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Holland's economy would grow by €1.5tn if it left EU, claims study

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The average Dutch household could be better off by over €9,800 a year and national income will grow by more than €1.5 trillion if Holland leaves the European Union, according to a study.

Research by the British Capital Economics research group into "Nexit" – a potential exit by Holland – found that the country could benefit significantly over the next two decades if it were to swap the EU and the euro for a status similar to Switzerland or Norway.

The report said that a country "untied from the bureaucracy of Brussels and able to make decisions for itself rather than have imposed one-size-fits-all policies" would benefit economically.

Conservative eurosceptics and the UK Independence Party seized on the report to counter what they see as alarmist warnings from business leaders and politicians of an economic meltdown if Britain leaves the EU.

SIGNIFICANT

"This report is significant because it has been produced by a credible City research group. It cannot be easily dismissed," said Tory MP Douglas Carswell.

"We're very like the Dutch, a small country that has prospered by trading globally. Think what countries like ours could be in a different type of Europe."

While leaving the EU had its risks, Capital Economics concluded that Holland, a creditor country in the eurozone, would be better off outside because of the threat posed to its long-term wealth by the structural problems of the single currency.

"There are, of course, risks to leaving the union – and these need to be recognised and addressed by anyone considering Nexit," the report said.

"But there are also significant risks to staying in a bloc with a fundamentally flawed currency. In this instance, our analysis shows that the Netherlands would be better off taking control of its own destiny, rather than sticking with the devil it knows."

The report concluded that Dutch national income could increase by as much as €1.5tn by 2035, bringing wealth equivalent to between €9,800 per household each year. (© Daily Telegraph, London)

Irish Independent