THE HAGUE (Realist English). The three-party minority coalition led by 38-year-old Rob Jetten, the youngest prime minister in Dutch history, has found itself on the brink of collapse less than nine months after its formation. The cause was a dispute over an amendment to the 2027 tax plan that shifts part of the tax burden from income to wealth.
What the amendment proposes
The agreement reached by D66 and CDA with the left opposition parties PRO and Volt introduces a new top rate of 38.5% for income from assets (the so-called “box 3” — tax on savings and investments) above €60,000 per year. For amounts below this threshold, the rate is reduced to 35.5%.
The amendment is expected to bring in about €1 billion, which will go towards lowering the income tax rate for low-income earners. Initially, the left opposition demanded €1.5 billion, but the amount was reduced during the compromise.
VVD reaction and parliamentary vote
The VVD party, represented in the coalition by Deputy Prime Minister Dylan Yesilgöz-Zegerius, called the deal a violation of the coalition agreement and demanded a “fundamental reset” of the talks. Despite objections, on the evening of 12 November the lower house of parliament approved the amendment by a one-vote margin with the votes of D66 and CDA. In response, VVD withdrew support for the entire tax plan, putting the minority government in a critical position.
VVD leader Ruben Brekelmans called the result “shocking” and said the party would “seriously reconsider” its position. “I will first consult with the party and the faction. I will not draw hasty conclusions,” NOS quoted him as saying.
Jetten’s attempt to save the coalition
Prime Minister Jetten, who cancelled a trip to the EU summit in Dublin to take part in the debates, said he would do everything possible to preserve the coalition and announced a meeting with the leaders of VVD and CDA on Friday, 13 November, to discuss a “new start”. “Relations between the three parties are difficult,” he admitted, but stressed his commitment to a “serious new beginning”.
Fourth elections in five years?
If VVD leaves the coalition, Jetten’s government will fall, and the Netherlands could face its fourth elections in the last five years. However, on Tuesday parliament adopted a proposal according to which, in the event of the cabinet’s collapse, MPs must first discuss forming a new coalition based on the current composition of the lower house before calling new elections. Since 2000, only one Dutch cabinet has served a full four-year term.
The crisis in the Netherlands is not just a conflict over a tax rate but a clash of two visions of economic policy within one coalition. D66 and CDA, relying on the left opposition, tried to implement a redistributive agenda, while VVD defends the interests of business and investors.
It is telling that the amendment passed by a one-vote margin, and VVD learned of the deal “caught off guard” — this indicates a deep crisis of trust within the alliance. The key question is whether Jetten can persuade VVD to stay in the coalition after a public humiliation, or whether the Netherlands will again plunge into an election cycle that will only reproduce the current impasse.
