After 93 days of negotiations, parties reached an agreement for a new government coalition, finally setting a course for stable governance.
ALDE Party members D66 and VVD, alongside coalition partner CDA, have agreed to form a minority government. Titled “Getting Started”, the agreement echoes the core narrative of the D66 campaign as well as the main policy priorities of both D66 and VVD.
The coalition committed to “building a better Netherlands" by choosing collaboration over division - a clear response to growing fragmentation and polarisation in political spheres.
On Tuesday, the Dutch House of Representatives appointed D66 leader Rob Jetten as formateur of the new government and was tasked to distribute portfolios and select candidates for Ministerial posts.
What’s in the agreement?
Spanning defence, innovation, housing, education and migration, the agreement offers liberals a policy agenda that balances security with fiscal responsibility.
Security:
Against a backdrop of growing geopolitical uncertainty, security is a central priority. Defence spending will rise to 3.5% of GDP, with 19 billion EUR allocated and a scale up of the armed forces to 122,000 soldiers.
Citizens and businesses will support this security expansion through a “freedom contribution” tax. The government has justified the move by pointing to increased hybrid threats, digital attacks, espionage and rising international tensions
Economy:
Targeted public investment will focus on digital innovation, AI, offshore wind, green hydrogen and small nuclear reactors. By supporting innovation in these sectors, the coalition aims to position the Netherlands as a leader in digital and green technologies.
Housing:
Affordable housing remains a big priority, with plans from 2029 to allocate 1 billion EUR annually to the construction of affordable homes, with the goal of easing pressure across the housing market.
Education:
Previous plans to cut education funding are now shelved, with the coalition deciding to increase the education budget, to help retain teachers and boost the education system.
Migration:
The coalition vows to take immediate and significant steps on asylum policy. Additional funding will be directed towards asylum processing and social integration to modernise the system. Tougher approaches will be taken towards criminal asylum seekers.
Fiscal and social:
To balance increased spending on defence, innovation, housing and education, this minority government believes that cuts will need to be introduced in certain areas of social spending, in negotiation with the opposition parties.
From 2033, the state pension age will need to rise in line with life expectancy. Unemployment benefits will be reduced from two years to one, and free domestic caretakers will be withdrawn for individuals with sufficient income.
The government is set to be officially presented to the King on Monday, 23 February, with a vote in Parliament following quickly afterwards.