Netherlands minority cabinet scraps major social security cuts

The Dutch minority cabinet has largely removed planned multi-billion euro cuts to social security from its budget. Key measures, such as reductions in benefits and an accelerated increase in the state pension (AOW) age, have been scrapped. Other interventions, including the halving of the duration of unemployment benefits (WW), will be delayed by one year.

By canceling or postponing these cuts, the minority coalition aims to secure support from political parties such as PRO. The budget for next year also includes 1.5 billion euros allocated for purchasing power repair and 400 million euros for shingles vaccinations, a priority for the 50PLUS party.

Additional fiscal measures include a slower phase-out of fuel excise duties, costing 750 million euros, and a one-year delay in increasing the mandatory healthcare deductible by 60 euros. To offset costs, higher-income individuals will face increased taxes, expected to generate approximately 750 million euros, and a slight increase in water levies for all citizens. The cabinet is seeking further input from opposition parties and labor unions regarding funding for remaining unfinanced measures.