Brexit has made hundreds of Dutch companies vulnerable and some will fail as a result of Britain pulling out of the EU, according to trade insurer Euler Hermes.

Euler Hermes said demand would fall and investments will be stalled as a result of Brexit, news website Nu.nl reported. A decline in sales because of an unfavourable sterling/euro exchange rate will also play a role.

A good relationship with Britain is far more important for the Netherlands than it is for most other EU countries, the report said.

‘The Netherlands must prepare itself for considerable damage from Brexit. There is a good chance that the unfavourable aspects will be larger than anticipated,’ Euler Hermes said. The company said the effects will be evident by the end of 2017.

The Dutch business sector earlier warned that Brexit will cost jobs. Employers organisations VNO-NCW and MKB-Nederland say that trade with Britain is worth billions of euros and at least 200,000 jobs.