as the crown on

their consumption, space fanatics and wealthy oldies.’ He’s not afraid of competition. ‘Research points to 10,000 customers who are interested. Branson and I can’t fulfil that demand.’ And he doesn’t fear being overtaken by copycat businesses either. ‘You don’t just start a space business just like that,’ he says. ‘To become a player in this game, you have to invest a lot in complicated technology. It’s literally rocket science.’

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the INTERNATIONAL CORRESPONDENT 31

Politics Trust the financial system but keep your euro dry By Mark Maathuis

PHOTOGRAPHY: REUTERS/OGNEN TEOFILOVSKI

Politicians should stop panicking, focus on their responsibilities, and let the markets do their job, say two top Dutch economists. Trust the financial systemâ&#x20AC;&#x2122;s checks and balances, they advise, give more fiscal power to Europe and - most importantly - keep Greece inside the euro zone.

Politics 32 the INTERNATIONAL CORRESPONDENT

POLITICS IS NOT THE SOLUTION If anything, the euro crisis was caused by a political one, these commentators claim, but that doesn’t mean politics are the solution. On the contrary. The EU leadership knew of Greece’s weak financial situation long before the euro was introduced. Based on numbers that were known to be fixed, Greece entered the euro, something former Federal Reserve Chairman, Allen Greenspan, recently said ‘never should have been allowed’ and French president Sarkozy called ‘an error.’ And it can all happen again as long as claims are made that the problem is too much market instead of not enough Europe. Boonstra and de Vries know what they are talking about. De Vries is also member of the EMU Monitor group which provides information on European macroeconomics and Boonstra was responsible for all preparations at Rabobank for the arrival of the euro. When it comes to the handling of the Greek crisis, neither spares the EU leadership. According to Boonstra, too much time was spent, which cost billions of euros. They should’ve tackled this problem before it

spread,’ he says. ‘If we had written off those Greek debts last year, we wouldn’t have had this problem now. Too little happened, too late.’ Instead of endlessly discussing money that politicians know is gone, De Vries says, they should focus on the only issue that matters now. ‘How can we revive the Greek economy?’ GREECE’S ORIGINAL SIN To make that Million Dollar Question even harder, today’s European leaders should recognize what their predecessors knew when they invited Greece to their party: being is debt is a Greek national hobby. Ever since the late 19th century, when the country had to pay war reparations and loans to other European nations, debt has been a compass in Greek politics. ‘In a way, it’s Greece’s original sin,’ states the economist Stavros Thomadakis. The Greeks brought this national flaw to the table when applying for EU membership. Worse, when the EU was created in 1991, its overjoyed leadership forgot to adopt a bailout policy to tackle budget deficit issues. Even worse: every year since 1997, EU budget reports showed that Greece revised its deficit figures. In 2001, Greece could only join the euro after misreporting its deficit ceiling. Next to turning a blind eye on Greece’s application form, European leaders overlooked the devastating effects its membership had on the country. With a single market and uniform currency, devaluation wasn`t an option to combat rising prices. It also made borrowing easy, exchange-rate risks disappeared and stronger economies proved to be more than willing to stretch their lending criteria. Combined with having the lowest exports-to-GDP ratio in the euro area, Greece got flooded with cheap goods – causing a production decline of 16 percent since 2005. NO EUROPEAN COUNTRY AT G-20 Yet it’s no reason to kick Greece out of the euro zone, Boonstra says. ‘Anything they could do wrong, Greek politicians did. But right now, we should talk about growth. If we can grow, we will be able to turn everything around.’ De Vries agrees that sticking together is the best option. ‘It`s for our own good. If we throw out Greece, who is going to be next? And what will it lead to? Devaluation, overall income will go down and then what? Instead, we must open markets in the affected areas and make them stick to the rules.’ Critical for Europe’s future is whether Brussels will get the supranational instruments to deal with fiscal policies of individual members, de Vries says. ‘For too long, too much trust has been placed in politics and the Stability Pact. Now look where we are.’ People should be prepared that no financial crisis can be solved or avoided by political agreements without curtailing the underlying system, Boonstra says. ‘Whatever you agree upon, people will break their word. Instead of trying to prevent situa-

tions like these, which we know we can’t, let’s develop a blueprint to deal with them, so we can stop staggering from one crisis to another.’ Recent announcements by Dutch politicians to have the reintroduction of the guilder investigated are not just headed in the wrong direction, according to De Vries. ‘Why stop there?’ he laughs. ‘We could go back to the florin. Of course it can be done. We will have chaos first, but look at Argentina. They did well after their 1999-2000 crisis. But if they are serious, prepare in silence.’ Apart from ‘a big, fat recession’ Boonstra foresees an even bigger threat if the euro fails. ‘Twenty years from now, no European country will be invited to the G-20. From a macro-economic viewpoint, we have to weigh short term misery versus long term geopolitical influence.’

PHOTOGRAPHY: REUTERS/YVES HERMAN

The last things politicians should do is use this crisis for political gain or to curtail the economy, say Rabobank’s chief economist, Wim Boonstra, and monetary economics professor, Casper de Vries. Withstanding that temptation might be hard for potential ‘neuro’ zone leadership. Greece’s mistakes are many and offensive, giving plenty ammunition to populist sentiments. But if any elected official in Europe cares anything about his constituents, de Vries and Boonstra say, he should work to keep the unity and settle the debt instead of calling for revenge or the guilder. For those in support of more government involvement to stabilise financial markets, Boonstra gladly points to North Korea, ‘the only country which never experienced a financial crisis’. He’s a strong supporter of a laissez-faire economic approach. ‘We had a guided economy in the Netherlands in the early `80s,’ he notes. ‘Things were worse than today.’ Claims by politicians that the financial crisis has hit the Netherlands ‘as hard as Ireland’ or that ‘the large financial sector is a liability’ he calls ‘exaggerated’ and reveal ‘a short memory span’. According to De Vries, crises like these are part of the system. ‘Just think about the tulip crisis,’ he says, referring to the economic bubble caused by skyrocketing tulip bulbs prices in the 17th century. ‘Our genes haven’t changed.’ By emphasising debts, De Vries says, ‘it`s easy to forget those other things that caused this crisis. Parliaments are filled with fear. One of the first things suggested to restore order was to have the markets closed down. But with an independent fiscal policy, markets can correct themselves.’

German Chancellor Angela Merkel at the Euro top on december 9.

Column Politics

A QUESTION OF PRINCIPLE

PHOTOGRAPHY: WFA/ BART MAAT

the INTERNATIONAL CORRESPONDENT 33

By Floris Müller

The deal reached by Europe’s leaders in early December in Brussels almost put the skids under prime minister Mark Rutte’s cabinet. Almost. The PvdA opposition party threatened to bring down the government but it pulled its punches at the last moment. The social democrats are convinced that Rutte and his right-wing allies are breaking their election promises by giving more power to Europe. Even so, the opposition still doesn’t think that Europe’s ‘weak-kneed deal’ justifies pulling the plug on the ruling coalition. Opposition leader Job Cohen wasn’t mincing his words on Thursday 8 December. If prime minister Rutte resigned more sovereignty to Brussels at the summit, he would withdraw his support for the government line, depriving the government of its parliamentary majority on this important issue. “If there is a genuine transfer of sovereignty, I think you should give the voters a

voice and for me that means elections”, was Cohen’s position on the eve of the European meeting. This was no empty threat from a politician whose poll rating is on the slide. The European crisis has brought down national politicians before. The Greek prime minister George Papandreou was pushed out in late November to open up the way for billions in support for his country. The curtains finally fell on Italy’s Teflon leader, Silvio Berlusconi, soon after. In Slovakia, a vote on the European emergency fund EFSF in October led to a rift in the government. Slovakian social democrats said they were in favor but they voted down the motion anyway to bring down the government. But on Saturday, just a few days after the European leaders had gone home from Brussels, the PvdA’s second-in-command, Ronald Plasterk, surprised the country by not calling for new elections. He claimed that the agreement in place was ‘too vague’ to justify the ultimate sanction. PVV Plasterk - and Cohen - have no illusions at all that the new treaty will undermine national sovereignty in favor of Brussels. And that’s not something they really oppose. But support for the prime minister’s European policies is a sensitive area. Populist Geert Wilder’s PVV party gives vital support to the government from the opposition benches, and it’s a strong critic of Europe. Coalition partner CDA has its doubts but is lining up behind the prime minister for the time being. Rutte needs the support of the opposition social democrats. Europe isn’t particularly popular

in The Netherlands anyway. According to surveys, there is a strong majority opposed to giving more power to Brussels. They have never voted for the euro. Or for European policies in Brussels. And certainly not for the leaders who, in the pan-national centre of European government, have made such a shambles in recent years. According to the majority of Dutch voters. And it shouldn’t be forgotten that, in early December, the Dutch found out that they need to make cutbacks of another 10 billion because of the rising burden of European debt. On top of almost Ð 18 billion in cuts announced by the government previously. Finance Minister Jan Kees de Jager (CDA) has already announced that a new round of cuts will not spare political ‘holy cows’, meaning electorally sensitive areas. NEW ELECTIONS Given the billion-euro cutbacks, it’s impossible to deny that the PvdA’s threat of elections makes sense. The new round of cuts means that politicians should be talking to the people about where the ax should fall. And if the politicians do go to the country, the tax kickbacks for mortgages - the country’s number-one ‘holy cow’ - will be top of the list. Cohen and Plasterk’s PvdA thinks those kickbacks should be gradually run down. A view that’s shared by their arch-rivals in the PVV. But Rutte (VVD) and coalition party CDA are firmly opposed to reform. Even so, appearances suggest that Europe won’t fall victim to new elections. Despite the voters’ reluctance and politicians’ unease about Brussels, actual support for Europe seems inevitable.

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the INTERNATIONAL CORRESPONDENT 35

Business COMPANIES NOW CONTROL ROTTERDAM HARBOUR By Matt Luna

PHOTOGRAPHY: ROTTERDAM INVESTMENT AGENCY

Running the largest harbour in Europe is a complex affair, with a lot of money at stake. Companies have to be sure their goods reach their destination speedily. That was once possible due to the legendary power of a handful of ‘harbour barons’. But today, with Rotterdam’s growth in economic importance, its management has been streamlined to fulfil the demands of modern trade.

Business 36 the INTERNATIONAL CORRESPONDENT

WITHIN THIS ALLIANCE OF PORT ENTERPRISES, THERE HAVE BEEN SOME WORRIES THAT THE PORT WILL RUN OUT OF EFFECTIVE USABLE SPACE BEFORE 2014 In 1283, a fishing village was settled on reclaimed land at the mouth of the Rotte River in the south of The Netherlands. In 1858, during the Industrial Revolution, Pieter Caland created a new waterway there. The result is Rotterdam, the largest port in Europe today, 40 kilometres long with an area of 10,500 hectares. Visually, Rotterdam is futuristic. Robotic arms move over 400 metric tons of cargo annually from nearly 140,000 inland and sea-going vessels, guided by computers through high-tech storage facilities with immense air conditioned fuel containers that can fit a commercial airplane. Port-side refinery operations by companies like Exxon-Mobil and Shell compliment and anchor the vast transport and logistics operations. The modern Rotterdam harbor is highly mechanised. But its success depends on human beings. To be precise, on the initiatives of Rotterdam’s entrepreneurs, the so-called 19th century harbor barons. These were industrialists like Daniel George van Beuningen (founder of the Steenkolen trade association, SHV, currently an investment fund), Philipus van Ommeren (Vopak), Willen Ruys (NedLLoyd) and Anthony Veder and Antony Kröller (Internatio- Muller, Imtech) who gave the city allure since the new waterway was founded in 1858. These harbor barons created employment in

the docks and built schools, hospitals and museus in the city. Their position has been taken over now by large international companies and local organizations. POWER IN THE PORT The Port Authority headquarters, with its 1,200 employees led by CEO Hans Smits, is perched above the harbour and resembles the command bridge of a ship. It functions as a type of ‘landlord’, responsible for infrastructure, accessibility and optimum use of resources by resident companies. Smits has to coordinate with vested powers: two thirds national government, one third city voice and a board of private commissioners. Larissa van der Lugt, a port economist with Erasmus University says Smits, the ‘landlord’ of the world’s fourth largest port – after two in China and one in Singapore – ‘came in at a difficult time (in 2005) has been accepted around the port and has done a fine job so far giving a strategic boost to its position’. But it’s the private companies – often international – that run much of the actual business of the port. In some cases, there can be problems, with this direction and power being fragmented between companies that have varied interests. Deltalinqs is an organisation that attempts to

focus this power, and acts as a spokesperson for companies in the Rotterdam industrial area. Its purpose is ‘to promote the collective interests of the affiliated companies and organisations’. Its board is comprised of management officials from major companies like Shell, European Container Terminals (ECT), E.ON Benelux, Broekman and Vopak. This group of harbour superpowers seeks collective agreement (power) on strengthening Rotterdam’s competitive position, sustainable development and garnering governmental and public support for its members. OPPORTUNITIES AND CONCERNS Within this alliance of port enterprises, there have been some worries that the port will run out of effective usable space before 2014. These launched the Maasvlakte 2 expansion project that began construction in 2008, and is scheduled to be in operation by 2013. The Port Authority stresses these concerns on its Web site: ‘’If the port fails to grow, there is a good chance that shipping companies will pass Rotterdam by in the future”. This reclamation project will increase the port’s operational size by 20 percent, and allow even better deep sea access, as it will provide 24 hour, 24 meter-deep docking capability for the world’s largest transport vessels.

the INTERNATIONAL CORRESPONDENT 37

THE ROTTERDAM INVESTMENT AGENCY is attracting international companies to Rotterdam to help ensure that at least the local economy continues to grow. The agency attracts foreign companies, helps make their arrival successful and assists with a range of services to help the companies remain in the city. The agency will show why Rotterdam is a good location for the potential new business, help choose the best location in the city and provide specific

THE EXPAT DESK information on setting up in the area. The Agency continues its support through its current investor development program with visits to the leading companies in Rotterdam and surveys of their needs and concerns. It makes sure the company is connected with local networks, provides assistance with lawyers, and helps negotiate problems with government administration and relations.

is a part of the Rotterdam Investment Agency that helps highly skilled migrants successfully settle into the Dutch system. It expedites immigration procedures and other activities, such as setting up a local bank account, that can be overwhelming and time-consuming for new arrivals. The organization has been rated highly in its first two years of service. It also helps professors and medical researchers coming to Rotterdam.

Business the INTERNATIONAL CORRESPONDENT 38

And, not to miss an opportunity, the Port Authority is sponsoring an international study for installing a large wind farm on the sea wall of Maasvlakte 2. If this becomes a reality, the proposed 100 MW wind farm would be a substantial step towards the port’s 2020 goal of producing 300 MW (enough for 350,000 households.) Ms. van der Lugt said that Maasvlakte 2 will provide sufficient capacity for the port to operate effectively and remain competitive on a global level, especially with uncertainties over future growth in volume. “There’s no shortage (of infrastructure) foreseen in the coming years; the question will be for overcapacity if the economy is not strong enough to sup-

port operations.” A report released by the Port Authority from last August stated that in the first half of this year, there was ‘light growth’ of one per cent from the first half of 2010 in the total amount of cargo being handled in the port. It’s a complicated task to successfully navigate all of the power players of port operations under stormy and uncertain economic conditions. The costs in equipment and manpower (jobs) of idle resources on a global port scale could be staggering. As van der Lugt put it, ‘’If the Euro zone crashes, a drop in consumption would of course lead to smaller flow at the port.” But she also acknowledged that “the port must still continue to improve its competitive position.”

ECT is the provider of the robot giants that constantly load and unload vessels in the port. The company is part of a strong and increasingly international presence, as it is a subsidiary of Hutchison Port Holdings based in Hong Kong, where many major company decisions must be approved. ROYAL VOPAK claims over 400 years of service and is the world’s largest provider of conditioned storage for bulk liquids, oil products, chemicals and liquefied natural gas (LNG). Queen Beatrix attended the opening last September of its LNG terminal, the Netherlands’ first and the largest of its kind in the region. APM TERMINALS provides terminal operations and transport services around the world. APM is based in The Hague and is an independent unit of the Danish-based A.P. Moller-Maersk Group. C. STEINWEG HANDELSVEEM provides storage, handling, chartering and related logistics. Initially started in 1847 as a warehousing provider, the company is based in Rotterdam and has recently opened offices in Vietnam and France. THE BROEKMAN GROUP is a port presence in automotive terminals and logistics. The company was founded in 1960, and also offers container trucking and barges for transport of powder in cement operations.

Business the INTERNATIONAL CORRESPONDENT 39

‘ THIS CRISIS DOESN’T FAZE US,’ SAYS ROTTERDAM’S MAYOR By Floris Müller

Despite the raging economic crisis, Europe’s no. 1 port is doing just fine. The city and port administration work together to make Rotterdam a dynamic centre of global trade. Mayor Ahmed Aboutaleb explains how to readers of The International Correspondent

PHOTOGRAPHY: CITY OF ROTTERDAM

WE’VE COVERED OUR BACK AND CAN ABSORB A KNOCK OR TWO “Of course the city’s economy has been affected by the crisis, but things are okay. There’s a lot of employment on offer here, particularly for trained personnel. The container transhipment sector is still showing growth, 12% in the first six months. It’s falling a bit because of the euro turmoil, but investment continues to be high. Companies invest 1.5 to 2 billion euros annually in new and existing business. Recently the harbour was expanded to include an LNG terminal and factories producing bio-fuels. Since industry is so varied here, from high-quality, innovative enterprises to start-ups in the creative sector, we have room to manoeuvre and can absorb a shock or two. This harbour is not only central to Rotterdam’s economy but also to that of The Netherlands and Europe. It employs 145,000 people and produces 3.3% of GNP. Its added value is 22.2 billion euros. Goods from the whole of Europe leave here for foreign destinations and vice versa. As Mayor of the city, I’m also the harbour’s ambassador. I often visit other harbour-towns in China, Brazil, India etc. ” THE CITY AND HARBOUR ARE LIKE SIAMESE TWINS, JOINED TOGETHER AT THE HIP. “A strong harbour needs a strong city with good facilities, one that attracts companies to set up operations there. Meanwhile the harbour drives the city’s economy. The harbour is a knowledge economy in itself. The harbour’s management focuses on commercial interests. The city’s management functions as shareholder and oversees strategic policy. City and harbour work well together, with understanding and respect for each other’s position.

The city has fewer resources than before because national budget cuts have been passed down to us. We just to do more with less money. We have to be smarter and more creative in how we operate. To grow and strengthen our international position, we have to invest in our infrastructure. We always have to keep in mind that we are participating in international networks. All our decisions have to be based on an international, or at least European, approach. In addition, sustainability is a major issue for us. Rotterdam has big ambitions regarding reducing CO2 emissions. The city and harbour are conjoined in efforts to realise this.” INTERNATIONAL BUSINESS HAS ALWAYS BEEN WELCOME HERE “As the main entry point for goods in Europe, Rotterdam is an attractive location for international firms. They create employment, not only directly but also for suppliers and financial and administrative service-providers. They are welcomed by the Rotterdam Investment Agency, where we have people who speak their languages available to guide them. Rotterdam has a long tradition of doing business with the whole world and the whole world can be found in Rotterdam. It’s a wonderful, but challenging, city, full of contradictions. These rise to the surface faster here than elsewhere because Rotterdammers are outspoken folk. That gets rough sometimes. But when things rub up against each other, they polish each other. Rotterdam’s success is based on its forward-looking approach and openness to change. We welcome international business, and have developed a city that is wonderful to live in.”

Column Business

WHO TO BLAME A FINANCIAL’S VIEW ON THE CRISIS By Paul Rodenburg

The founding of Amsterdam’s own branch of the Occupy movement gives me a strange sense of pride. I think the non violent protest against the inequality of the distribution of wealth of the occupy movement is a noble cause. But I believe the ‘occupiers’ are barking up the wrong tree. Not (only) the bankers and big corporates are to blame.

‘Greed is right. Greed works. Greed clarifies, cuts through, and captures the essence of the evolutionary spirit. Greed, in all of its forms greed for life, for money, for love, knowledge - has marked the upward surge of mankind.’ You don’t have to be a banker to recognize this famous movie quote of Gordon Gekko (Michael Douglas) from the 1980’s blockbuster Wall street. Although the movie maybe outdated, this quote surely isn’t. Because of Gordon Gekko, people actually think everybody involved in the financial industry is rich, slick and not bound by any moral awareness. When in fact 90% the people working in the industry would remind you more of the cast of Revenge of the Nerds. In fact all bankers do, is provide services for the market. Financial institutions have not created the current crisis, they have just serviced them. Don’t get me wrong, financial institutions have made huge mistakes and their greediness is at the base of what is elementarily wrong in the current system. But the same counts for individual investors, customers and for example house owners. Maybe your own greediness made you unaware of risks you were taking when investing, or made you buy your house at the top of the market, because you believed you

PHOTOGRAPHY: WFA/ PIET VAN DER MEER

the INTERNATIONAL CORRESPONDENT 40

could flip it in the next couple of years making 15% a year. CDO Who’s to blame then for the mess? One of these complicated products that made the market go bust in 2008 was the infamous CDO (Collateralized debt obligation). Not only banks believed it was important that everybody should own a house – the government propagated it as well. One of the major goals of first the Clinton and later the Bush administration was boosting the rate of home ownership. The CDOs where simply made to meet a demand in the market. In hindsight it is easy to see numerous flaws of the product, but when they were being traded nobody saw them, maybe everybody’s glasses were fogged up with greed?And how about the role of rating agencies in the crisis? In the week before the collapse, Lehman Brothers was rated A by S&P, one of the big 3 rating agencies. Surely a misinterpretation of the agencies. Same counts for the risks rating of CDOs. Yet still the market listens to these agencies, who are far too influential if you ask me. When they downgrade a country or financial institution the consequences are immense. Do not forget these are commercial companies. Such responsibility should be held by institutions like the IMF only.

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42 the INTERNATIONAL CORRESPONDENT

CITY WITHOUT CITIZENS: SCHIPHOL AIRPORT By Wouter ter Keurs, Paul Oom, Matthijs van Unen, Joanne Wienen PHOTOGRAPHY: Donald van Opzeeland

the INTERNATIONAL CORRESPONDENT 43

Feature

With the holidays in sight, expats from all around the world start longing for their home countries. The tickets are booked, the bags are packed and theyâ&#x20AC;&#x2122;re on their way to Schiphol, the city where the lights never go out and business never stops.

Feature 44 the INTERNATIONAL CORRESPONDENT

SCHIPHOL EMPLOYS OVER 60,000 PEOPLE, AS MANY AS IN A SMALL DUTCH CITY

“Don’t worry, be happy,” is Schiphol’s motto, according to Jacques Hoendervangers, director of Commercial Services & Media. To promote it, Schiphol has five hotels, over 75 shops, an international train station, a casino, library and spa to service its 45 million annual passengers who fly to 301 destinations in 99 countries. It employs over 60,000 people, as many as in a small Dutch city. The airport’s facilities are doing fantastic business. The Burger King at Schiphol Plaza is the most profitable Burger King in the world and one Starbucks location is the busiest in Europe. These stats are great for Schiphol, but travellers are less happy. Commercial Manager Jaume Lluch: ‘The food here is expensive and rubbish, like most airports. They’re all the same: if you’ve seen one, you’ve seen all of them.’ DINING LIKE A KING But Schiphol also offers high-end cuisine with restaurants such as ‘De Brasserie’ in Lounge Two and ‘Bubbles’ in Lounge One. “We are one of the few airports that offer these kinds of dining options,’ says Hoendervangers. ‘It’s a risk we took, but we noticed this idea is catching on. That’s the kind of investments that make a difference. It has to be a commercial success but we want to make travellers comfortable too. ” Tristan Rodriguez, a market manager from Lyon, travels via Schiphol about twice a month. He

recognizes the demand for high quality restaurants at airports. “I hope this idea catches on at other airports too.”

“ SCHIPHOL’S MEDITATION ROOM IS AN EXAMPLE OF RELIGIOUS TOLERANCE.” EXCLUSIVE SHOPS, CULTURE AND RELIGION Hoendervangers says travellers have a ‘grocery list’ in mind when they arrive here. In general, they want to buy three things: perfume, alcohol and tobacco, and something to read. The Schiphol Group has placed three stores right at the entrance of the lounge selling those three things. Last September, Schiphol opened Lounge 3, offering exclusive shopping locations. There is a high-end chocolate store, a fashionable Hermés boutique and Europe’s very first Victoria’s Secret. “We want to make Schiphol Europe’s airport of choice,” he says. “When people are hungry they will find a place to eat something no matter what, that’s why the focus at the entrance is on the stores.” For people who want a last chance to catch some Dutch culture, there’s Rijksmuseum Schiphol. This special location opened in 2003 and the collection changes twice a year. Schip

PHOTOGRAPHY WFA/REIN VAN ZANEN

the INTERNATIONAL CORRESPONDENT 45

hol was the first airport to offer a museum. “We don’t gain profit from this, the museum is just another service we offer our travellers.” Schiphol’s meditation room is an example of religious tolerance. Orthodox Jewish men mumble their prayers two meters away from where Islamic men kneel for theirs. The caretaker talks about the place with a smile on his face: ‘This room has been here for thirty years and has always been a place of gathering and brotherhood. Every religion enters this room.’

of business travellers is the enormous size and the long waiting times at this airport. Trevor Newman, a European project manager, is waiting for his flight to London. He travels via Schiphol about twice a year. He likes the Dutch mentality, is very enthusiastic about the logistics and the efficiency at Schiphol, but thinks the airport is too big. “There are too many gate changes and the taxi-ing time is too long. Sometimes it takes up to fifteen minutes.”

ONE TERMINAL Schiphol Airport maintains a one-terminal concept, unlike Heathrow, which has five terminals so passengers often have to go outside to reach their flight. Paul Baker, a British Sales Manager, is a fan: ‘It’s great that this airport is so much more compact and convenient, especially when you compare it to Heathrow. The biggest plus is that you don’t have to take a bus to get around here.’ ‘This concept is very important to us and we want it to stay this way,’ says Geert van der Vast, Corporate Affairs spokesman. The Schiphol Group’s ideas about what an airport should look like are catching on all over the world. In fact, the company designed and owns terminal 4 at New York’s JFK airport. Van der Vast: ‘We used the same model and ideas that we used here in Amsterdam.’ But it means the terminal is huge. A much-heard complaint

“AT THE MOMENT, THE AIRPORT IS THE FIFTH BUSIEST IN EUROPE.” ‘It’s always busy here and I have to wait very long,’ adds Kim Kirkegard, Business Development Manager, from Denmark. ‘Especially for business travellers, this is quite annoying.’ Schiphol has thus introduced a special service called Privium. ‘We developed this concept around ten years ago,’ says Jacques Hoendervangers. ‘This service is made for business travellers to cut time. It’s a safe and quick border crossing via an iris scan. Besides that, we offer these customers parking space near the terminal and a discount on valet parking.’

HOLLAND BOULEVARD The Schiphol Group put a lot of thought into creating Holland Boulevard. In this area, they try to give incoming local passengers a homey feeling. For example, the famous Dutch treat ‘poffertjes’ is available to anyone who wants to try mini-pancakes. When you walk along the boulevard, piano music pulls you to a sitting area that looks like a collection of different living rooms. “We put the piano here a while ago. When people walk around, some start playing spontaneously.” The airport has also launched a Corporate Responsibility Program. Geert van der Varst: ‘In 2012 we will be using much more LED-lights to decrease the use of energy, there will be more electric transport and we will stimulate travellers to travel to and from the airport by public transportation. These developments are based on three dimensions: people, planet and profit.’ Hoendervangers: ‘In the future we like to expand our luxury stores, but also focus on midrange fashion boutiques such as Zara. Our new master plan at the beginning of 2012 will develop that.’ At the moment, the airport is the fifth busiest in Europe. Hoendervangers: ‘Of course we would prefer even more travellers, but that’s not our main goal. We’d rather grow slowly and offer quality, than immediately be the first.’

Different angle

46 the INTERNATIONAL CORRESPONDENT

COFFEE, TEA, ORâ&#x20AC;Ś

CHAMPAGNE AND A MASSAGE IN BED? PHOTOGRAPHY: REUTERS/VIVEK PRAKASH

By Wouter ter Keurs,Paul Oom, Matthijs van Unen, Joanne Wienen

Flying business class is now the next best thing to checking into a luxury spa, as airlines compete to pamper passengers. No matter how obscure your dietary habits or religion, they have a menu for you. The entertainment possibilities are bewildering. The International Correspondent helps you shop around to get the best bang for your particular buck.

the INTERNATIONAL CORRESPONDENT 47

KLM

LUFTHANSA

When a business corporation’s home base is Dubai, the company must know how to spend money. Emirates is one of the fastestgrowing airlines in the world and when you look at what they offer before, during and after your flight, you can imagine why. It has an all-wide-body fleet of 153 airplanes, and this year announced a number of monster orders that include 90 Boeing 777-300ERs and 73 Airbus A380-800 (the largest civil aircraft in the world). Emirates operates over 2,300 flights every week across its network of 103 destinations in 65 countries on six continents from its hub in Dubai. Several new destinations are added every year. The Boeing 777-300ER is currently the only aircraft from Emirates’ big fleet departing from Schiphol. Business class cabins are equipped with 180 degree lie-flat seats that can be reclined up to 2 metres. An in-seat power supply, dual port USB and extra-large table provide a comfortable workspace, while hundreds of entertainment channels are available on a 17 inch widescreen TV. A wide variety of meal options emphasise healthy food. Emirates’ Healthy Meal Options dishes are designed to bring out the food’s natural flavours without adding excessive fat or oils. Every meal - breakfast, lunch and dinner - is served on china, on tray tables laid with fine linen. A complete range of complimentary alcoholic drinks is available on all flights except those to Saudi Arabia.

The Amsterdam-based airline, KLM, offers its customers two kinds of business class: World Business Class and Europe Business Class. Travellers in World Business Class get a 190-cm sleeper seat with massage mode, 175-degree angle lie-flat seat, privacy screen, personal entertainment system and a wide variety of international magazines and newspapers. Every passenger receives a toiletry kit designed by Viktor & Rolf. For dinner, you can expect a three star menu, made by Dutch chefs and served on plates designed by Marcel Wanders. The menu offers international dining, with special Dutch, Italian, Indian or Indonesian specialties. KLM also offers vegetarian, kosher or halal menus on intercontinental flights. Dinners are accompanied by quality wines such as Schorre Rivaner and Salentein Reserve Chardonnay, selected by sommelier Hubrecht Duijker.. And passengers are treated afterwards to a special Delft Blue miniature house filled with the famous Dutch liquor Jenever. With 117 aircraft and 138 destinations, KLM also provides a special Europe Business Class for shorter flights. This offers KLM Crown Lounge access, a 84-cm pitch with more recline, in-seat power ability on all Boeing 737-700s, -800s, -900s, more personal space, priority boarding, extra baggage allowance and 250 percent Flying Blue miles.

From their main hub in Frankfurt, Lufthansa is able to take you pretty much anywhere in the world: 203 destinations in 78 countries across Europe, Africa, Asia and the Americas. Frankfurt Airport has plenty of business lounges for you to enjoy while waiting for your flight. If you decide to step it up and fly First Class you will enjoy the airport’s dedicated First Class Terminal. Two hundred staff there work hard to accommodate only three hundred passengers every day. Once in the air, Lufthansa has more tricks up its sleeve. Business class seats convert into two-metre- long lie-flat beds to make sure you can get a few hours of sleep in. The seats also include laptop power outlets, entertainment facilities, a massage function and storage for glasses that pop up from your armrest. There are preset positions for relaxing, sleeping, working and dining. Lufthansa pays a lot of attention to the food it serves. The airline has partnered with head chefs from luxury hotels to spoil their passengers. German top chef, Douce Steiner, prepares the business class meals for all Lufthansa’s long-haul flights departing from Frankfurt during the holiday season. Steiner is renowned: her own Hirschen Hotel and Restaurant has earned her a Michelin Star and a lot of critical acclaim.

PHOTOGRAPHY: REUTERS/HYUNGWON KANG

EMIRATES

Different angle

48 the INTERNATIONAL CORRESPONDENT

BRITISH AIRWAYS

AIR FRANCE

In 2010, Skytrax (the world’s largest airline review site) named Garuda Indonesia the World’s Most Improved Airline. ‘Very comfortable seats, extremely friendly cabin staff and great food. This is great value for your money!’ Its Executive Class offers flat-bed seats, 74-inch seat pitch and recline up to 180 degrees on the Airbus A330-200 and Airbus A330-300. Passengers get an 11inch LCD touch screen to watch the latest Hollywood blockbuster. A wide variety of music is also available, from Arabic and classical to Indonesian, Chinese, western and so on. Passengers on international flights can enjoy European and Asian cuisine served on china, accompanied by Australian and French wines, champagne and liqueurs in crystal glasses. On flights to and from Japan they also serve Japanese dishes. In July 2011, the airline launched a special dish called Indonesian Rice table. You can choose nasi kuning or regular steamed rice, with, for example, satay, gado-gado or fried shrimps.

Was a Club World customer you have access to over seventy British Airways lounges worldwide. Enjoy the Galleries Club Lounges at Heathrow Terminal 5 where you can experience a treatment at the Elemis Travel Spa while your suit is being pressed. Passengers are welcomed on board with a pre-takeoff champagne aperitif, then it’s time for such delicacies as wild mushroom beef stroganoff and tomato and chickpea tagine. In between, you can help yourself to fresh wraps, salads, hot dishes like Chicken Tikka Masala and sweets at the Club Kitchen.

Air France is an airline you have to keep in mind when flying business class (l’espace affairs). Its Arrival Lounge at Paris-Charles de Gaule offers spacious showers, a de-wrinkling service for your clothes, and a wholesome breakfast. Its seats are equipped with a massage function, reading light, personal telephone and laptop power ports. A dustbag for your shoes and a comfort pack filled with toiletries are waiting for you when you enter the plane. The seat can be converted to a bed that has a length of two metres, but most of the reviews on Skytrax weren’t very positive about sleeping on these ‘beds’ because of the angle they are in. But you don’t have to sleep. A 10.4-inch interactive video screen allows you to watch six recently released movies, play video games and listen to ten music stations. The seats offer a lot of storage space for magazines, books, laptops or iPads. Air France offers a selection of fine wines and champagnes provided by sommelier Olivier Poussier, who was named world’s best sommelier in 2000.

PHOTOGRAPHY: REUTERS/CAREN FIROUZ

GARUDA INDONESIA

the INTERNATIONAL CORRESPONDENT 49

CHINA SOUTHERN

CONTINENTAL

Malaysia Airlines is a great choice for flying to Asia (or any of the other 87 destinations across six continents, for that matter). Their main hub is in Kuala Lumpur, but you will find Malaysia Airlines-specific business lounges in Sydney, Los Angeles and London as well. Even during the longest of long-haul flights, Malaysia will make sure you don’t get bored. First Class and Golden Club (business class) passengers are provided with the Select 3000i Portable Media Player. This is like entertainment systems you have seen before, but portable. With its big touch screen it allows you to watch over a hundred hours worth of movies, television and sports. For people bringing their own entertainment; seats are equipped with power outlets and USB ports. The menu is so extensive that it fits everyone’s needs. There is a Hindu meal, without beef, veal, pork or smoked fish; a Muslim meal, in which only halal meats are used, and a kosher meal for Jews. But that’s not all. There are seven meals to choose from for vegetarians. Whether you are a LactoOvo vegetarian or vegan, Malaysia has a meal for you. There are also seven special meals for people with all sorts of medical conditions. Diabetic, gluten free, or low salt; you name it, they have it. Fried chicken and meatballs are also available.

China Southern is the only Asian airline listed in the world’s top 10 in passenger transport. In 2010, this airline transported more than 76 million customers to a variety of locations in the world. It has been named the Best Business Class Airline in China by TTG China Magazine. China Southern offers long-haul flights to its main hubs, Beijing and Guanzhou, and to other cities in Asia. Its business class seats can be positioned to a 1.88 metre bed at an angle of 180 degrees. They are equipped with 15-inch private video screens where you can choose from a number of western and Chinese movies and eight music channels. Just can’t stop thinking about that task you have to finish? No worries, the seats are prepared for the workaholics among us, with satellite phones and power supplies for laptops or iPads. China Southern offers a variety of Asian dishes and western meals that can be accompanied by fresh fruit, a fresh salad, different cheeses and pastas. If you’re on a special diet, there’s no need for you to worry about feeling hungry. The staff can provide you with almost anything you want. Vegetarian, gluten free, halal, lactose free or even an entire meal of fruit.

Continental offers the most destinations of any of the US airlines. Last year it merged with United to become the largest airline in the world in revenue and passenger miles. The new airline will eventually take on United’s name, but will be using Continental’s logo. Fun fact: This is the only US airline that flies to the Marshall Islands and the Federate States of Micronesia (you never know when you have business to attend to there). If you are at an American airport, there is a big chance you will find United Club lounges, the business class lounges for both Continental and United travellers. These are at 39 major airports ‘around the world’, which means, in American dialect, that most are in the United States. Multiple-course meals are served in flight, with four entrees to choose from. Dessert options range from signature sundaes to fresh fruit and cheeses, while a variety of cocktails, beers, international wines and freshly brewed coffee is also available. Continental is in adding two-metre flat bed seats by the end of the year.

PHOTOGRAPHY: REUTERS/HYUNGWON KANG

MALAYSIA AIRLINES

Fly fast and comfortable to Minsk up to 5 times per week non-stop from Amsterdam

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the Regional Representative Office in Benelux

the INTERNATIONAL CORRESPONDENT 51

Education

THE IMPORTANCE OF INTERNATIONAL EDUCATION By Matt Luna PHOTOGRAPHY: Shared by various schools

In 2010 the Dutch public education system was ranked in the top 10 out of 65 countries by an OECD study that surveyed performance in reading, math and science. Even the royal family sends its kids to public school. Yet increasingly, some Dutch parents are sending their kids to the International Schools in The Netherlands. Some say the public school system often divides students into religion-specific schools, and the schools are too homogenous. The International Schools are, by contrast, full of variety.

Education the INTERNATIONAL CORRESPONDENT 52

It can be difficult for primary and secondary students at international schools to answer the question, “Where are you from?” They may have never lived in the country of their passport. They are studying portable curricula globally recognised when they move abroad. ‘The children don’t always realise what a huge advantage attending an international school is giving them for the future,’ says Tracy Tigchelaar, of The British School in The Netherlands (BSN). This 80 year-old institution, which offers students the choice of the British A level programme or the International Baccalaureate Diploma (IB), has about 2,000 students from 80 different nationalities. The school points out how beneficial it is for this global mix to become normal. ‘We see the nationalities and cultures getting along together, and that’s just the way it is.’ American School of The Hague (ASH) stresses the benefits of an international student and parent population, with about 70 nationalities represented and a focus on teaching ‘international mindedness’. ‘We teach students and indeed they teach us to be understanding and accepting of each other,’ says ASH spokesperson Lesley Murphy. The director of The International School of Amsterdam (ISA), Dr. Edward Greene, says that in his school, ‘there is never an assumed example of what anything means.’ He recalls French and American students debating whether a cheese product from a tube can really be called cheese. English is the universal language of instruction at these institutions, and these students don’t always arrive with English fluency. The BSN says that language is the ‘biggest and most immediate challenge, but we give close support to bring them up as quickly as possible.’ John Light, principal of the British School of Amsterdam (BSA), says that children in this type of environment learn in a natural way through their interactions, and it’s easier for the younger children. A slightly different approach to language instruction is taking place at the European School in Bergen (ESB). Dr. Steve Lewis, director, says that the school, which offers the European Baccalaureate, does not function exactly like an international school in that it integrates different languages into one school, instead of having one central language of instruction for all students. Students can choose core subject studies in English, French or Dutch. A wide range of other European language specific courses are offered as well for students here, many of whom are children of European Commission employees.

WIDE CHOICE OF CURRICULAR AND EXTRACURRICULAR FOCUS Along with a plethora of languages, all of these international schools have a broad range of choices in study subjects and they are heavily concerned about maintaining standards of instruction. The ESB highlights its science program, the ISA mentions their theatre and visual arts, and the BSN says that an extremely broad range of extracurricular activities adds to its strength. ASH notes that its curricular and extra-curricular activities are tailor-made to meet the needs of the student population. But all of the schools offer a well-balanced, varied curriculum and BSA says that it is good to give students broad options ‘so they don’t specialise too early and then realise later that they have chosen the wrong path.’ There is a strong Asian presence in most schools, with students coming from countries like Japan, South Korea and India, but nearly every school says that their students come from all over the world. There are some noticeable trends in University attendance after leaving the schools. The UK is the most common destination for graduating students, and it seems that an increasing number of international students are choosing to continue their studies at universities in the Netherlands.

Arriving at a new school is an uncertain experience by definition, and doing so in a strange new country can multiply the complexities. The ISA says that mobility of students presents a challenge, because the average stay at his school is about four years. ‘Kids that grow up in one place don’t have these challenges,’ but moving and living abroad ‘can benefit in the long run.’ International moves and school changes can be more difficult when it is the first relocation, but the Internet and social media help children maintain some of their friendships. ADAPTATION ASSISTANCE The international schools organise welcoming programs to make the adaptation process more fluid for students and parents. The Safe Harbor program at the ASH supports students, parents and staff as they enter the Netherlands and join this learning community, and also as they leave. New students are paired with a trained student ambassador to help them become familiar with the routine. Similarly, parents are teamed with another parent ‘welcomer’ who helps them find their way in the school and navigate their daily needs in this new environment. BSN, like ASH, stresses the importance of integration of the arriving families: ‘If the parents are happy, their child will be happy, and if the child is happy, the child will learn.’ Through the BSN’s Family Association there is a program for matching new parents with those from similar backgrounds. Help is offered in areas like finding the right doctors and dealing with immigration-related chores, and there are opportunities for parents to become involved in the school community. International families with pre-school aged children have found help navigating areas like early child care with the Blue Umbrella Company. Blue Umbrella is a child care agency dedicated to helping international families feel at home in the Netherlands. The company is an authorised English speaking intermediary with the Dutch Tax Authority (Belastingdienst). It helps working parents find secure and quality childcare and applies on their behalf for the national childcare subsidy provided by the Dutch tax office to help working parents afford their childcare needs. Employees of International Organisations, diplomatic and consular missions can obtain the required documents for domestic or private childcare staff. Blue Umbrella also liaises with the Dutch tax office to obtain BSN numbers (social security numbers) for those exempt from the normal civil registration process. There is a surprisingly large Dutch student pre-

the INTERNATIONAL CORRESPONDENT 53

QUESTION: WHAT ARE THE THREE BEST OR MOST IMPORTANT THINGS ABOUT YOUR SCHOOL? AMERICAN SCHOOL OF THE HAGUE (ASH) AGES 3 – 18, IB DIPLOMA, U.S. HIGH SCHOOL AND GENERAL DIPLOMAS - Each student is supported as an individual, academically and personally - Safe Harbor program unites all elements of the school - Quality of the faculty www.ash.nl

EUROPEAN SCHOOL BERGEN (ESB) AGES 4 – 18, EU BACCALAUREATE DIPLOMA Safe school with a community feel Opportunities for all students at the school Language-rich environment www.esbergen.eu INTERNATIONAL SCHOOL OF AMSTERDAM (ISA) AGES 3 ½ - 18, IB DIPLOMA, Warmth of environment for all students, parents and staff. Quality of faculty Project Zero, a visible thinking concept with strategic approaches to help maximise students’ learning potential. www.isa.nl

BRITISH SCHOOL IN THE NETHERLANDS (BSN) AGES 3 – 18, IB DIPLOMA AND BRITISH A LEVEL CERTIFICATE - Quality and range of language programs - Variety of extracurricular activities - Standard of teaching and learning www.britishschool.nl

BRITISH SCHOOL OF AMSTERDAM (BSA) AGES 3 – 18, BRITISH A LEVEL CERTIFICATE - The way students, staff and parents work together - A philosophy of maintaining dignity and respect for everyone - Teaching students how to interact with each other to carry over to the workplace www.britams.nl

ROTTERDAM INTERNATIONAL SECONDARY SCHOOL (RISS) AGES 11-18, IB DIPLOMA, ICE DIPLOMA, U.S. HIGH SCHOOL DIPLOMA - English additional and mother tongue programs - Friendliness: students are a happy bunch - Range of subjects offered www.wolfert.nl/riss

HOW ABOUT CHILDCARE? BLUE UMBRELLA www.blueumbrella.nl COMPANANNY www.compananny.nl

Education the INTERNATIONAL CORRESPONDENT 54

sence in most of these international schools, usually the second largest nationality group. The majority of these Dutch students have either lived abroad for some time, or they have mixed nationality parents. Maintaining their studies in an international program can prepare them for possible future relocation or assist them in continuing their education further in the Netherlands. The BSA says that the English language and the level of its school structure are assets to international Dutch parents bringing their children here. DUTCH PARENTS ARE IMPRESSED The ASH has noticed an increased enrolment from ‘home grown’ members of the local Dutch population who may not have lived abroad, but are looking for a different type of education for their children. ASH says, ‘a broader range of academic and extracurricular activities’ could be the draw, and English instruction is always important to these families. BSN notes that they are also seeing a shift towards local Dutch students. ‘Our fees go back into the facility and maintain a high standard. Dutch parents are very impressed when they come for a visit.’ Most international schools interviewed said they had felt the effects of the economic crisis, but enrolment was still healthy. The RISS has seen a slight drop in enrolment and the ESB has trimmed budget excess and is carefully managing existing funds. Other schools, like the ISA and BSA, have seen increases during the economic difficulties, and the ISA is looking at continuing to expand based on numbers from the past 20 years. ‘There’s no logic to it,’ ISA says, ‘we have been fortunate and are full.’

IF THE PARENTS ARE HAPPY, THEIR CHILD WILL BE HAPPY, AND IF THE CHILD IS HAPPY, THE CHILD WILL LEARN.

BSN says that the more competitive marketplace has changed the way that international companies in the Netherlands fund education. The school has seen an increase in the tuition being paid for by the parents instead of companies. With multiple sites, BSN is prepared to cope with changes in student numbers and student profiles to ensure that places remain available. ASH says that the school is financially stable and is still growing. PROUDEST MOMENTS Each international school was asked what its proudest moment had been in recent history. The opening of a new junior school campus at Leidschenveen - recently nominated for the British International School of the Year award - was a big moment for the BSN. Environmentally efficient, all buildings achieve the highest score on the GREENCALC scale and also have a range of recycling programmes. The Daycare and adult language centre on the campus are also features of what the school describes as a massive investment project. After the earthquake and tsunami in Japan last March, the ISA said that one family returned to the school saying that their town in Japan had become a refugee centre and was in dire need of supplies: clothes, toiletries, toys etc. The school rapidly came together to collect 2 tons of materials in 24 hours that was transported directly to the needed town. A newly dedicated centre for Early Childhood education right across the road from the main campus is a recent source of pride for ASH. Scheduled to open in 2013, situated in the natural surroundings of the historic farmyard, and

using farm concepts, students will be able to see their daily school life in a way that will help them to become more sustainable and ecologically aware as they grow and learn. The use of solar panels, a grey water system and the garden are some of the simple but effective measures to teach the youngest of children. Having school harmony and a noticeable lack of aggression are important accomplishments at BSA. They say ‘adults must give respect to get it from the kids,’ and the system seems to be working. Watching the students continue to prosper and grow at ESB during uncertain times of the economic crisis, while seeing future optimism over the growth of the Petten nuclear research facility, are big accomplishments at the school that is directly linked to the European Commission research centre. The RISS is quite proud to have a recent double accreditation from the European Council of International Schools and the New England Association of Schools and Colleges. The accreditations were given after inspections of curriculum, facilities, faculty, student support and safety. All these international schools have a glowing optimism for the future. They have plans for increased infrastructure, quality of instruction and continued growth of enrolment. With its location on the rural, but scenic, outskirts of the town of Bergen, improved public transportation links to the school are on the five-year agenda of ESB. Consolidation of school sites to minimise travel for parents and staff is a goal of BSA.

Schools the INTERNATIONAL CORRESPONDENT 55

The BSN - a choice that will last her a lifetime

THE BRITISH SCHOOL IN THE NETHERLANDS Senior School Open Day Wednesday 8 February 2012 13:30 - 16:00 www.britishschool.nl

Schools the INTERNATIONAL CORRESPONDENT 56

independent co-

student well and to create individualised

important part of the curriculum.

(for example History, Geography), balanced

Please call 020 67 97 840 or contact info@britams.nl if you would like a tour of the school and to meet the Headteachers.

website at www.britams.nl

Secondary and Junior School Early Years Anthonie van Dijckstraat 1 Fred. Roeskestraat 94A 1076 ED Amsterdam 1077 ME Amsterdam Infant School Jan van Eijkstraat 21 1077 LG Amsterdam

the INTERNATIONAL CORRESPONDENT 57

Rotterdam International Secondary School

Bentincklaan 294, 3039 KK Rotterdam +31 (0) 10 890 7744, info.riss@wolfert.nl, www.wolfert.nl/riss

ER V O C S I D O T A WORLD Advertentie RISS 20110929.indd 1

Fully accredited secondary school for bilingual havo and vwo

Discover Wolfert Tweetalig With over 750 students, the Wolfert Tweetalig HAVO & VWO is the largest and most prominent bilingual secondary school in the greater Rotterdam area. Our education has a strong international focus where the English language is the key ingredient. Wolfert Tweetalig students can achieve their HAVO and VWO diplomas as well as a certificate for the International Baccalaureate in English. Our pupils not only develop outstanding linguistic qualifications, but they gain a stable foundation to evolve as responsible citizens. The bilingual programme encompasses comprehensive educational practices that encourage a collaborative working atmosphere where skills, training, and project work promote an active and independent attitude toward learning. Our accredited programme has been proven through the excellent national exam results.

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03-10-11 13:49

A way of living! Why bilingual education? Wolfert Tweetalig offers a challenging, internationally oriented programme with a demanding curriculum for the motivated student. We maintain intensive international contact through student travel trips, exchange programmes, and cultural activities. Alongside the basic studies programme, students can expect to follow a broad range of classes such as Global Studies, Art & Design, Art History, Drama and Theory of Knowledge. By the time our students graduate, they will have achieved the fluency level of near native or even native speaker. For more information: www.wolfert.nl/tweetalig, tweetalig@wolfert.nl, +31 (0)10 890 77 66

03-10-2011 09:49:57

Schools the INTERNATIONAL CORRESPONDENT 58

Respect

Responsibility

Integrity

A learner-centered, American curriculum modified for the needs of an international student and parent population. Full college-preparatory programs, including International Baccalaureate Diploma and Certificate, and Advanced Placement courses.

Empathy

Communication

“From day one my kids felt welcomed and special. In the 3 1/2 years we have been here they have grown academically, socially, and are excited about learning.” “As a parent, ASH is the school you dream of your kids attending and not believing it exists till you get here.”

A wide variety of extracurricular activities, including strong visual arts, drama, music, and athletics programs. Graduates accepted at American, European, and home country universities. More than 1,100 students from 70 nationalities (29% American, 12% Dutch with 59% representing 68 other nationalities). Fully accredited by the Council of International Schools and the Middle States Association of Colleges and Schools. Located in Wassenaar, on the north side of The Hague.

3D Impression of Early Childhood Center Development

Educating the WHOLE Child “American School of The Hague nurtures and inspires character, commitment, creativity, and learning.”

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Complete Early Childhood, Elementary, Middle and High School programs for ages 3 to 18.

Childcare the INTERNATIONAL CORRESPONDENT 59

Childcare the INTERNATIONAL CORRESPONDENT 60

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Schools the INTERNATIONAL CORRESPONDENT 61

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We offer a complete range of audit and accountancy-related services to a wide and varied client base. Wherever your head office is located, whether in the UK, the US or elsewhere, it is reassuring to know that the services IUS provides enable businesses of all types and sizes to meet all current Dutch reporting and compliance requirements.

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www.iusaudit.com IUS Statutory Audits Coöperatie U.A. Crown Building South Hullenbergweg 365a, 1101 CP Amsterdam Telefoon: +31 (0)20-7147100 Email info@iusaudit.com IUS Statutory Audits Coöperatie U.A. operates under a licence issued by the Dutch Financial Markets Authority (AFM)

the INTERNATIONAL CORRESPONDENT 63

Personal Finance PHOTOGRAPHY:

Shared by fiscal advisors

65 66 67 Junior finance minister Frans Weekers HAS RELAXED TOUGH NEW RESTRICTIONS ON THE 30% RULING TAX BREAK FOR EXPATS. THE MINIMUM SALARY TO QUALIFY FOR THE TAX BREAK WILL NOW BE 造35,000 OR 造50,000 INCLUDING THE RULING. photo: WFA/Bart Maat

KOPPEL BELASTING ADVIES

TAX CONSULTANTS INTERNATIONAL

JC SUURMOND & ZN BELASTING ADVISEURS

68 69 70

HILLBROOK EXPATRIATE TAX SOLUTIONS

HORATIO ASSURANCE GROUP

DJENT ADMINISTRATIE

Personal Finance 64 the INTERNATIONAL CORRESPONDENT

INTRO CONTROVERSY RAGES OVER THE 30% TAX ADVANTAGE FOR INTERNATIONAL EMPLOYEES

The fine print on Dutch tax regulations is almost unfathomable... and now there’s confusion about the ‘30% ruling’ for international employees. In October, Secretary of State for Taxation, Frans Weekers, announced that the fiscal advantage enjoyed by expats in The Netherlands would be slashed as part of the government’s 18 billion budget cuts. Lobbying began... and Weeker soon started backtracking. The International Correspondent spoke to six advisers specialised in tax for internationals.

THE QUARREL In September’s budget presentation, the prime minister hammered on about developing the Dutch knowledge economy, and how important highly educated foreign employees are to that enterprise. But maybe Secretary of State for Taxation, Frans Weekers, was asleep at that point, because the PM’s words were nowhere reflected in the tax plans he presented. Weekers is concerned about the rise in internationals claiming the 30% ruling, whereby taxable income is reduced by 30% of earned wages. According to Weekers, just under 3,200 employees made use of the ruling in 2002, but that number has gone up ten-fold in the past ten years. And Weekers has at least another 12,000 requests for the taxbreak still waiting to be approved. QUASH THE RULING! The expat tax break has been controversial for years. In 2002, De Telegraaf newspaper screamed about the loss of capital to the State. In 2006, de Volkskrant newspaper noted that in Den Haag

alone nearly 700 million euros were being lost every year. Conservative politicians from Geert Wilders’s PVV and the Socialist Party have been muttering about the pampering of foreigners. LOUSY IDEA! Others say cutting the expat tax break would damage The Netherlands’ attractiveness to international workers and to international companies. The main loss would be experienced by cities striving to create an ‘international atmosphere’ like Rotterdam, Amsterdam, Den Haag and big cities outside the Randstad. Amsterdam’s mayor, Eberhard van der Laan, fears ‘a decline in the Dutch knowledge economy and the carefully-developed investment climate’. In October, he sent a sharply-worded missive to this effect to Secretary of State Weekers that was supported by his colleagues in other parts of the country. And by international companies, schools and the management of various expat-centres who plan to establish a lobby to plead their cause with the politicians.

FOR MORE INFORMATION ON TAX VISIT: WWW.THEINTERNATIONALCORRESPONDENT.NL/TAX

Personal Finance the INTERNATIONAL CORRESPONDENT 65

TAX BROADENING THE LAWS OFFERS POSSIBILITIES TO MORE INTERNATIONALS

KOPPEL BELASTINGADVIES

‘In the new tax law for expats, there’s more of a quantitive requirement for foreign employees than a qualitative one,’ says Nico Koppel, director and coowner of the fiscal advice bureau Koppel Belastingadvies in Amsterdam. ‘More attention is being paid to the level of salary involved than the specific expertise required.’

Koppel argues that the change to the expat provision proposed by secretary of state Frans Weekers was illogical. ‘The government has invested a lot to attract foreign companies in the form of subsidies and fiscal stimuli like tax deductions and lower rates for innovative companies. Weekers’ proposal is in stark contrast: it makes The Netherlands less attractive to international employees, who are just as needed for the Dutch economy as international companies.’ According to Koppel, the reduction of the income threshold from 70,000 euros gross per year to 50,000 is favourable to many internationals working here. ‘High salaries don’t apply in every sector,’ he says. ‘Physiotherapists, teachers, dentists and creative sector employees now qualify for the tax deduction.’ He points particularly at new graduates who consider moving to The Netherlands. ‘The 30%-ruling is a motivation for a lot of young people with a wish to do a PhD.’ EXCEPTIONS The Koppel bureau has 14 staff in Amsterdam, half of whom provide fiscal advice. The others provide accountancy and administrative support to the national and international clientele. Koppel has about 750 clients, mainly individual expats, companies and small businesses. ‘Many of these just want their tax-return filled out, but about 300 others need specific tax planning assistance.’ It’s to be expected, he says. Dutch tax regulations have become complicated because of the highly

FOR MORE INFORMATION VISIT: WWW.KOPPELBELASTINGADVIES.NL

detailed tax laws. ‘All possible exceptions to general rules are considered, which leads to a lot of minor provisions.’ Nico Koppel worked at various large tax companies for ten years before starting his consultancy. ‘In the large companies, I lost contact with individual clients. I prefer to talk with somebody who is responsible for his own finances than with a board of directors in a big company.’ His firm is now ten years old. Koppel himself comes into contact with foreigners via providing services to companies and one-man operations. ‘In the IT-sector, in particular, we saw a lot of internationals. We increasingly assist foreign employees and entrepreneurs in the banking sector and expats working for large multinationals.’ The company aims for intensive contact with HR departments at international companies. ‘We relieve HR staff of their fiscal problems.’ BACKGROUND As adviser, you have to have social insight, says Koppel. ‘A lot of people clam up when it comes to their tax affairs. It’s important to know what the client wants and how he has arranged his affairs. Only then can you offer complete support. We thus invest in a long term relationship.’ This is why Koppel is one of the four people who started the Expat Housing Seminar, a co-operative venture of specialists who provide information for expats who want to buy a home in The Netherlands.

Personal Finance 66 the INTERNATIONAL CORRESPONDENT

TAX THE 30% RULING IS NO LONGER UNDER DISCUSSION NOW THAT THE NEW RULES HAVE BEEN ESTABLISHED TAX CONSULTANTS INTERNATIONAL

According to Rens van Oers of Tax Consultants International (TAXci), the adjustments to the expat provisions, which come into effect on January 1st 2012 mainly aimed at preventing its spurious use. ‘The employee is supposed to have specialist skills which are scarcely available in the Netherlands. But in the past, secretaries and administrative assistants got the benefit of this measure, while the Netherlands is bursting with those skills internally.’ Van Oers says the only people who will be affected by the change will be returning Dutch citizens, employees living in the Dutch border area (e.g. Belgium and Germany) and foreigners with a relatively low income. TAXci should know. Apart from its office in the World Trade Centre in Amsterdam, it maintains another in Rotterdam

(Groothandelsgebouw) , both central to international companies operating here. ‘Dutch citizens who want to apply for the 30% ruling have to have been away from the Netherlands for 25 years. That was 10 years previously. And new employees coming here, including returning Dutch citizens, have to have lived over 150 kilometres away, which includes Belgium, a part of France and most of Germany. He finds the new rules logical when it comes to Dutch citizens. ‘When the Dutch return from abroad, they don’t have the same level of relocation costs that complete foreigners have.’ But the changes in the law also affect foreigners quite a lot. ‘The grant period has been shortened from 10 to 8 years.’ DISCUSSION The confusion over the expat tax ruling has made foreign knowledge workers very nervous, he adds. ‘There’s talk of a higher salary norm and application of the new rules to existing knowledge workers. Some people may lose their entitlement to the 30% ruling if they don’t fulfil the new requirements once they come up for the five year reassessment process, which has been a formality till now. That can have painful consequences for a lot of current and new expats and their employers.’ TAXci was established in 2000 as a tax boutique

FOR MORE INFORMATION VISIT: WWW.TAXCI.NL

specialised in international tax law. Its founders, Ton Smit and Edwin Veele, concentrated mainly on corporate clients and company taxes. ‘But after a while,’ Veele says, ‘international companies also requested us to fill out tax returns for their employees, particularly in relation to applying for the 30% ruling.’ Now, apart from a large group of big and medium sized corporations as clients, TAXci has corporate clients who want services on behalf of their employees as well as 30 to 40 individual expat clients. ‘Our services range from regular tax advice and compliance to wide-ranging support on complicated international tax issues,’ says Veele. ‘As a result, our client files have expanded, especially in the area of expats, and we are expecting them to grow further in the coming years.’ INDEPENDENCE TAXci’s reputation rests on its intense specialisation, says Veele. ‘We have specialists in every area of taxation, and particularly when it comes to corporate taxes.’ They help corporate clients to deal with employment taxes and the obligation to file returns of their employees. ‘From income tax and social security to salary administration is covered.’ But they don’t employ accountants. ‘We maintain our independence. If you give tax advice and also deliver accountancy services, you can end up with a conflict of interest.’

Personal Finance the INTERNATIONAL CORRESPONDENT 67

TAX 30%-RULING: LIMITATIONS BUT ALSO OPPORTUNITIES J.C. SUURMOND & ZN. TAX CONSULTANTS

‘The secretary of state has been curbed by parliament,’ says Hans Suurmond, founder of the consultancy firm J.C. Suurmond & Zn. ‘It is narrowminded to restrict application of the 30% ruling. If you chase away skilled foreign professionals, you’ll eventually lose your foreign companies as well, and damage the Dutch economy.’ The long-standing 30%-tax ruling is meant to compensate employees from abroad with scarce expertise for relocation expenses. It means 30% of the gross salary is not taxed. According to Suurmond, the rules were tightened at the recent first proposal, but after criticism broadened again. The salary norm has been lowered so more expats can take advantage of the provision, though the length of the arrangement has been reduced from 10 to 8 years. Other restrictions for example apply to employees coming from neighbouring countries But the ruling has been

broadened for graduates. If they remain in The Netherlands after completing studies here, and have lived outside The Netherlands before commencement of their study, they may qualify for the 30% ruling. The discussion, however, surrounding the proposed tightening of the 30% ruling is still not over, says Suurmond. Lasting damage has been done by the political debate surrounding it. ‘A lot of expats still have the feeling that the ruling is now insecure.’ He says The Netherlands has dropped from 27th to 34th on the list of most desired places for relocation. PRO-ACTIVE In 1975, Suurmond assumed a position at a smaller tax bureau, as a specialist in cross-border tax issues. When that office was taken over by a larger one, he decided to strike out on his own. ‘Tax consultancy has always fascinated me,’ he says. ‘It’s human affairs. I wanted to go back to personal contact with the client.’ At his own, 25-year-old firm, international employees are of vital importance. Nearly half of his clients are foreign. Apart from preparing tax returns and providing international advice, the office handles a lot of 30% requests. Many of these are complicated cases with the result often not clear beforehand, but J.C. Suurmond & zn. has never

FOR MORE INFORMATION VISIT: WWW.JCSUURMOND.NL

had to accept a refusal, due to his thorough preparation of each request. Suurmond prefers to provide financial advice to individuals as early as possible. ‘It is essential to get advice before salary negotiations begin. We provide tax planning and guidance wherever needed.. In addition we make sure the desired result is actually reached. This includes followup and for example check whether a refund actually reached a clients bank account. Since setting up his office in Poeldijk, just outside The Hague, his firm has attracted a number of companies. ‘A lot of companies regard The Netherlands as a good place to set up an establishment because of its double taxation tax treaties with other countries and other related advantages such as the 30%--ruling’ INDISPENSABLE [bodytext] Suurmond thinks the tax services and individual advice he offers are indispensable to many foreigners. ‘Because Dutch tax law is complicated, internationals often fail to understand not only their tax liabilities but also their entitlements.’ For instance, most foreigners don’t realise that the 30% ruling does not only apply to wages but also worldwide assets such as savings, investments and property and related income from these assets..are tax exempt.

Personal Finance 68 the INTERNATIONAL CORRESPONDENT

TAX THE NEW EXPATRIATE REGIME IN 2012: MORE EMPLOYEES WILL QUALIFY! HILLBROOK EXPATRIATE TAX SOLUTIONS

Henk Amorison, partner of tax boutique firm Hillbrook Expatriate Tax Solutions (‘Hillbrook’), is especially enthusiastic regarding the reduction of the new salary norm under the new expatriate regime (or 30%-Rule) of 2012. Employees coming to NL with specific skills that are scarce on the Dutch labor market can profit from a maximum tax free allowance of 30% of their gross wages. As of 2012, employees who are hired from abroad with a taxable salary of at least 35,000 euros will be deemed to have these specific skills. Initially, a very sober new 30%-Rule was proposed. However the State Secretary listened to the lobby from different industries. Amorison, who was one of the co-authors of the booklet on the 30%-Rule of 2001, has been active in the

lobby and is very positive that at last even more attractive 30%-Rule legislation has been passed. Amorison: if more knowledge workers come to NL and profit from the 30%-Rule, the level of knowledge in NL will go up and the Dutch economy will profit from this as a whole. Good for everyone in the end. 1 DAY As a specialist office on the 30%-Rule, Hillbrook has made an arrangement with the tax authorities that, under certain conditions, they can grant the application of the 30%-Rule decisions to employees on behalf of the tax office. The possible lengthy procedure with the authorities can be avoided and the 30%-Rule can be granted within 1 day. Hillbrook was founded in 1996 by Price Waterhouse tax lawyer, Erik Heslenfeld. Last year his former colleague, Henk Amorison, left Deloitte and joined him. They also hired Ivo Menting, an expatriate payroll specialist who had worked 12 years for Andersen and later Deloitte. Tax advice from the start of doing business in the Netherlands Hillbrook focuses on employers with expatriate employees and on international entrepreneurs who start their own businesses in the Netherlands. ‘It can be important to be involved from the start so that, together with the client, the correct legal entity can be deliberated.’ Hillbrook also assists with bookkeeping, including VAT returns, payroll administration, filing of individual income

FOR MORE INFORMATION VISIT: WWW.HILLBROOK.NL

tax returns and corporate income tax returns. ‘A variety of services and if we cannot provide the expected services, we refer clients to another party that is qualified and can be trusted. ‘ BOUTIQUE FIRM The tax lawyers of Hillbrook are convinced about the advantages of their boutique firm. ‘Of course, we are always at least more than 50% cheaper than the bigger firms. But pricing is not the only important thing. The service level must have top quality and must be quick. But the most important thing, we believe, is that we have a sincere interest and attention for our clients and try to think and act as if we are that client.’ This approach works. This year, 3 multinational companies each with between 100 and 300 expatriate employees asked Hillbrook to prepare their individual income tax returns and/or run their payroll administration and take care of 30%-Rule requests and provide related advice. A matter of trust. ‘At the same time, the individual entrepreneur who needs tax assistance or the single employee who wants us to file a tax return remains always welcome and can also count on a quick, quality service with no fee surprises. We believe that companies and their employees are not only interested in how to save tax or minimize risks. They want a trusted partner that listens to their ideas and assists them in asking the right questions in a tax world that is changing rapidly and remains changing rapidly all the time.’

Personal Finance the INTERNATIONAL CORRESPONDENT 69

TAX THE NETHERLANDS WILL BECOME LESS ATTRACTIVE BECAUSE OF THE CHANGE IN THE TAX LAW HORATIO ASSURANCE GROUP

‘The government is scrutinising all spending and fiscal rules very closely in this time of crisis,’ says Peter van Haeften RA of Horatio Accountants. Secretary of State Frans Weekers submitted proposals in October to change the rules, he says, largely due to emotion, the feeling that expats were getting an unbalanced advantage in The Netherlands. ‘Not all political decisions are based on economic reality. The savings for the tax office don’t outbalance the long term loss in economic growth. Not only would international employees avoid the Netherlands, but so would international companies who consider moving here.’

Accountant van Haeften is forthright about the negative emotions that have emerged in this country recently and that are being spurred on by the crisis. The critical attitudes regarding the tax rules for international employees are mainly based on ignorance, he says. ‘Many Dutch people, and also policy-makers, are not aware of the costs incurred in moving to the Netherlands,’ he says. ‘Internationals have financial obligations in their home countries and have to invest in relocation, housing, transport and travel to work here. To transfer money abroad, for instance, costs 8%. Dutch employees don’t have these extra costs. Luckily Weekers retreated from his stance quickly. Limiting the expat ruling means you’re making The Netherlands less attractive for international employees and for companies.’ CONSULTATION Horatio Accountants supports both national and international companies with cross-border tax advice. ‘It’s fiscally advantageous to base your company in the Netherlands,’ says van Haeften. ‘But the market is too small. Once you expand, you have to consider developments in surrounding countries.’ Horatio has a number of large international concerns as clients. ‘Various Japanese companies, such as a large chemical concern. And one big travel firm, plus a German bank.’ Horatio handles a range of issues related to taxation, including transfer pricing, regulations regar-

FOR MORE INFORMATION VISIT: WWW.ASSURANCE.NL

ding materials costs within the company. ‘You can arrange these so that you make very little profit to show to the tax authorities, but most countries don’t like it,’ says van Haeften. ‘Luckily, in The Netherlands good deals have been made with the tax office about materials costs.’ Horatio also assists companies to handle value-added tax (BTW) issues. There have been a lot of changes in that area, says van Haeften. Fiscal restructuring is another area where they focus. ‘Many fiscal experts arrange things so that you pay as little tax as possible in the short term,’ he says, ‘but short term profit can inhibit longterm growth.’ You have to cater to the needs of your business model, he says. ‘The ratio of entrepreneurship is more important than creating the lowest possible tax climate.’ Geared also to pay rolling for clients, Horatio ends up coming in contact with individual expats. ‘We started a consultation for international businesses in Amsterdam. A lot of international employees showed up as well.’ That resulted in work supporting individuals in managing their taxes and applying for the 30% ruling. Like the other specialists, Van Haeften is convinced his organisation provides better services than the giant consultancies. Tax law is quite arcane,’ he says. ‘Mistakes are made when companies don’t pay enough close attention.’ And personal attention is the specialism of the small firms.

Personal Finance 70 the INTERNATIONAL CORRESPONDENT

TAX ITS GREAT TO BEABLE TO HELP THESE PROMOSING STUDENTS DJENT ADMINISTRATIE

Tax specialist Daan van der Ent is one of the few consultants in the Netherlands focussing the growing group of international MBA students. According to Van der Ent, these students can be compensated for up to 15,000 euros each year for their studyrelated costs and living expenses. Van der Ent believes that this support is improved in the new legislation. And that is as it should be, according to the tax adviser. Foreign MBA students are important for the Dutch economy. “You need them just as you do highly skilled international staff,” says Van der Ent. Van der Ent is one of the few tax advisers supporting international students in the Netherlands. It was Van der Ent’s association with the Rotterdam School of Management (RSM) that led

him to this specialization. Since 1988 he has been the tax advisor for the MBA school. “I noticed that many MBA students could ask to get back part of their tuition and living expenses. It was something that could be arranged.” said Van der Ent. The percentage of foreign students enrolled in Dutch MBA education is more than 80 percent. That’s considerably more than at other universities and higher education institutions in the Netherlands, where the proportion is about 10 percent. The number of MBA programmes has grown over the past five years. The Ministry of Education in the Netherlands has registered 33 business courses. Some of them are independent, while others have been set up by existing universities. The head of Djent Administration is very enthusiastic about his international clientele. “It’s a very multicultural world. People come from all over the world for two or two and a half years to the Netherlands for their education. It’s great to be able to help these promising students.“

Netherlands. “They are often trained to practice in fields where supply is scarce in the Netherlands,” according to the fiscal expert. In recent years Van Der Ent has supported hundreds of students from the RSM in their dealings with the Dutch tax authorities. International students who study at a university or higher education can get a state grant for their school and living expenses. This does not apply to MBA students. In the expanded scheme for expatriates, international students following a business training in the Netherlands are more likely to receive compensation. The maximum in the new legislation is set at 15,000 euros a year. According to Van der Ent the scheme will have strict conditions. “International students may not have received any income during their MBA study in the Netherland.” He also points out that the students need to remain active in the Netherlands following their training. “Only then can the costs be deducted from future tax returns.”

EXPAT CONTROL According to Van der Ent, the rules for the thirty percent rule are being tightened. But he is not necessarily negative about that. “It is increasingly used to benefit internationals. And not always by the people for whom the exemption was intended.“ Of course, Van der Ent is a strong supporter of tax benefits for international students in the

PAYROLL In addition to supporting MBA students, Djent also advises individuals and international companies in the Netherlands. His office provides financial administration and consultancy for SMEs and handles the payroll for 20 or so companies. Djent Administration b.v. currently has an international staff currently consisting of eight individuals of various nationalities.

FOR MORE INFORMATION VISIT: WWW.DJENT.NL

10 Top10

PHOTOGRAPHY: WFA/ REIN VAN ZANEN

72 the INTERNATIONAL CORRESPONDENT

DUTCH BUSINESS TYCOONS By Martin van Geest

You think The Netherlands sells cheese, tulips and wooden shoes? Think again. The biggest Dutch tycoons have made their money from clothing, vodka, television shows, Venetian blinds and tanning beds.

FRITS GOLDSCHMEDING RANDSTAD (EMPLOYMENT): ¤ 2.2 BILLION

ERIK BRENNINKMEIJER AND FAMILY C&A EST. WEALTH: ¤ 22 BILLION The richest family of the Netherlands is also one of the most mysterious. The Brenninkmeijers, owners of fashion chain C&A, hardly ever give interviews and their company is extremely stingy with information. We do know, though, that most of their wealth is earned abroad. The success story of this catholic clan started in 1841 in the Frisian town of Sneek, where brothers Clemens and August Brenninkmeijer founded a small textiles business. Nowadays, C&A is one of the largest privately owned retail chains in the world, with 36,000 employees who work in over 1,400 stores, only 130 of which are in Holland. Germany is by far the largest market for C&A with nearly 500 shops. Other key countries include Belgium (136 outlets), Austria (also 136), Spain (125) and France (122). The chain’s headquarters is based in the ever so discrete – and fiscally attractive – Swiss canton of Zug, so no one really knows how much money the Brenninkmeijers make. Apart from total sales (¤ 6.6 billion in 2010), their company doesn’t publish any figures. The highest boss of the family empire is 55-year old Erik Brenninkmeijer, who also lives in Zug, in a surprisingly modest chalet. Apart from C&A, the family controls a variety of investments, ranging from Dutch newspaper NRC Handelsblad and German solar energy company Q-Cells to DenMat, the biggest supplier of products for dentists in the US. And then there’s their vast real estate portfolio, which

comprises over 5 million square metres of prime retail space at top locations throughout Europe and Asia. The buildings are estimated to be worth over ¤ 7 billion and, reportedly, none of the properties is mortgaged. Even if the family took out a mortgage, they could still earn money from it, as the Brenninkmeijers also own their own bank. They’re that rich.

CHARLENE DE CARVALHO HEINEKEN C&A EST. WEALTH: ¤ 22 BILLION Charlene de Carvalho-Heineken (57) is the only heir to the Heineken empire. She has a stake of nearly 25 percent of the beer behemoth. Heineken is arguably the most successful Dutch brand internationally. Thirsty drinkers around the world are willing to pay premium prices for the recognizable green bottles and cans, which is quite a feat considering that 92 percent of beer consists of water and most people don’t even recognize their own favorite brand in blind tastings. Only a small fraction of Heineken’s annual production of 146 million hectolitres (including brands such as Moretti, Sol, Murphy’s and Sagres) is consumed in The Netherlands.

Frits Goldschmeding (78) is often nicknamed ‘the patriarch of temporary employment’. In 1960 he founded temporary staffing-agency Randstad, which has grown into the second largest HR company in the world, after Adecco. Every day, more than half a million people in over 40 countries are employed through Randstad. In 2010, the company reported over ¤14 billion in revenues, four-fifths of which is generated outside Holland, mainly in France, Germany and the United States. Goldschmeding is officially retired and no longer involved with Randstad’s daily operations, but he still owns 33 percent of the company.

JOHN DE MOL MEDIA: ¤ 1.7 BILLION John de Mol (56) is the front man for one of Holland’s biggest export products: television show formats. He’s the creative brain behind programs such as Fear Factor, Deal or No Deal and, most notably, Big Brother, the show that set off the global reality TV craze that still lingers on. De Mol became a billionaire when he sold his production company, Endemol, to Spanish phone company Telefónica at the height of the internet craze in 2000. Now, hundreds of millions more are coming in as his new media company, Talpa, is selling the rights to its talent hunt format The Voice of… to xx countries around the world.

Brewr De Carvalho-Heineken

PHOTOGRAPHY: WFA/FOTOBURO DIJKSTRA

PHOTOGRAPHY: WFA

the INTERNATIONAL CORRESPONDENT 73

Staffing-agent Goldschmeding

Entertainment tycoon De Mol

Ralph Sonnenberg (77) owns close to 80 percent of Hunter Douglas, the world market leader in blinds and other window coverings. His father, Henry Sonnenberg, started the business back in 1919 and struck it rich when he invented a new – much cheaper – way of producing aluminium slats for Venetian blinds. Hunter Douglas is based in Rotterdam but nearly two thirds of its production of curtains, blinds and window shutters (roughly Ð 2.5 billion annually) is sold outside of Europe. Sonnenberg has been CEO of the company since 1971, but doesn’t even think of retiring. He once said he intends to be boss until his 90th birthday.

Alfred Balm (75) was born in Holland, but now lives in Calgary, where he owns the biggest house in the city. His company, Emergo, is involved in real estate, air transportation, oil exploration and financial services. Never heard of him? That’s exactly the way he likes it. Emergo’s website doesn’t list a phone number, just the phrase: ‘Don’t call us, we’ll find you.’

In 1948, Pieter Schelte Heerema founded a small construction company servicing oil platforms off the coast of Venezuela. His son Pieter Heerema junior (60) now owns and heads the Heerema Group, one of the largest global contractors for the offshore oil and gas industry. Despite the slump in oil prices, the business proved quite lucrative in 2010: net profit amounted to ¤ 94 million.

10.

Koos van Oord (64), together with his family, owns 78.5 percent of Van Oord, one of the largest dredging and marine contracting companies in the world. Van Oord built part of Holland’s famous Delta Works, but its more recent claims to fame can be found in Dubai: the artificial archipelagoes, Palm Jumeirah and The World. In 2010, Van Oord reported a net profit of ¤ 165 million.

Even though most people in Holland have never heard of the company, VDL Group is one of the country’s most prominent industrial conglomerates, comprising 79 companies in 16 countries. Its 7,700 employees produce a wide range of products, including cigar-making machines, public transport buses, sunbeds and metal parts for the petrochemical industry. Owner and CEO Wim van der Leegte (64) oversees it all from his headquarters in Eindhoven.

RALPH SONNENBERG LUXAFLEX (BLINDS): ¤ 1.3 BILLION

CAREL NOLET AND FAMILY KETEL ONE: ¤ 1.1 BILLION The Nolet family has been in the distilling business since 1691, but in the first three centuries they mainly produced jenever, the Dutch national grain spirit. In the eighties, tenth generation owner Carel Nolet (70) introduced Ketel One Vodka in the United States. It became a huge success: in 2008, beverage behemoth Diageo (Smirnoff, Baileys, Guinness) paid $900 million to become the world’s exclusive distributor of Ketel One Vodka.

ALFRED BALM INVESTMENTS: ¤ 1BILLION

KOOS VAN OORD AND FAMILY DREDGING: ¤ 785 MILLION

PIETER HEEREMA OFFSHORE: ¤ 780 MILLION

WIM VAN DER LEEGTE MACHINERY: ¤ 680 MILLION

Special thanks to our colleagues from Quote magazine for their elaborate calculations of each person’s net worth, as found in their annual national rich list Quote 500.

We invite

you to out our special christmas brunch and dinners www.sucrerestaurant.nl

Exquisite dinner in a beautiful scenery Lunch and high tea in a cosy atmosphere Profesional meetings and corporate dinners Extra ordinary wines and desserts to serve and to take away

the INTERNATIONAL CORRESPONDENT 75

“ MIND MY WORDS. YOUR GUESTS WILL EVEN TRY THE PLUM-PUDDING!” Chef’s Table, Chef Schilo van Coevorden. Read more on page 79 photo: Maarten Bezem

PHOTOGRAPHY MAARTEN BEZEM

What Where When

What Where When 76 the INTERNATIONAL CORRESPONDENT

THE SOUND OF EUROPE By Jeroen Jansen PHOTOGRAPHY: provided by Eurosonic Noorderslag

What started as a competition between the Netherlands and Belgium 25 years ago has ended as a major showcase for future Coldplays and U2s in Europe. Eurosonic Noorderslag offers you the sound of Europe and gives unknown but potentially gifted bands an opportunity to break through. The International Correspondent talked to founder and creative director Peter Smidt about the talent we seldom get to hear. EUROSONIC AND NOORDERSLAG ARE TWO DIFFERENT FESTIVALS. WHAT’S THE DIFFERENCE? Eurosonic is the largest European showcase festival. It presents an overview of the best new bands in Europe, including some from the Netherlands. The Noorderslag festival, which takes place on the last of four days, is totally dedicated to Dutch music and has been the main barometer of Dutch pop music for 25 years now. MOST BANDS ARE QUITE UNKNOWN. ONE MIGHT THINK THAT THEY ARE NOT THAT GOOD OR ELSE WE WOULD HAVE HEARD OF THEM ALREADY. That is simply not true. In general we only listen to music from the United Kingdom and the United States, added to the music from your own country. That’s a shame, because there is a huge amount of talent elsewhere. There are many good east and south European bands, or bands from Scandinavia. Cities like Vienna, Marseille and Warsaw are literary rocking. But unfortunately European music is limited by borders. Because of language differences and because of tradition. In every European country more money is spent on American music than on the European music scene. The media is used to focusing on music from across the Atlantic. Because of this cultural barrier, we don’t often get to hear the best of the rest. Not on the radio and not at

the big music festivals. Eurosonic is one of the few exceptions and gives you the opportunity to look across borders. HOW DO YOU CHOOSE YOUR BANDS? WHAT ARE THE CRITERIA? Eurosonic is broadcast on the radio in 25 European countries. We work together with those 25 radio stations. They are our eyes and ears, and tell us which bands are hot and happening in their own country. Apart from that, we travel a lot. And when we do so, we visit concerts and festivals, such as Glastonbury, Rock am Ring, Sziget and Roskilde. So we scout a lot. Bands know how to find us as well. Every year we get over 3,000 applications. In the end, we make a selection of 300 bands. According to us, these are the bands that have a future of being successful in other countries as well.

WE ALSO ATTRACT A LOT OF PEOPLE WHO WORK FOR RADIO STATIONS AS MUSIC PROGRAMMERS. THAT MAKES IT EVEN MORE INTERESTING FOR BANDS TO PERFORM IN GRONINGEN.

THAT ACTUALLY MEANS EUROSONIC OFFERS BANDS AN OPPORTUNITY TO BREAK THROUGH. CAN YOU GIVE AN EXAMPLE OF BANDS WHO ARE FAMOUS NOW AND USED TO PLAY AT EUROSONIC? Franz Ferdinand, Selah Sue and Triggerfinger played at Eurosonic in their early stages. So did Moneybrother from Sweden, Urban Dance Squad and Kyteman from the Netherlands and the UK’s Editors and The White Lies. Peter Schmidt

the INTERNATIONAL CORRESPONDENT 77

EUROSONIC NOORDERSLAG takes place on 11, 12, 13 and 14 January in Groningen city centre. For more information, visit WWW.FESTIVAL.EUROSONIC-NOORDERSLAG.NL/EN/HOME For tickets visit WWW.TICKETSERVICE.NL or call (+31) (0)900-3001250 One Eurosonic ticket for 2 days (12-13 January) will cost you ¤65,A passepartout for both Eurosonic and Noorderslag (11-14 January) ¤120,-

EUROSONIC IS NOT ONLY A MUSIC FESTIVAL, BUT ALSO A BUSINESS CONFERENCE. WHY IS THAT? For people working in the music industry, we offer an opportunity to book bands. Over 400 of them are decision makers. They have to decide who’s gonna play at which festival. Eurosonic has created a special platform for them, the European Talent Exchange Programme (ETEP). Those bands I mentioned before were booked for several festivals after they played at Eurosonic. We also attract a lot of people who work for radio stations as music programmers. That makes it even more interesting for bands to perform in Groningen. And we give seminars that address current developments within the European music industry, such as crowd control, which is a current theme after some of the recent disasters at major festivals like Love Parade and Pukkelpop in Belgium. WHY IS THIS FESTIVAL HELD IN SUCH A DISTANT CORNER OF THE COUNTRY? WHY NOT AMSTERDAM OR ROTTERDAM? Why not Groningen? The city is perfectly suited to this festival because of its compact center and tradition of live concerts in medium-sized venues. There are some really good stages, all of them at walking distance from each other. Eurosonic is held on 25 stages and you never have to walk more than 10 minutes to get from one

stage to another. Furthermore, the city of Groningen used to give late licenses only to bars and clubs that offered live music. That’s why there is such a tradition of live performances. THE FESTIVAL STARTED AS A COMPETITION BETWEEN THE NETHERLANDS AND BELGIUM, BUT SOON BECAME A SHOWCASE FOR EUROPEAN BANDS. THE NEXT LOGICAL STEP WOULD BE A WORLD-WIDE SHOWCASE. Occassionally we get requests from outside the continent, but we’re not thinking of expanding. Europe is already familiar with American pop music, so why create another platform for bands from the US? Besides, this concept is convenient as it is. It would lose its uniqueness when you open up for acts around the world. EVERY EDITION YOU SELL SOME 30,000 TICKETS. AND EVERY YEAR, THE FESTIVAL IS SOLD OUT BEFORE IT TAKES PLACE. EVER THOUGHT OF EXPANDING? No. There is no room for that. Besides, Noorderslag is broadcast on Dutch television and internet. And you can listen to the Eurosonic acts on the radio in 25 European countries. Some of them are even broadcast on television. THE EBBA AWARDS CEREMONY, ON THE FIRST NIGHT OF THE FESTIVAL, WILL ALSO BE SHOWN ON TELEVISION IN A DOZEN COUN-

TRIES. WHAT DOES EBBA STANDS FOR? EBBA stands for European Border Breakers Awards. They are established by the European Commission and will be awarded to bands that are also popular outside their own country. Their music is crossing borders. The EBBA awards are the only European pop music awards. Former winners are Katie Melua, Caro Emerald and Mumford & Sons. THIS YEAR’S FOCUS IS ON IRELAND. WHY IRELAND? Ireland has a long and strong music tradition and has been influential in modern rock, punk and pop music. Lots of Irish artists are making great music and are very successful worldwide. Beside, the country and Irish radio station RT 2 FM have brought many great artists to Eurosonic Noorderslag from the start, such as Villagers, James Vincent McMorrow and Bell X1. WHAT CAN WE EXPECT FROM THIS YEAR’S LINE-UP? A mix of bands that are fairly unknown in countries apart from their own and more established acts, like Baskerville, The Jacqueries, School is Cool, Great Mountain Fire and Baxter Dury. I think it’s a great mix.

What Where When the INTERNATIONAL CORRESPONDENT 78

JINGLE BELLS AND ALL THAT By Jeroen Jansen

Even if you want to, you cannot escape from christmas hysterics. Our advice? Make the most of it by going all the way, visiting markets and getting drunk on Glühwein. Before you know it, it’s December 26 (oh yeah, in case you didn’t know: the Dutch celebrate two days of Christmas). XMAS MARKETS You actually like Christmas markets? Then your finest days are yet to come. There are a number of established Christmas markets in Holland, including a unique event in Valkenburg, which takes place at the Fluwelengrot (Velvet Caves). Other famous markets take place in Nijmegen (the oldest city in the country), Amsterdam, Dordrecht, Deventer and Maastricht. The last one is also known as ‘Magisch Maastricht’ (Magical Maastricht). Until 8 January, the inner city will be transformed into a Winter Wonderland, with not only the market itself, but also several musical and cultural performances. There even is a 800 m2 skating rink on the Vrijthof, one of the Netherlands’ most beautiful squares. Or you can admire the skyline from a breathtaking height on the Ferris wheel. For everything you need to know about Dutch Christmas markets, visit: www.kerstmarkten.nl

BUENOS AIRES ON THE AMSTEL Every last week in December the city of Amsterdam shows glimpse of South American passion during the international tango festival Tangomagia. During this festival, Amsterdam will transform itself into ‘Buenos Aires on the Amstel’. Visitors from over 35 countries will be inspired to dance, follow workshops, watch performances and join a ‘MagiaMarathon’ which will last for 36 hours, including brunch/dinner and sleeping options for ‘marathonians’. Tangomagia offers workshops at all levels, performances by world famous Argentine maestros, tango music by international DJ’s and orchestras, nightly salons in majestic locations, and a daily tango café. Tangomagia takes place from 26-30 December. For locations, prices, reservations and more, visit: www.tangomagia.com

THE NIGHT ROTTERDAM SHOWS ITS CULTURAL FACE Can’t sleep? On the night of 10 March 2012, you have a reason to stay up. That night, the city of Rotterdam offers an inspiring cultural encounter during the ‘Rotterdamse Museumnacht’. Between 20.00 and 2.00 you can visit over 50 locations, from galleries to museums and open air exhibitions. It all starts with a show in the Museumpark. The central theme of this year’s museum night is ‘Taste’. All participants offer a motivational program for all ages. The best program is rewarded with an award. Among the participating organizations are some of the Netherlands finest museums, including Museum Boijmans van Beuningen, Nederlandse Architectuurinstituut and Nederlands Fotomuseum. For more info and online ticket sales, visit: www.rotterdamsemuseumnacht.nl

Chef ’s table Christmas dinner PHOTOGRAPHY: MAARTEN BEZEM

the INTERNATIONAL CORRESPONDENT 79

CHRISTMAS DINNER Á LA SCHILO By journalist Marco de Vries

You think Christmas equals turkey? Think again. In The Netherlands, it means rare things, ‘wild’ delicacies. For chef Schilo van Coevorden it comprises lobster soup, mussels and cockles from Zeeland, and warm running cheese on currant bread from Friesland. But also hare from the Veluwe with the season’s vegetables. Marco de Vries spoke to him in the almost-readyto-open Conservatorium Hotel. It’s ten in the morning and Schilo van Coevorden is already very busy. The grand opening is only weeks away after a three-year period of rebuilding this former Music College into a hotel in Amsterdam’s Museum and shopping quarter. Amid all the noise and dust, Schilo’s kitchens are already in full swing, test-cooking the dishes that are going to be on the menu. But the moment he sits down he’s relaxed. Or at least he looks relaxed. Keep it simple is his advice. Dangerous words when spoken by this well-known chef. ‘When I had to cook a Christmas dinner for my friends I would start with frozen salmon slivers and serve it with ice-cream with a touch of horseradish,’ he says. Which gives it a slightly fresh taste, he explains. To accompany this, Schilo chooses a warm salad made of vegetables like parsnips, red beetroots, oakleaf salad, mushrooms, the leaves of the red beetroots and roasted meat of the breast of quail or tame pigeons. Lobster soup is an old favourite for Van Coevorden. ‘The trick is that when you’ve made the soup that you whip it for quite a long time. Only then you get all the bubbles that makes it superlight to eat.’ ONLY VERY SMALL PORTIONS After the soup he likes to serve a course of poached fish mixed with bits of crustaceans like Zeeuwse mussels and cockles. The sauce should be finished off, though, with a touch of saffron to give it a bit more guts. Then the

hare. Not just a normal hare, but one from the Veluwe because it is much tastier than the others. ‘And please don’t throw away the blood from the hare. Use that to bind the sauce with the juice that’s left over from roasting it.’ Seasonal vegetables like mushrooms, lingonberries and sprouts go well with hare. ‘But pluck the leaves of the sprouts instead of using the full sprout. That way sprouts taste so much better!’ No meal is complete without cheese. That’s a strict rule for Schilo van Coevorden. So one of the courses of his Christmas dinner is a ‘running’ French Vacheron Mont d’Or. Because it is warm or ‘running’ you can spoon out of its wooden box. Although it is at its best, according to Schilo, when eaten on a slice of real ‘Fries krentenbrood’. Schilo loves desserts. ‘For the first one I like to poach fruit of the season in a sauce of malt whiskey. So little cubicles of apple, pear, quinces and some pineapple to give it a refreshing taste.’ And he is quick to add that it is poached in sugar water and served with sorbet ice. Although he knows very well plum-pudding is only for the diehards among his guests he thinks this old time favourite of his deserves to be served as second dessert. With lots of bread and butter sauce, of course, but only in very small portions. A grand Christmas dinner comes down to one rule: the more courses, the smaller the portions. ‘Mind my words. Then your guests will even try the plum-pudding’!

WHAT TO DRINK? Start with champagne to shake up your taste buds. Try Billecart-Salmon. If your guests are dear to you, spoil them with the Brut Rosé. An Oyster Bay Sauvignon Blanc from New Zealand goes well with the starters. Or a Rueda from Spain. Both should be two to three years old. With character but still ‘fresh’. Burgundy or Bordeaux is perfect for the main dish. But do consider a Rioja like a four-year-old Finca Valpiedra. Sweet white wine like a Sauternes or Muscat is fine to celebrate the end of your Christmas dinner. But serve it really chilled! Then tuck yourself deep into the sofa with a cup of tea of coffee (only single origins!) with a glass of fine calvados or Armagnac from a small property.

What Where When 80 the INTERNATIONAL CORRESPONDENT

WINTER BREAKS WE RECOMMEND By Marco de Vries

When the weather outside is frightful, a break can be so delightful

Bij Jef

Canal House

Keuken van Hackfort

Have you ever been to Texel, the biggest of our Wadden islands? Believe me, now is the time to go. I can almost hear you thinking: why, the weather is not particularly inviting this time of the year. No, forget about the weather. It is the new restaurant (with a couple of comfortable suites) run by Michelinstar chef, Jef Schuur, that you should go to. As tall as a tree and a born-and-bred islander, Jef is as stubborn as all islanders are known to be. Which, in his case, is an advantage. His cooking has its very own signature and he likes to cook with the ingredients from Texel. You’ve never tasted suckling lamb as you will taste it in his restaurant. He will push your taste sensations to the limit, in a positive way of course. The interior of the restaurant is mostly white with lots of glass. And there is the eversmiling sommelier Nadine. Who, by the way is Jef’s wife.

Contemporary, glamorous and comfortable is indeed is the best way to describe Canal House hotel. With a colour scheme of black, purples, greys and coppers it is designed to please the eye. Exactly the reason why owners Peter en Jessica Frankopan (yes, they also own the multi-awarded Cowley Manor spa hotel and L’Hôtel in Paris) hired the also multi-awarded architects of Concrete. They know how to rebuild a listed building into something modern but maintain respect for historical details. Canal House has 23 –all different- rooms in categories: Good, Better, Great, Exceptional and Best. If you care about what you see first thing in the morning, don’t forget to ask for a room with garden or canal view. The hotel is situated on a quiet section of the Keizersgracht, not far from the Jordaan and has got its own bar and restaurant. And the lovely Summer House at the back of the garden is available for small private dining parties.

If you are a hunting person, you might have heard of Vorden, also nicknamed the eight castles village. Although it’s quite a drive from the Randstad, it is certainly worth it because of the typical ‘coulissen’ landscape. At least that is what Eric ‘Mr Slow Food Holland’ van Veluwen thinks of it. Eric was and still is the passionate promoter of biological products and cooking, and uses them all the time in his own restaurant, de Keuken van Hackfort. His well-known hotchpotchs with a twist are a must when you go there at this time of the year. During the weekend his ‘mashed’ menus are popular and quite a surprise, even to the seasoned bio foodie. Some of the vegetables of the season come straight out of Eric’s own gardens near the restaurant, or from nearby farms.If you decide to go there when is really cold, then choose the wine&munch menu. Which is served in front of the fireplace. Take it slow and easy!

Herenstraat 34 1797 AJ Den Hoorn, Texel 0222-319623 Packages from ¤ 175,- p.p. (including dinner and a one night stay) www.bijjef.nl

Keizersgracht 148 – 152 1015 CX Amsterdam Doubles from ¤ 220,- per room

Baakseweg 6 7251 RH Vorden 0575-555 015 4-course menu from ¤ 35,(without wine) www.keukenvanhackfort.nl

www.canalhouse.nl

What Where When

PHOTOGRAPHY: TKFOTO.NL

the INTERNATIONAL CORRESPONDENT 81

SWEET SPOT HOLLAND By Thomas Dieben

Back in the 13th century, in Loenen aan de Vecht (near Utrecht) some aristocrats played a game with a stick and a leather ball. The objective was to put the ball into a certain target within the least number of strokes. Some say this is the origin of the golf game. Nowadays Holland is not often mentioned for its golf courses. But with over 150 golf courses there is a lot to choose. In this column I will give a short introduction of the three great courses in Zeeland in the south-west of the Netherlands.

Golfclub Grevelingenhout

De Goese Golf

De Woeste Kop

In the beautiful province of Zeeland, you will find water, beaches, tranquility and a couple of attractive golf courses. Golfclub Grevelingenhout is probably one of the most attractive courses of this region for the leisure golf player. The 18 holes are well maintained and have difficult elements like water and small fairways. Although the course is easy on the availability of green fee players, a disadvantage can be the crowd on busy days. The club offers practice facilities and an attractive restaurant.

The Goese Golf is probably the most prestigious course described in this column. The course can be challenging due to the wind and water. Therefore it’s really in line with the elements of the province of Zeeland. Other than the wind and water, the course is well maintained but not that attractive for the experienced golf player. The Goese Golf offers complete practice facilities including a well appointed 9 holes par 3 course. The restaurant offers a wide variety of items.

The parkstyle course of the Woeste Kop is quite attractive. As this course is not commonly known there is a good change that you can play relax and easy without being disturbed by other flights. The course can be a challenge as there are a couple of difficult holes. On Wednesday and Saturday a Motorcross in the vicinity can cause some noise. The restaurant offers an attractive menu with an excellent quality for the price you pay.

Green fees available for ¤ 50,- (weekdays) and ¤ 55,- (weekend). Golfclub Grevelingenhout | Oudendijk 3 | 4311 NA Bruinisse | 0111-48 26 50 | www.grevelingenhout.nl

18 hole green fee from ¤ 60,De Goese Golf |Krukweg 31 | 4465 BH Goes |0113-229557 |

18 holes green fees available from ¤ 50,De Woeste Kop | Justaasweg 4| 4571 NB Axel |0115-564467 |

www.goesegolf.nl

www.dewoestekop.nl

Always something

special

INTERBASICS INTERIOR Eerste van der Helststraat 41 1073 AC Amsterdam www.interbasiscs.nl

the INTERNATIONAL CORRESPONDENT 83

International Living

ROMANTIC MANSION IN THE HEART OF UTRECHT By Jeroen Jansen

International Living 84 the INTERNATIONAL CORRESPONDENT

Living in the centre of Utrecht and still get the feeling that you are in the countryside. It seems impossible, but Maliebaan 7 proves it isn’t. This monumental property is situated right in the heart of Utrecht, which itself is in the centre of the Netherlands. But this house is surrounded by so much (green) space that it could be anywhere out in the open. On one side this classical city villa overlooks the beautiful Maliebaan, which used to be the playground for a play called malie (pallemaile), an early variant of crocquet. In 1672 the French ‘Sun King’ Louis XIV was so impressed by this Maliebaan, that he said he wanted it to be brought to Paris. Nowadays the original playground is a stately avenue. On both sides you will find high trees and a number of 17 sculptures by female artists. The westside of Maliebaan is bordering Utrecht’s city park Lepelenburg. The panorama on the ‘streetside’ of the villa is therefore amazingly open and green. But let’s not forget the garden of the villa itself. This romantic parklike yard measures 1673 square metres and is decorated with a big lawn, beautiful trees and rododendrons. The front side of the house is facing a graveled parking, with space for several cars. A classical wrought iron fence gives easy access to the entrance of the house and its parking. The house itself is built in eclectic style and goes back to 1870. It has a historic-cultural monument status. It’s not difficult to see why. Behind the entrance you will find a grand foyer and classical staircase leading to the second and third floor. The ground floor is divided into a study, dining room and one sunny garden room with doors opening to a terrace. There also is a large kitchen with a food elevator to the piano nobile (noble level) on the second floor. This hall offers extremely high ceilings (4 metres) and plenty of light coming from the windows. The second floor offers enough space for four reception rooms. The two largest rooms are

LOCATION UTRECHT Property type city villa Year built 1870 Volume 1.400 m3 Living space 396 m2 Number of rooms 12 Extra’s - seperate barn Asking price ¤ 2.500.000,More information

www.waltmann.nl

the INTERNATIONAL CORRESPONDENT 85

“en suite”. Three of the rooms have a balcony as well. Besides a spacious and light foyer, the third floor offers five bedrooms, one bathroom and a seperate lavatory. A stair is leading to a fourth floor, which can be used as storeroom. Throughout the house you will find many original details, survivors from the late 19th century, including some of the ceilings, chimney’s and inner shutters. Together with the classical architecure and green surroundings they provide this city mansion its unique grandeur and a special air of romance, as well as a sense of seclusion, hard to be matched by any other house in the centre of Utrecht.

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SLFMD World Trade Center Amsterdam - Strawinskylaan 231 1077 XX Amsterdam T 020 – 675 02 01 M 06 – 14 43 33 20 WWW.SLFMD.COM

the INTERNATIONAL CORRESPONDENT 87

Dutch Style

ART MUST BE SELLABLE. THE LETHARGY IN THE ART WORLD IS COMING TO AN END. Dutch artist George Heidweiller photo: Maarten Bezem

Dutch Style the INTERNATIONAL CORRESPONDENT 88

YOU CAN’T TAKE DESIGN RISKS IN THIS TIME OF CRISIS

PHOTOGRAPHY: HANS UBBINK

By Dennis Roelofsen, Floris Müller

The Netherlands is now known for fashion. That wasn’t so 25 years ago when designer Hans Ubbink graduated from the Arnhem Academy of Arts. ‘The Dutch were always open and direct. But not when it came to fashion. Up to the 90s, Dutch men were mainly interested in not standing out.’

That revolution in attitude has helped Ubbink’s career as developer of his first fashion label J.C. Rags and later Book’s Menswear. But especially with his latest label Hans Ubbink, which is independent since 2000. He’s now the most prominent name in Dutch fashion. His clothes are now sold at the Bijenkorf and at specialist boutiques. But he claims not to follow the latest trends in the market. ‘You have to create something new,’ he says. ‘Not just a variation of what the consumer knows.’ Ubbink’s designs are mainly a mode of selfexpression for wearers. ‘Clothing is a means of communication. You brand yourself through what you wear. Life becomes easier and nicer.’ He wants to expand the range of choice for men. ‘For women there were always varieties of clothing. Men had a formal outfit, a shirt, sweater and trousers.’ His latest collection contains cardigans, sexy shirts and tailored pants. The financial crisis threatens to drive clothing in The Netherlands back into traditional mores, he admits. The designer can’t do much about this on his own. His designs for 2012 stress quality and are a bit more restrained than the rock and roll themes of earlier years. ‘It’s not just the consumer who is being less expressive in his dress, but also the buyers from the shops. They want to be sure that every item they place on the racks sell. With a risky design, they can’t be sure of that, but I think, actually that shops that carry clothing that distinguishes itself from the rest have a better chance of survival. It’s a question of finding the right balance...’

Dutch Style the INTERNATIONAL CORRESPONDENT 89

WHAT DO WE WEAR INSIDE WHEN IT’S COLD OUTSIDE? By Dennis Roelofsen

One way to avoid a total state of gloom is to just counter-dress the weather. Pick your colours like it’s spring but with winter materials and a few more layers.

VAN GILS DOING GOOD SHIRT ¤ 79,95 VEST ¤ 129,95 Thank god for good taste and fine manners. We truly believe that dressing well is the first step to doing good and attracting the good. The Dutch Van Gils brand started making suits in 1948. More recently, Van Gils has begun completely outfitting men with a bigger collection, ranging from suits to socks and from pullovers to overcoats. Of course this isn’t exactly your life-changing experience, but the style is always good and highly contemporary.

www.vangils.eu

FRATELLI BORGIOLI DON’T TRY THIS AT HOME PRICE: ¤ 319,Let’s remix and remodel the archetypes of men’s footwear. We guess that’s what the team at Borgioli must have thought when they designed the new collection. We selected a blue monkstrap in washed leather. We all know that leather and water are not a great match, so don’t try this at home. However the result of this exploration is a wicked new look that is best compared with stone-washed jeans. The sturdy vinyl coating on the leather sole gives this pair of handmade shoes the right stamina for wet and cold circumstances. among others available at

www.possen.com

GSUS YOUR NEW BEST FRIEND PRICE: ¤ 79,95 The provocative brand Gsus was born in the early nineties in Arnhem,The Netherlands. While the street-scape was filled with baggy shirts, Gsus attracted great attention by bringing a collection of slim retro t-shirts with 70’s prints. Over the years, innovation and controversy have been buzz words around Gsus. Although the rebel has matured, he hasn’t lost his ambition to surprise. But some rich basics have been added to the collections. In this outfit, we chose a soft, washed chino that will certainly be your new best friend.

www.g-sus.com

NMBR NINE PYTHONS AND LIZARDS PRICE: ¤ 140,Okay, we are the first to admit it, this IPad sleeve comes from a womens collection. Do we really care? The answer is no. It’s beautiful enough to defy convention. The lizard skin wraps and protects your gadget in the most elegant and sexy way. NMBR NINE also offers accessories made of python leather. Visit the website for boutiques and stores.

www.nmbrnine.com

Dutch Style

PHOTOGRAPHY: TILLER GALLERIE

the INTERNATIONAL CORRESPONDENT 90

THE ARTIST AND THE WORLD: A THREEWAY CONVERSATION By Floris Müller

Dutch artist, George Heidweiller, has held exhibitions influenced by New York and Las Vegas, but has been focusing recently on pieces depicting the Dutch capital, Amsterdam. These are exclusively displayed at Marjan Tiller’s gallery at Jacob van Campenstraat in the Pijp. Floris Müller caught up with both Heidweiller and Tiller at the gallery for a conversation about art and the art business in today’s crisis.

IN YOUR WORK, WE MAINLY SEE BUILDINGS AND INDUSTRIAL SIGHTS. George Heidweiller: Yep. I like to depict cities. Life in the city. My paintings are a combination of paint and the use of silkscreen techniques on canvasThis is the development of that. With silk-screen prints, you can expand images or shrink them. This is the development of that. With silk-screen prints, you can expand images or shrink them. BUT YOU HARDLY SEE PEOPLE IN YOUR URBAN LANDSCAPES... Yes. My work could be the backdrop for a film. To put people in would decrease the cinematographic element. You’d then create distance. WHAT DO YOU WANT TO SAY TO YOUR PUBLIC WITH THIS WORK? I don’t have a conscious message. It’s more about creative activity. I’m more of a working artist than a dreamer. As artist you accomplish things by working on them and trying out things rather that endlessly thinking about the possibilities. HOW DID YOU DEVELOP SINCE THEN? I began with very severe drawings. But when I developed skills, I made myself abandon my original approach as far as possible. I worked as assistent to Dutch icon Herman Brood for many years, learned a lot about handling customers and sales from him. A few years later I did my first American urban landscapes and a series about Dubai. A large hotel in Amsterdam then asked me if I could produce work with Amsterdam in it. HAS THE ART WORLD CHANGED IN RECENT YEARS? Absolutely. With the cuts in art subsidies, the emphasis is returning to the commercial value of art. Up to a few years ago, art was used to lift up the people. Now the public is central. Art must be sellable. The lethargy in the art world is coming to an end. Marjan Tiller: In other words, the public must like the work. DID YOU DEVELOP THAT ATTITUDE AS A RESULT OF YOUR TRAINING? I studied at the Royal Academy of The Hague. It’s known to be quite conservative, mainly focused on practicing skills and choosing materials. Other academies are more experimental. Afterwards I went, as per tradition, to learn from a master. He convinced me that art is more perspiration and just a little about inspiration. IS AMSTERDAM CHANGING AS A CITY OF ART?

Marjan Tiller: Absolutely. In the seventies and eighties, most art enterprises were set up in the Rijksmuseum area, with its rather elitist atmosphere. It was difficult to get into the galleries. Now you see a lot more art concerns springing up in yuppie neighbourhoods and lower class areas. The atmosphere is different. More open. Tiller Gallery is exactly on the border between the Museum district and the Pijp. TILLER GALLERY BELONGS TO THE ACCESSIBLE ART FIELD? Absolutely. Art is for everyone, not just for the few who have money to burn. That’s how my artists think. Rock and Roll Junkie, Herman Brood, whose work I display, said that everybody must have one of his works hanging over his sofa. Same goes for Peter Donkersloot, known for his huge image of Scarface, The Godfather and Marilyn Monroe. And for Heidwewiller. IS THE EXPERIENCE OF ART BY THE PUBLIC SO CHANGED? Certainly. Before, people bought a canvas they could look at for the rest of their lives. Now people buy pieces for shorter periods. Younger people learn about art and begin with a print. After some time they can afford an original piece or maybe a couple of canvases. They expand their interest more in a particular work or in the work of a particular artist. IS THE ART BUSINESS UNDER PRESSURE BECAUSE OF THE CRISIS? People take more time to choose a piece and they are more choosy. But the public does keep buying. Art is a way of escaping reality in crisis. Collecting Art can be very addictive. WHAT ABOUT ART AS INVESTMENT? The prices are under pressure. But in general you can say that quality work always increases in value. Editions and Art-Prints are retaining their value. IT LOOKS LIKE YOU ARE ALSO BREAKING THROUGH IN THE US, GEORGE. George Heidweiller: Yep. Since I returned from America, strangely enough. I worked and studied in Santa Fe in New Mexico from 2007 to 2011. A week after my return home a wealthy couple came to Tiller Gallery. They have business in Miami and Aspen. They were particularly interested in my American pieces. AMSTERDAM’S CANALS FOR THE VS? My work has a lot of American influences. Marjan Tiller: What attracts them is the international character. Cosmopolitanism. Americans look for something different in art. But it must have a basis in the work being considered. That’s precisely what George does.

PHOTOGRAPHY: MAARTEN BEZEM

the INTERNATIONAL CORRESPONDENT 91

Dutch Style the INTERNATIONAL CORRESPONDENT 92

DESIGNER: PAUL DE ZWART

ANOTHER COUNTRY By Thierry Somers A friend of mine bought a second home that he had to decorate. His children told him to go to IKEA to buy some basic furniture. He, though, was adamant. “When I die, is this what you would like to inherit?” he asked. Another Country’s basic furniture, though, is something I wouldn’t mind inheriting. It’s timeless, minimalistic, well crafted from natural materials, with beautiful design. Another Country was founded two years ago by the Dutchman, Paul de Zwart, who was looking for a well designed and well priced three legged stool that would serve as a bedside table for his country house in Dorset. As he couldn’t find the piece, he turned to Dom Parish, a cabinet maker he found on the internet. Pleased with the result, the idea as to whether there was a brand in the offing came to De Zwart.

Whilst De Zwart is not a trained designer himself, he has some notion of design as he was a former publisher of Wallpaper magazine. He sketched out a collection and Parish made them into models and prototypes. Consisting of a stool, dining table, bench, day bed, round coffee table and console – all made out of solid oak – it was launched at the London Design Festival 2010. The reviews were jubilant. “Best new furniture around,” the Guardian stated. A second collection has been launched in the meantime, as well as a range of accessories. “We wanted to express the ethos of the brand in a most simple, pared-down way,” explains De Zwart. “Another Country is about simplicity, good value, longevity, sustainability, and archetypal design that doesn’t tire.” Heirs will fight for it. www.anothercountry.com

Take advantage of one of the most cost-effective tools for your business

Toys for Boys the INTERNATIONAL CORRESPONDENT 94

By Jeroen Jansen

NOKIA STRIKES BACK Nokia, a former manufacturer of dumpphones, is back on track with the recent launch of the Lumia 800. Dubbed ‘the first real Windows phone’, it offers some serious specs. With its elegant looks, 3.7 inch capacitive AMOLED touchscreen for crystal clear images, 8MP camera, free Voice Navigation (in 2D and 3D), Microsoft Office, Windows Live, Mix Radio and Nokia Music, this one is finally gonna match Apple iOS and Google Android phones. Price: ¤ 500,www.nokia.com

ALL WEATHER CAMERA There is a risk in taking your camera skiing, snowboarding or hiking in the cold. Unless this camera is Nikon’s rugged Coolpix AW100. This one you can drop in the snow and it will still do the job. The AW100 (‘All Weather’) is waterproof, freezeproof and can survive drops onto a hard surface from five feet. Inside is a 16-megapixel CMOS sensor, ideal for low light shooting and fast operation. It also incorporates a Nikkor wide angle 5x zoom lens and built-in vibration reduction. Price: ¤ 349,www.nikon.com

ONE TABLET, TWO SCREENS Sony’s new Tablet P is not just another iPad clone, but something else completely. First of all, we have to mention its sexy clamshell design. This folding tablet computer comes with two 5.5-inch displays. When opened, the two displays can be used as a single screen or two distinct displays. The hardware offers front and rear cameras, 3G, access to PlayStation games as well as Sony’s Reader Store, and thousands of Android apps. Available in January. Price: ¤ 599,- (18GB)

www.sony.com

HONEY, I’M LATE! Dutch automotive navigation giant TomTom introduces a helpful feature for notorious latecomers. The GoLive 1005 World automatically twitters your arrival time, so that your contacts know when to expect you. Whenever your TOA changes, it will send a new message. Also, accurate traffic info is updated every two minutes, which is up to seven times more often than any other provider. And with Search&Go you can compare places when you are out and about, or even read reviews. Price: ¤ 350,www.tomtom.com

Toys for Boys the INTERNATIONAL CORRESPONDENT 95

TESTING, TESTING, 1, 2, 3...

APPLE AIRPLAY SPEAKERS

By David Lemereis

If you hate cables, demand ease of use, and crave design, these AirPlay speakers may be just what you’ve been looking for. Apple’s AirPlay allows you to wirelessly stream your music, photos and video from a Mac, PC, iPod, iPhone or iPad. There are many such devices on the market, but most of them use UPnP technology, which involves a nightmare of fiddling with port settings on your wireless router. Setting up AirPlay speakers is a breeze. You simply log in to the speakers via a web-browser and tell it which wifi network to use. That’s it. As long as your Mac, PC, iPod, iPhone or iPad is logged into that network, you can listen to all your tunes by selecting the name of the AirPlay speaker from a list. No more, no less. You can also set up speakers in different rooms and, as you move from the living room, switch your tune to the AirPlay speaker in your study. Brilliant!

BOWERS & WILKINS ZEPPELIN AIR

LIBRATONE LIVE

PHILIPS SOUND SPHERE

The Zeppelin Air AirPlay docking station lends its name and design from the famous Zeppelin airship. It was also the first AirPlay speaker to hit the market. In some ways you can tell because it has a built-in dock for playing tunes from you iPod or iPhone directly. That’s nice for charging but a little redundant on a speaker that is specifically designed for streaming music wirelessly via AirPlay. The build quality is very good and the design feels classic. The horizontal design, however, does require a relatively large footprint. Priced at 599 euros, the 2.1 speaker system delivers a serious bass with decent midrange and crispy highs.

This triangular, Danish-designed, AirPlay speaker, with its chrome handle wrapped in Italian cashmere wool, typifies minimalistic Scandinavian design. The Libratone Live is available in grey, beige, red or black. The build quality is outstanding. The speaker housing hidden behind the cashmere is made out of wood, which really contributes to sound quality much richer and authentic than the Zeppelin Air. The FullRoom acoustics which should give you a 360 degree sound experience, however, is less pronounced than claimed. Nonetheless, this is one of the best sounding AirPlay speakers on the market. But it comes at a steep price. 699 euros for the grey version and 799 euro’s for coloured versions.

The Philips SoundSphere consists of two speakers that give you true stereo sound. The barrel shape of the wooden body is beautiful, but some people may be put off by the free floating tweeters that look like alien eyes on sticks. Whether you like the design is a matter of taste. Priced at 799 euros, these speakers give you the biggest bang for your buck because the neutral bass, full midrange and clear highs makes it by far the best of all three AirPlay speakers.

www.bowers-wilkins.com

www.libratone.com

www.philips.com

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Last words the INTERNATIONAL CORRESPONDENT 97

WHAT TO READ IT’S THE ECONOMY, STUPID By Joost van Kleef

OK, we know there’s a crisis. And obviously, you read everything the papers say about the big financial squeeze, and you never miss the news on TV. But still, you’re not comfortable. You know that Europe hasn’t got two pennies to rub together, but you don’t really know why. You needn’t worry; you’re not alone. And even though Europe isn’t printing money yet, the book trade’s presses are working flat out. ‘Wall Street got too greedy? Wall Street is always greedy!’ It’s Michael Lewis talking. Lewis is the leading economics journalist you know from Vanity Fair, and even more from his alltime bestseller Liar’s Poker, the literary counterpart to the movie Wall Street, which hopefully needs no introduction. Twenty years after Liar’s Poker, Lewis has published the unofficial sequel to his money bible: The Big Short. It’s a compelling story, covering the first stirrings of what finally became the global credit crisis, speculating on the collapse of the market in subprime mortgages. Say that again? Subprime mortgages. Those are tricky financial products. In short, you / somebody / a bank / all of Wall Street lend enormous amounts of money to people who can’t afford it - hence ‘sub-prime’ and then you chop up the loans, repackage them and sell them to other people for ‘less risk’ (?)

- preferably as far away as possible. You may be wondering: why would you want to lend money to somebody who can’t really afford it? Well, it’s an entirely new market! And: the entire middle class just breathes loans and mortgages and credit cards. Take a look your own bank statements. Get the idea? To go back to Lewis. The Big Short is an enthralling story told at a breathtaking pace. But that’s the problem. Not all of us out there are quite as sharp as Lewis likes to think. The reader can easily get lost in a whirl of economic jargon – that Lewis doesn’t always explain – and the technical financial details. So readers of this book shouldn’t forget to buy Economy for Beginners as well. Note: if you want to work on your Dutch, The Big Short is also available in Dutch. The title is almost identical: The Big Short, de geheime winnaars van de kredietcrisis.

The big short, inside the doomsday machine, MICHAEL LOUIS, PENGUIN, ¤ 9.95 Grand Pursuit comes from a completely different direction. This isn’t a book about the crisis, but a book about the history of economics. A biography of all the financial geniuses of history. Well, from Victorian times onwards, after God and the Church had pulled out of the destiny business. Historian Sylvia Nasar, known from her global bestseller A Beautiful Mind, crafted a fantastic book (weighing in at more than 500 pages) about money, from Karl Marx to Greenspan. Rea-

ding Nasar, you might think we know everything about the economy these days. So we can manage a crisis or two. The Asian crisis, Tulip Mania, the Internet bubble, the oil crisis, the Great Depression: we survived them all. So we’ll certainly get through this new mess. Nasar has written an exceptional, and exceptionally good, work that you should take the time to read. It’s worth the effort. You won’t regret it.

Grand Pursuit, the story of economic genius, SIMON & SCHUSTER, $ 35,TRASH! With all the financial problems, you tend to forget there is another crisis: climate change. The planet is warming up (isn’t it?), things are getting hotter and hotter (and hotter), the icecaps are melting, the seas are rising... If we don’t do something, we’re all going to hell in a handcart. A while ago, Cambridge put its name to a volume that was destined to be the last word about the subject. But just as that book started its climb up the bestseller list, the economic shambles hit the

fan. The Climate Crisis died a quiet death. A fate it entirely deserved: this is yet another book about global warming that the general public will find completely unreadable and impenetrable. Is the planet getting warmer, or will it all blow over? The scientists can’t agree, and Archer and Rahnstorf fail to convince the skeptical, attentive reader.

The Climate Crisis, an Introductory Guide to Climate Change,

DAVID ARCHER & STEFAN RAHNSTORF, CAMBRIDGE UNIVERSITY PRESS, ¤ 33.99

Last words PHOTOGRAPHY: SANNE FERWERDA

the INTERNATIONAL CORRESPONDENT 98

LOST IN TRANSITION I looked back at them. Stuck together in the French subway system, they didn’t appear as elegant as I had imagined. Or was it that elegant French people don’t take the subway? Perhaps the elegant ones walk from A to B, from the café, where they eat a croissant and drink a small café, black and strong, to their fashionable jobs on their high heels, while they save their sweet smiles for their sweet men and the fishmonger.

People kept staring at me. I felt like a stranger, something the Parisians in my subway noticed immediately, like a wrongly buttoned shirt (a French person would notice that). They stared in my direction, looking away discretely when my eyes met theirs. It was to be expected. My limegreen suitcase gave me away. I was an outsider in their underground universe. The English book in my hand didn’t help. As a result, my Ibelong-here-so-I-don’t-care-look didn’t work so well. I felt lonely. And stared at. Citizen of the world; Paris not included. A man from the Maghreb spoke loudly into his phone. An African lady with a weary look on her face closed her eyes and sighed heavily. A blonde girl, probably aged around twenty, was reading a book. A worn-down Simone de Beauvoir, in which she scribbled notes. She probably studied French literature and wore berets as a patriotic statement, although now she was wearing a maroon felt hat. Maybe she saved the beret for her elegant trips to the café. She smiled at me when she noticed me, pretending to read a book, a likeminded spirit in a subway full of fools. The transfer between the green and the purple line took forever. My small suitcase trailed behind me as I walked the endless corridors. A broken down pay phone. A young mother from Romania or Serbia, with bare feet and a small paper cup in front of her, begging for change. I felt uncomfortable, hastened my pace. I could see the

girl with the felt hat strolling before me, just a couple of meters away. The impossibility to make contact made me feel so very alone in that hallway filled with people that I pivoted on my heels and collected the change from my pockets, guiltily throwing them in the cup of the woman with the dirty feet. She murmured thanks to the floor, not once looking up. It took a minute or two before the train arrived at the transfer platform. In the meantime, I sat down on my suitcase. The book in my hand was closed. I kept drinking in the musty air that blew through the tunnels. Breathing calmly, so as to keep the situation under control, to keep myself under control. It didn’t work well. I felt strange, as though I had lost something, something elemental. Suddenly, I felt so tired I just wanted to close my eyes and sleep, sitting on my suitcase in the depths of the Parisian soil. The arriving train awakened me, forced me to stand up and claim my space in the busy train compartment. When I finally arrived at my hotel, a gigantic tub welcomed me at the left side of the room. A tub in which I could wash the stains of strangeness of my body, in which I could become Parisian, or myself again, in which I could regain whatever I had lost on those subterranean train tracks. I let the water run and immersed myself under the surface, the hot water cleansing me, making me whole again. To think I nearly lost myself, in buried French transition.

FENNA FERWERDA works as a corporate lawyer for an international firm at theZuidas, Amsterdam’s financial heart. Sometimes amused, sometimesbewildered, she observes the comings and goings in this square kilometreof Dutch high-rise. fenna is not her real name.

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