UPDATE DUTCH POLITICS: four parties reach agreement to form right-wing government

A new cabinet – including Geert Wilders’ PVV/Freedom Party – aims for mid-June inauguration

In a historic turn of events, Geert Wilders’ PVV/Freedom Party secured a shocking victory in the elections on 22 November last year. Now, four parties have forged an outline agreement to form a new right-wing Cabinet. The coalition – comprising PVV/Freedom Party, VVD/Liberal Conservatives, NSC/Social Conservatives, and BBB/Farmer’s Party – plans to establish a new government by mid-June.

The outline agreement, unveiled last night, includes several bold measures:

• Tax relief from 2025: targeted at hardworking Dutch citizens, middle-income earners, entrepreneurs, and those facing financial hardship.
• Strict asylum and migration Control: implementing the toughest asylum admission regime and the most comprehensive migration control package in Dutch history.
• Major investments in infrastructure: a substantial push in housing, infrastructure, accessibility, and energy transition.
• Healthcare reforms: more than halving the healthcare deductible to 165 euros by 2027 and increasing investments in elderly care.
• Agricultural and fisheries support: strengthening ownership in these sectors to ensure food security and future prosperity.
• Electoral and judicial reforms: enhancing citizen control through a reformed electoral system and establishing a constitutional court to safeguard fundamental rights.
• Public safety: a firm approach to combating crime and terrorism to ensure the safety of Dutch citizens.

Based on this, the new cabinet will work on a coalition program focussed on 10 main points:

1. Livelihood security and purchasing power
2. Control over asylum and migration
3. Inclusive infrastructure development: housing, public housing, public transportation, and aviation, ensuring all regions are included.
4. Sustainable agriculture and fisheries: ensuring food security and protecting nature.
5. Energy security and climate adaptation
6. Accessible public services: focus on healthcare and education.
7. Good governance and rule of law
8. National security
9. International security
10. Economic growth and business climate

Focus on economic growth

The agreement says that “Companies must want to locate and stay in the Netherlands. Our priority is enhancing the earning capacity of the nation”, which includes several measures:

• Reversing recent tax increases: partially reversing recent tax hikes for entrepreneurs and reducing energy taxes.
• Reducing regulatory burden: addressed by the Advisory Committee on Regulatory Burden Assessment and involving implementing agencies in policy development.
• Energy transition support: helping companies navigate the energy transition and resolving grid congestion.
• Talent and innovation: prioritizing the availability of talent, strengthening the knowledge economy, and improving digital infrastructure.
• Competitive energy costs: ensuring energy costs for businesses and consumers remain competitive with neighboring countries.
• Streamlining European Policy: avoiding new national measures that increase regulatory burdens and removing existing ones where possible.
• Supporting small business owners: legislation will consider the impact on small businesses to ensure continued hiring and growth.
• Strengthening InvestNL: boosting this vehicle for investment in innovation and economic potential.

Next steps

None of the four faction leaders will take a seat in the cabinet, and the intended Prime Minister will be recruited from outside these parties. Many believe that Ronald Plasterk – former minister and social democrat (!) – is the top candidate.

• May 22: The House of Representatives will debate the final report of the informateurs and the outline agreement. Motions can be submitted during this debate.
• New Formateur: Former informateur Van Zwol will be proposed as formateur during the debate. In consultation with PVV, BBB, VVD, and NSC, he will determine the number of ministerial and state secretary positions and recruit new officials.

Timeline

• Duration: formateur Van Zwol expects the process to take four to five weeks.
• Mid-June: a new Cabinet is expected to be sworn in by mid-June.

Development of government program

The new Cabinet will further develop the outline agreement into a comprehensive government program with concrete measures.

Hearings for transparency

A new element in the formation process is the organization of parliamentary hearings with the intended Cabinet members. These hearings will serve as introductions and promote transparency, as the House of Representatives does not have the authority to reject a candidate official.