PM Jetten: “Serious fresh start” better than Cabinet collapse amid coalition turmoil

Prime Minister Rob Jetten wants to keep the current three-party coalition intact. During Thursday's parliamentary debate, he was asked whether the Cabinet could continue without ministers from the VVD, but Jetten made clear that this was not an option for him. Regardless of the outcome of the votes on the Tax Plan, the coalition will have to “make a very serious fresh start together,” Jetten said.

He said he would take the initiative to make this happen in the coming days, adding that any follow-up talks should focus on “how these three parties can improve their cooperation in the Cabinet and coalition, while also taking a very serious look at how they can better navigate the different majorities in the Tweede Kamer.” The Tweede Kamer is the lower house of Dutch parliament.

D66, VVD, and CDA have spent weeks negotiating the Tax Plan without reaching an agreement. Jetten acknowledged that the prolonged dispute had damaged relations between the coalition partners and undermined trust in both the coalition and the Cabinet. “That is crystal clear,” he said.

Jetten said the talks should address problems in relations between the coalition partners and ways to improve their dealings with Parliament. “That requires reflection on cooperation within the Cabinet and the coalition, and on how a minority government can engage effectively with Parliament.”

The VVD is unhappy with the deal struck by D66 and CDA with PRO and Volt. The party is calling for a fundamental overhaul of the minority government. Parliamentary party leader Ruben Brekelmans told the Prime Minister that his proposed fresh start was “a somewhat more euphemistic way of putting it.” If the Tax Plan is rejected, Brekelmans said, “a fresh start” alone would not be enough.

The VVD's Brekelmans called for the votes to be delayed if Parliament appears set to reject the Tax Plan following the adoption of an amendment by PRO and Volt. Earlier on Thursday, he said he would oppose the Tax Plan if the left-wing parties' proposed changes were approved.

Brekelmans asked whether Jetten would call for the votes to be postponed in that situation “so that he can take the lead over the coming days and work towards a solution.” Jetten replied: “I want to do everything I can to find a solution together.” He said he would decide how to proceed after the vote on the amendments.

D66 and CDA support the amendment and want Parliament to approve the Tax Plan in its revised form. SP leader Jimmy Dijk asked Jetten whether it would constitute a government crisis if a coalition party voted against the Tax Plan. “It is an unprecedented situation, one that has never occurred in all the years I have been working here in The Hague,” the Prime Minister replied, without using the word “crisis.”

Jetten said talks on the coalition's future could result in changes to the agreements reached by D66, VVD, and CDA. While the discussions should address how the parties cooperate, he said they could also lead to changes in the coalition's policy plans.

Until last Tuesday, Jetten believed there was “no significant progress to be made” with the parties in the right-wing alliance. He made this assessment “based on the feedback we received from the 3 coalition parliamentary groups.”

Jetten said the coalition had made considerable efforts to find common ground with JA21, SGP, and BBB. “We looked at every possible option until the very last moment,” he said. Talks with JA21 focused on migration, while BBB sought greater flexibility in the Netherlands' nitrogen policy.

Before Jetten spoke, the Cabinet sent a statement to Parliament saying the compromise amendment is still lacking some crucial details, and encouraged the Tweede Kamer to shoot down the D66, CDA, PRO, and Volt tax plan. The advice was not for political reasons, but rather because the €400 million expected income from the proposal’s approach to tax avoidance is largely unspecified.

At the same time, it represents about 40 percent of the amount the compromise tax deal expects to raise in revenue, according to the memo from Finance State Secretary Eelco Eerenberg (D66). Further, the additional income from taxing wealthy households’ earnings from investments and assets, including a Millionaire’s Tax, will not likely take effect until 2029.

However, the Cabinet wants to cut taxes and cost of living burdens for working class households from 2027. This prompted questions from the Cabinet about how to handle the shortfall for the time being.

It is customary for the Cabinet to provide motions and amendments with their own assessment, written by a Cabinet member. These typically state whether a a proposal is consistent with Cabinet policy, if there are financial hurdles, and the complexity for implementation. The assessments are non-binding, and coalition parties and opposition parties are free to disregard the advice.