Netherlands minority government finalizes 2027 budget

The Dutch minority government, led by Prime Minister Rob Jetten and comprising D66, VVD, and CDA, has finalized its 2027 budget after intense negotiations. Finance Minister Eelco Heinen stated the budget was designed to appeal to a wide range of political factions to secure support from the opposition in the House of Representatives.

Key elements of the budget include the cancellation of planned cuts to the AOW pension and certain social security benefits, as well as a delay in increasing healthcare deductibles. The government has also allocated 1.5 billion euros to support education and research. To fund these measures, higher-income earners will face increased taxes, though wealth taxation (box 3) remains a point of contention.

Opposition leaders have expressed varying degrees of skepticism. Jesse Klaver of the PRO party criticized the plans, suggesting the government is avoiding difficult choices and merely postponing problems, particularly regarding wealth taxation. Additionally, real estate associations have warned that continued uncertainty regarding box 3 taxation could shrink the private rental market.