Dutch Government Collapses as Wilders’ Exit Puts Biotech Sector at Risk

On June 3, 2025, the Dutch government collapsed after Geert Wilders’ far-right Party for Freedom (PVV) withdrew from the coalition over asylum policy disputes. Prime Minister Dick Schoof, leading a caretaker government, announced the cabinet’s resignation to King Willem-Alexander following the PVV’s exit, which left the coalition with only 51 of 150 parliamentary seats. The resignation of Schoof means that a caretaker government will lead until elections, likely in autumn 2025. This political uncertainty raises concerns for the Netherlands’ biotech industry, a key player in Europe’s life sciences sector.

Political Upheaval in the Netherlands Threatens Biotech Stability and Healthcare Progress

The Netherlands has firmly established itself as a leading European biotech hub, often referred to as “Europe’s connected life sciences & health metropolis.” The country is home to over 1,979 life sciences companies, including major firms like uniQure—developer of the first approved gene therapy for hemophilia B—Galapagos, and DSM-Firmenich, a pioneer in sustainable bioproducts. It also hosts the European Medicines Agency (EMA) in Amsterdam and ranks sixth globally for biotech patents, reflecting its robust innovation ecosystem.

Key biotech centers such as Leiden Bio Science Park—celebrating its 40th anniversary—and Rotterdam Square, known for its focus on health tech, foster collaboration through the “triple helix” model that integrates academia, industry, and government, as highlighted by Esther Peters, Director of Leiden Bio Science Park. Further affirming its long-term commitment, the Dutch government introduced a 2040 Biotech Vision in April 2025, allocating €1.3 billion (approximately $1.41 billion USD) to accelerate innovation in health, sustainability, and food security.

The collapse could delay critical biotech initiatives, affecting healthcare access. Regulatory disruptions at the EMA may slow approvals for therapies like gene treatments, impacting patients in the Netherlands and Europe. Supply chain issues could disrupt vaccine and biologic production, while agricultural biotech programs, such as Crop-XR for resilient crops, may stall, affecting global food security.

The duration of the caretaker government and the policies of the next administration will shape the biotech sector’s trajectory. While the EU’s proposed Biotech Act may offer some support, the Netherlands’ unique ecosystem faces a critical test. Industry leaders and stakeholders await clarity as the country navigates this crisis.

Targeted Investment Fuels Dutch Biotech Across Oncology, Sustainability, and Agri-Food Innovation

The Netherlands ranks sixth globally for biotech patents and contributes €7 billion to GDP, supporting 100,000 jobs, according to McKinsey estimates. Its strategic location, with Schiphol Airport serving over 300 destinations and the Port of Rotterdam facilitating global shipping, supports a robust biotech supply chain. 

Direct Impacts on Biotech: Funding, Regulation, and Talent

The government collapse threatens several aspects of the biotech industry:

• Funding and Investment: The €1.3 billion pledged for 2025–2040, including programs like Biotech Booster and CropXR, faces uncertainty. Venture capital, which reached €2.6 billion in 2021, may decline as investors adopt a cautious approach. “The biotech VCs operate across Europe, making it challenging for Dutch startups to secure funding,” said Ellen Smit of Rotterdam Square in January 2025. A caretaker government may prioritize short-term needs, delaying long-term biotech investments.
• Regulatory Stability: The EMA in Amsterdam oversees EU drug approvals, but political instability could disrupt its operations. Delays in approving therapies, such as uniQure’s gene treatments, could affect patients across Europe. The government’s plan for regulation-free test zones, praised by Wieteke Wouters of hollandbio, may stall, hindering innovation in gene therapies and immunotherapy.
• Talent Retention: The Netherlands’ biotech sector relies on a skilled workforce, supported by universities and vocational schools. Political uncertainty could drive researchers to stable hubs like Switzerland or the UK. Leiden Bio Science Park and Rotterdam Square risk reduced activity if funding and collaboration falter.

Indirect Impacts: Supply Chains, Collaboration, and Public Trust

The collapse could have broader repercussions:

• Supply Chain and Manufacturing: The Netherlands’ manufacturing capabilities, led by companies like HALIX and Thermo Fisher, are critical for global vaccine and biologic production. The $2.1 billion nutraceuticals market in 2023 relies on the country’s logistics infrastructure. Disruptions could prompt manufacturers to relocate, weakening Europe’s pharmaceutical autonomy, as highlighted during the COVID-19 pandemic.
• International Collaboration: The Netherlands’ role in European biotech networks could weaken, with competitors like Germany and Denmark potentially absorbing talent and investment. The country’s leadership in agricultural biotech, such as Crop-XR for climate-resilient crops, supports global food security but may falter without stable governance.
• Public Perception: Historical skepticism about GMOs, noted in 1999 Eurobarometer data, could resurface if the collapse is seen as mismanagement. Criticism from coalition partners, like VVD’s Dilan Yesilgoz calling Wilders’ move “super irresponsible,” may fuel public distrust, complicating acceptance of biotech innovations.

Healthcare Implications: Delays and Global Repercussions

The biotech sector’s challenges directly affect healthcare:

• Delays in Drug Approvals: EMA disruptions could delay approvals for therapies like immunotherapies and gene treatments, impacting patients with cancer, hemophilia, and rare diseases across Europe. The Netherlands’ regulatory flexibility, a key strength, may weaken under a caretaker government.
• Patient Access to Treatments: Slowdowns in innovation could delay access to life-saving therapies. For instance, ISA Pharmaceuticals’ immunotherapy research may face funding hurdles, limiting treatment options for Dutch and European patients.
• Global Health Security: The Netherlands’ role in vaccine production, demonstrated during COVID-19, is vital for global health. Disruptions at facilities like BioConnection could affect supply chains, with implications for pandemics and routine healthcare.

Looking Ahead: A Test for Biotech Resilience

The caretaker government faces the challenge of maintaining biotech momentum amid political uncertainty. Elections, likely in October 2025, and coalition negotiations could prolong instability. Polls suggest Wilders’ PVV may remain influential but struggle to form a coalition. The PVV’s focus on immigration and skepticism of climate policies, raises concerns about future biotech support.

The EU’s proposed Biotech Act may mitigate some impacts by redirecting resources, but the Netherlands’ unique ecosystem—marked by connectivity and collaboration—faces a critical test. Industry leaders like Annemiek Verkamman of hollandbio emphasize the sector’s resilience, built over decades, but warn of challenges like talent migration and regulatory fragmentation.

As the Netherlands prepares for the NATO summit in The Hague, the biotech industry awaits clarity. The crisis’s resolution will determine whether the country maintains its position as a global biotech leader, with implications for healthcare, agriculture, and innovation worldwide.

Author

Bernice Lottering

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