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Netherlands minority cabinet faces budget deadlock

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2026-09-25 20:46 UTC → 2026-09-29 18:13 UTC · added ~~removed~~

The minority Jetten cabinet, composed of D66, VVD, and CDA, has finalized its 2027 budget following the traditional Prinsjesdag opening of the parliamentary year. During his Speech from the Throne, King Willem-Alexander emphasized the necessity of cooperation to address long-term challenges like nitrogen, housing, and migration, while cautioning against “excessive debt to future generations” and extreme polarization. To mitigate a projected 0.1 percent drop in average purchasing power, the government proposed €1.5 billion in support measures, including a €173 increase in the labor tax credit and tax reductions for seniors and low-income households. The budget also includes €1.5 billion for infrastructure and €1.3 billion for CO2 storage projects. To secure support, the cabinet scrapped planned multi-billion euro cuts to social security, canceled a planned reduction of the maximum daily wage, and postponed changes to unemployment benefits (WW) by one year. ~~Parliamentary~~ Parlamentary debates have highlighted significant deadlock. Opposition leaders from Pro, JA21, and SGP have demanded a clear political direction, while PVV leader Geert Wilders criticized the pursuit of piecemeal agreements as “chaos in the chaos.” In an effort to build a ~~recent development, the~~ majority, opposition parties PRO and Volt announced they ~~will~~ would negotiate jointly with the cabinet, focusing on purchasing power, social security, and wealth taxation. The cabinet has also invited ChristenUnie, SGP, and JA21 to ~~discuss potential support~~ participate in discussions. In response to the need for broader support, the ~~2027 budget. Party leaders Jesse Klaver and Laurens Dassen intend~~ cabinet submitted an amended budget proposal. Key concessions include canceling planned cuts to ~~meet with Prime Minister Rob Jetten~~ disability and ~~Finance Minister Eelco Heinen. The parties claim their combined support would provide~~ unemployment benefits for the ~~minority government with~~ current year and proposing a ~~stable majority~~ €2.1 billion reduction in ~~both the House of Representatives and~~ fuel excise duties. Additionally, the ~~Senate, focusing on themes of purchasing power, social security, and~~ government plans to transition ‘Box 3’ wealth ~~taxation.~~ taxation from theoretical to actual distributed profits starting in 2028, partially funded by a temporary reduction in the Box 2 rate.

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