How could competition policy make a greater contribution to increasing productivity growth?
Activation and employment creating measures need to be complemented by measures to increase productivity. Enhancing competition in product markets is probably the most important means of improving relatively poor productivity growth, especially in non-traded services. The Netherlands has a history of widespread anti-competitive practices but the authorities have been vigorously combating these in recent years. Competition law was strengthened and brought into conformity with EU norms in 1998 and a new competition authority, the NMa, was created. Initially, the NMa focused on a mountain of applications for exemptions from the new Competition Act, reflecting the importance of corporatist arrangements in the Netherlands, but it has since been able to turn to driving out anti-competitive practices. It has been particularly active in the construction sector, where a parliamentary inquiry found that there was widespread bid rigging. Following an evaluation of the Competition Act and experien
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