Wilders blows up coalition
Geert Wilders has managed to put the subject back on the political agenda with his desired asylum measures. VVD, NSC and BBB spoke with Wilders on Monday evening, 2 June, about his list of demands. Wilders presented a plan at a press conference with which he wanted to take additional measures in the area of asylum reception. According to Wilders, things were not going fast enough. His ten-point plan included closing the borders to asylum seekers, expelling status holders from asylum seekers’ centres and putting a stop to family reunification.
Wilders tried to increase the pressure further via X. If a “majority” of his proposals were not met, the PVV would leave the coalition . Similar words had already been said at the press conference, although Wilders backed down shortly afterwards and said he “was not threatening anything”. The assembled press stood at the exit of the meeting room for hours waiting for an explanation, but Wilders let his coalition partners sleep on it for another night before deciding what he would do. But it does not look good, he stated several times.
He has not yet seen a signature, he said. Wilders announced his departure on Tuesday morning, June 3, 2025 at 09:15 on X with the message “No signature for our asylum plans. No adjustment to the main points agreement . PVV leaves the coalition”. On June 3, Prime Minister Schoof then offered the resignation of the cabinet to the King at 16:00 at Huis ten Bosch Palace in The Hague. A caretaker cabinet will now continue to settle current affairs until a new cabinet takes office, after national elections will be held in October or November.
Minister Klever of the PVV was immediately replaced by Minister Veldkamp (NSC). In addition to being Minister of Foreign Affairs, Minister Veldkamp is now also Minister of Foreign Trade and Development Aid. Minister Dirk Beljaarts (Economic Affairs) was replaced by Minister Eelco Heinen (Finance, VVD). Minister Sophie Hermans (Climate and Green Growth, VVD) temporarily replaced Minister Barry Madlener and State Secretary Chris Jansen (both Infrastructure and Water Management).
Minister David van Weel (Justice and Security, VVD) will temporarily take over the tasks of Marjolein Faber (Asylum) and State Secretary Ingrid Coenradie (Justice and Security). Judith Uitermark (Home Affairs, NSC) will replace her State Secretary Zsolt Szabó. Caspar Veldkamp (Foreign Affairs) will replace Reinette Klever (Development Aid). On Wednesday 4 June, the Lower House debated the fall of the Schoof cabinet. The VVD has ruled out cooperation with Geert Wilders’ PVV in a possible next coalition. VVD leader Dilan Yesilgöz calls Wilders ‘completely unreliable’. ‘He will never take responsibility for the country, it will lead nowhere’, she stated.
VVD minister David van Weel is now also temporarily responsible for: asylum procedure and aliens (IND), asylum emergency measures law, alien detention, border control and criminalisation of failure to cooperate in return.
NSC Minister Eddy van Hijum will temporarily be responsible for: labor and study migration, Return and Departure Service, international agreements with countries of origin, EU migration.
BBB Minister Mona Keijzer of Housing and Spatial Planning will temporarily have authority at the Ministry of Asylum over: COA and reception policy, municipal housing, Ukrainians, dual status system (family reunification), distribution law, abolition of task assignment and priority for status holders.
There is also an agreement on the distribution of the other ministerial posts of the PVV. All three parties will receive an additional ministerial post: Economic Affairs goes to the VVD, Public Health to NSC and Infrastructure and Water Management to BBB
There was a long discussion about whether it was wise to split it into three parts, because it would also split up the handling of the new asylum laws. It was agreed that the dual status system would fall under Mona Keijzer and the Asylum Emergency Measures Act under Van Weel. In the Lower House, the two important asylum laws were on the agenda of 26 June 2025. On 3 July, the day before the Lower House recess, a majority voted because of the adjustments for the bills. For SGP and NSC, the nuance of the criminalisation of helping illegal immigrants was decisive. Two proposals that the PVV wanted to implement to further tighten the new asylum law were previously rejected by the Lower House. These were plans to have asylum seekers sign a declaration against Sharia, Islamic customary law, upon arrival and to withdraw the Distribution Act more quickly. There was sufficient support for the PVV’s amendment to criminalise illegal residence in the Netherlands.
The Dutch House of Representatives elections will be held on Wednesday, October 29, 2025.
New elections
GroenLinks and PvdA will merge next year to form a new party with a new name. The members of both parties decided this in a referendum. Of the PvdA members, 88 percent voted in favor, as did 89 percent of the GroenLinks members.
Last week, members were able to vote online on the merger. Now that the vote has been cast, the process of establishing a new joint party will begin. In 2026, the party boards will then come up with a proposal for a party name, new statutes, and an organizational structure. The members will then be able to vote on this. The new party will therefore not be formed before the upcoming Second Chamber elections. However, in last week’s online referendum, members did agree to the two parties participating together on October 29. Some 95 percent of GroenLinks members voted in favor, compared to almost 94 percent of PvdA members.
This means that GroenLinks and PvdA have one joint election program and one electoral list. In 2023, GroenLinks and PvdA also participated in the Chamber elections together, led by Frans Timmermans. That gave the parties together 25 seats, a gain of eight.
It is expected that Timmermans will once again become the party leader in the upcoming parliamentary elections. He would like that, but it is not yet formally a foregone conclusion. According to the party regulations, other candidates can also apply.
The joint line of the two parties was formulated as follows in the announcement of the referendum: “We believe in the power of solidarity, in the power of being stronger together. Because together we can ensure affordable housing, good facilities, fair wages, and a green future in a safe Netherlands.” In recent months, Timmermans has advocated, among other things, a salary increase for 8 million Dutch people and a ‘new welfare state’.
Not all members of GL and the PvdA are cheering a merger of the parties. There is resistance, especially from the PvdA. A small group of prominent people, including former Speaker of the House Verbeet and former party leader Melkert, have united in the group Rood Vooruit to prevent a merger. They are afraid that the social democratic principles of the PvdA will disappear.
Another critical group is LinksBoven, which includes a few hundred members of both parties who fear that a merger will be at the expense of the left-wing voice.
Spring Memorandum
PVV, VVD, NSC and BBB reached an agreement on the spring memorandum a month and a half earlier on 16 April after more than 24 hours of negotiations. After ten days of consultation, eight of which were actual negotiations, more money went to Defence (1.1 billion euros), rents for social housing in 2025 and 2026 would be frozen, VAT would not be increased and energy tax would be reduced. This reduction in electricity would be offset by a higher tax on gas. The tax on electricity would be reduced by 1.24 cents per kilowatt hour, while that on gas would increase by 2.5 cents per cubic metre. The fixed amount that is deducted from energy tax each year would also increase by 5 euros per year. Part of the 200 million that is needed annually for this would be taken from the climate fund.
There will also be extra money for childcare, but it will not be free for the time being. In 2026, the rent allowance will increase once, which will cost the government 1 billion euros. The PVV calls it a ‘grocery bonus’. Extra money will be made available for social advocacy and for farmers, to soften nitrogen measures. This money will also most likely be taken from the climate fund. The higher excise duty on alcohol and VAT on dairy will be reversed. Extra billions will also be made available for the municipal fund and the municipalities will receive an extra three billion for two years.
Next year, the link between development aid and the economy will also be restored. As a result, Minister Reinette Klever (Foreign Trade and Development Aid, PVV) received several tens of millions of euros extra in 2026. The government will provide TenneT Nederland with financing guarantees to solve the grid congestion. The government has opted for private financing, an IPO or a private issue of shares. 183.4 million euros were set aside for the NATO summit in The Hague. An amount of at least 95 million euros was previously mentioned.
Four ministries are providing extra money because of the summit. Justice and Security is contributing 81.7 million euros, Home Affairs 53 million, Defence 42.6 million and Infrastructure and Water Management 6.1 million. The trade association for debt counsellors NVVK recently discovered in the spring memorandum that the money tap will be turned off in 2029. This means that from that year onwards there will be no more structural extra money for the approach to helping people with debts. Of course, the extras are also offset by cutbacks, such as an increase in health insurance premiums by an average of 199 euros per person per year and a non-indexation of the levy and labour discounts and the budgets of the ministries. and in healthcare, another 600 million euros will be cut in 2026. The coalition is largely postponing the nitrogen problem, the climate targets and the asylum chain, and money reserved for the Lelylijn is being re-allocated for the Nedersaksenlijn and a road widening in Twente. Finally, there will also be interventions on unemployment benefits. These will now only last for a maximum of 18 months. Deputy Prime Minister and Minister of Social Affairs Eddy van Hijum (NSC) wanted to take into account people who do not get a new job so quickly, such as the elderly, and threatened to resign. As a consolation, he received extra money for mitigating measures, such as retraining.
There were no further negotiations on immigration and asylum policy, but on May 26, 2025, Wilders suddenly decided to hold a press conference on his own with additional asylum measures that he wanted. Wilders wanted to break open the coalition agreement and quickly demanded additional and stricter asylum and immigration measures. He finds it unacceptable that another 100,000 migrants have arrived this year. He wanted to close the borders to all asylum seekers within a few weeks. In his opinion, all Syrians in the Netherlands must also return to their country and asylum centers must close. If the cabinet did not get this on track within a few weeks, a cabinet crisis was looming. He had 10 demands:
- Borders closed for asylum seekers
- More border control, with help from the army
- Temporary freeze on family reunification
- Status holders are being evicted from asylum centres to make room. They have to sleep with family, compatriots or others
- Syrians with a temporary residence permit must return to their own country within six months at the latest, if necessary by force
- No more asylum centers, but a number of them are closing
- Two laws still have to be submitted to the Council of State before the summer: the distribution law and the bill that will prohibit priority for status holders in social housing
- Foreigners who have been convicted lose their residence status and must leave the country
- People with dual nationality who are convicted of a violent or sexual offence will have their Dutch nationality taken away and will be deported from the country
- Police must be able to intervene more quickly in demonstrations and public disturbances
Budget Memorandum
On September 17, 2024, the budget was presented to the House of Representatives on Budget Day. Although everyone would see a slight improvement in 2025, this is less than was promised . The average Dutch person only saw an improvement of 0.7 percent. People on benefits saw an improvement of 0.9 percent. This is a lot lower than previously assumed (2.1 percent) and does not outweigh the sky-high inflation of 3.7%. The minimal progress has been undone again with the spring budget. The average inflation rate in the Netherlands is now well above the European average.
More and more Dutch people are doing their shopping abroad and filling up their tanks there as well. Government expenditure in 2024 was 12 billion euros higher than income. The debt amounted to 492 billion euros at the end of 2024, which is 1.1 percent of the gross domestic product (GDP). The Netherlands is in a good financial position. Despite a slight contraction in the first quarter, the Dutch economy grew by 1.0% in 2024. The growth was stronger than expected and that had a positive effect on government finances. The budget deficit for 2024 has been set at ‒0.9% of the gross domestic product (GDP). This is evident from the 2024 Financial Annual Report of the Central Government, the year in which the Schoof cabinet took office at the beginning of the summer.
The Netherlands’ budget deficit is expected to reach 2.3 percent of GDP in 2024, while the national debt is expected to reach 47.3 percent of GDP. The budget deficit is expected to increase to 3.3 percent in 2028 and to reach 4.6 percent for 2029 to 2032. The EMU debt in 2023 was 480.7 billion euros, or 46.5% of GDP. In the medium term, Dutch government finances will deteriorate further, partly due to an increase in ageing-sensitive expenditure on healthcare and AOW, among other things, and the continuing influx of immigrants.
The EMU debt in 2023 was 480.7 billion euros, or 46.5% of GDP. In the medium term, Dutch government finances will deteriorate further, partly due to an increase in age-sensitive expenditure on healthcare and AOW, among other things, and the continuing influx of immigrants and the additional expenditure on defence and NATO. The European Commission has assessed whether government expenditure is in line with the new budget rules for 22 Member States. The Netherlands is the only country with which the Commission does not agree.
Incidentally, the budget deficit is actually 3.7% of GDP, mainly due to the conversion of budget-financed military pensions to capital coverage (financing). This results in a one-off cost item of 8.5 billion euros. For 2026, the CPB expected the deficit to be 1.8 percent of gross domestic product (GDP), which has now been adjusted to 2.3 percent.
Due to the increased interest rates, the Netherlands also has to pay billions more per year on the national debt. Major policy changes are needed to prevent the budget deficit of more than 5 billion euros from rising above the European standard, but the extreme expenditure on defense and the influx of asylum seekers prevent this. Defense spent around 2.4 billion euros more last year than the year before. Additional costs are added now that the warship Zr.Ms. Tromp has been deployed in the Red Sea to contribute to safe and free passage there. Defense will launch 4 SAR satellites (Synthetic Aperture Radar) in the coming 1.5 years. The costs for the four satellites, which will last for 5 years, are estimated at around 50 million euros. The first was launched on June 23, 2025 at 23:26.
In addition, the Joint Logistic Support Ship Zr.Ms. Karel Doorman was in the area for four months with 250 crew members. For 2024, the total expenditure for Defense amounts to 21.4 billion. This leaves less money for healthcare, education and welfare. The cabinet therefore wanted to cut around 2 billion euros in education in the coming years. However, these plans will most likely not pass the Senate, so the plans will largely be reversed. 748 million euros have already been reversed after intervention by CDA, ChristenUnie, SGP and JA21.
The long-term study fine was reversed, as were a large part of the cuts to social service time. The intended cuts to religious education and investments in scientific research have also been reduced. The cover comes from a subsidy pot for the further training and retraining of medical specialists, unused budgets for the public transport card for students and tax on e-cigarettes. Money also comes from the central government itself: with the exception of Defence, all ministries have to make a little extra cut on the costs they incur.
The cabinet also decided to invest an additional 716 million euros in further strengthening defence. The amount is in addition to the investments of €2.4 billion from the Main Lines Agreement and the Defence Memorandum 2024. The Senate also has strong criticism of the 2025 education budget and doubts the legitimacy of the cuts (approximately 500 million euros) in universities and science.
This is seen as a possible breach of contract, as the 2022 administrative agreement (with promised investments of 650 million euros per year) seems to be unilaterally broken open. UNL has considered legal action because of this breach of agreements. The vote on the budget is scheduled for April 8, 2025 and legal action by UNL is imminent. There is a good chance that the judge will decide that the administrative agreement is legally binding.
In 2024, the government spent €11.3 billion on the Foreign Affairs portfolio and €3.9 billion on the Foreign Trade and Development Aid portfolio. The focus of expenditure was on promoting international stability and security, stimulating trade and getting a grip on migration. On the third Wednesday in May, Accountability Day, the government accounts for what it spent money on in the past year.
In 2024, the Netherlands continued to be committed to security. The Netherlands actively participated in NATO missions and operations inside and outside NATO territory. The Netherlands also continued to support Ukraine unabated, militarily, for example by supplying F-16s, and financially with €566 million. Of this, €218 million is for the EU Ukraine Facility, where EU aid is pooled, and €58 million to the World Bank’s Ukraine Relief, Recovery, Reconstruction and Reform Trust Fund for reconstruction projects of Ukrainian infrastructure. For example, the Netherlands is paying for repairs to the electricity grid, roads, bridges, schools and hospitals.
Food security and water
The Netherlands also continued to focus on food security and access to clean water. Thanks in part to Dutch aid, 3.6 million people gained access to improved water sources and 6.4 million people gained access to sanitation facilities such as toilets. The target for 2024 has thus been largely achieved. Thanks to programmes by Aqua for All and FINISH Mondial, it was possible to realise many more private investments in the water sector with Dutch support.
The Netherlands also ensured that more than 1 million people were structurally reached with information to improve their diet.
Due to a number of crises in the world, the Netherlands increased its financial contributions to emergency aid to a total of €609 million. This also includes an additional contribution of €44 million for aid in acute crises, such as in Gaza and Sudan.
Contribution to the European Union
The new cabinet has focused on realizing Dutch interests in the European Union in the areas of asylum and migration, agricultural policy and EU budget negotiations. The cabinet also wants to play an active role in European decision-making in order to increase the influence of the Netherlands. EU membership directly contributes to the prosperity, freedom and security of Dutch citizens and companies. Membership entails financial obligations, which amounted to €7.2 billion net in 2024.
The European Investment Bank financed €2.1 billion in loans across sixteen projects in 2023. In addition, the European Investment Fund (EIF) financed €548 million in equity and guarantees to support SMEs.
Immigration and asylum
The coalition did not get permission in the Senate for an emergency law to stem the influx of asylum seekers . Wilders repeatedly stated that he would stick to an emergency law and said that otherwise the Cabinet would have a problem. On October 20, however, this plan of Wilders was also put on hold and, under pressure, he opted for a much slower “emergency law” instead of an emergency law. Schoof had previously been unwilling to start a plan “B” on a permanent basis, but like Wilders, he also changed his mind. The Cabinet refused to share the note with legal advice on the use of the emergency right of asylum with the House of Representatives.
The emergency law was also thwarted. The Dutch Bar Association thought the pressure was becoming too high, which would jeopardise the right to have a say. The rule of law was already at stake on nine points and now the process is also failing. However, the “State emergency law” has been definitively taken off the table. In the meantime, the Council of State has, as expected, given a negative opinion on the asylum measures. Wilders does not intend to pay any attention to this and to make concessions. ‘After we agreed to amend the Emergency Act included in the Main Lines Agreement, our patience has now run out’, he says. He also emphasises that the advice of the Council of State is ‘ only an opinion ‘. He wants ’these strict asylum laws to be implemented quickly and unchanged, because otherwise he will blow up the cabinet and leave. Minister Marjolein Faber iwa went to the Council of Ministers with her plans and her plans are now before the Lower House via her successor(s). There will be no transitional law and, as far as Faber is concerned, the laws had to come into effect immediately. Little has been changed in the final package. However, the spring memorandum had to release 115 million euros for implementation. For example, the agency that processes asylum applications, the IND, will receive more money.
- Abolishing asylum permits for an indefinite period (max. three years);
- Fixed-term permits will only be valid for 3 years instead of five years;
- The government wants to set up modest transition locations for housing status holders;
- Family reunification and subsequent travel of adult children and unmarried partners will become impossible;
- The distribution law may be withdrawn this year;
- Convicted undesirable aliens can be deported more quickly;
- To detain additional cells for rejected asylum seekers and illegal immigrants until deportation;
- In the future, status holders will no longer be given priority for a house;
- From the end of November, border controls will be introduced to deny asylum applicants who already have an application pending elsewhere;
- The legal task of status holders for municipalities will disappear;
- Syrian asylum seekers in safe areas will no longer receive permits and must return if possible;
- Temporary permits for Syrians from safe areas are revoked;
Not all measures could be taken yet, but parts had to go to the Council of State for urgent advice and went via the Council of Ministers to the House of Representatives and Senate. This could take months, possibly be adjusted or cancelled altogether. In addition, there is already a lot of criticism of the proposed plans from all sides, the Association of Aldermen finds the plans indigestible and VNG believes that the Government is creating chaos. In the meantime, Faber refused to agree to a ribbon for voluntary COA employees and was forced by the House of Representatives to apologize for this on April 2.
The urgent advice concerned two of her three asylum laws. It concerns the Asylum Emergency Measures Act, which means that asylum seekers will not be able to obtain a permanent residence permit, but only a temporary one. This term will also be shortened from five to three years and the other law regulates the dual status system: asylum seekers will be divided into two categories: A for risk of persecution due to religion, political views or orientation and B for war refugees. The latter category will have fewer rights. Advice will only be given later on a third law, which obliges rejected asylum seekers to cooperate in their return. D’66 wanted a postponement of the law for a dual status system until June 2026. Bontenbal fears that the Immigration and Naturalization Service (IND) will come to a standstill if this law comes into effect first and the European Migration Pact is introduced later. That is why he wants the pact and the law to be implemented simultaneously, in June 2026. His amendment to this was rejected to the satisfaction of PVV who now say they will vote in favour of the laws, especially now that an amendment was also adopted to criminalise illegal residence of aliens. D’66 will now vote against the two laws, especially because the new law also states that illegality will be punishable. NSC is also against criminalisation of illegality, but is in favour of the asylum emergency measures law as a whole. There does not seem to be a majority in the Senate for the asylum laws.
The Council of State (RvS) also sees little in Marjolein Faber’s asylum plans. According to the institute, almost all plans will only lead to asylum procedures taking longer and the work for civil servants becoming more difficult. ‘There will be a lot more litigation’, warns the chairman of the Administrative Law Division of the Council of State.
On November 22, 2023, there were new elections in which BBB put forward Mona Keijzer as future prime minister, D66 Rob Jetten and the VVD Dilan Yeşilgöz-Zegerius. Only Pieter Omtzigt did not yet come up with a potential prime minister. Geert Wilders with his PVV won the elections with a large majority of 37 seats but was not allowed to become prime minister. Seat distribution after elections: PVV: 37, Groenlinks-PvdA: 25, VVD: 24 and NSC: 20.
Ronald Plasterk
Ronald Plasterk was a member of parliament and minister from 2007 to 2017 and was appointed by Wilders as an explorer and later as an informant. The formation process stopped after more than two months on 6 February because Pieter Omtzigt unexpectedly left emotionally, after it became apparent that 21 (confidential) letters about the deplorable finances from the various ministries had been withheld by Plasterk for a week and were partly only shared with Omtzigt at the last moment. Plasterk already had a reputation in that area and during his term as minister decided, despite the high costs, to continue an ICT project of the government, after the Bureau ICT-toetsing (BIT) issued a very negative advisory report. The BIT assumed a further 33 months of delay and 50 million euros in additional costs. Three independent experts eventually convinced Plasterk to finally pull the plug on the project and hinted that Plasterk had been misleading the House of Representatives for years . The CPB also issued a warning a few weeks later about the expected financial shortages. Plasterk was nominated by Wilders as Prime Minister. Plasterk (professor) was also under investigation by the Amsterdam UMC (AUMC) after his company Frame Therapeutics had wrongly obtained the sole rights to patents for a cancer therapy with which he had earned millions of euros. In 2022, Plasterk sold his company to CureVac for 32 million euros, including the controversial patent applications. Plasterk was regarded as Judas in PvdA circles because of his help for Wilders. He had been a PvdA member since his student days. In the meantime, Amsterdam lawyer Henri Sarolea also filed a complaint against Plasterk, who according to him was guilty of economic crimes and forgery. Sarolea discovered that the annual accounts of Plasterk’s pharmaceutical company were incorrect. For example, Plasterk is said to have wrongly called his company Frame Therapeutics a micro-enterprise in 2022. This is beneficial for a company, because it then has less administrative burden. But there are conditions attached to this, such as a limitation of turnover and profit. Plasterk’s company allegedly did not meet these conditions. According to Sarolea, Plasterk is therefore guilty of an economic crime . Plasterk then dropped out and Wilders had to look for a new prime minister. Plasterk completed his work as an explorer in December 2023. The Public Prosecution Service dropped a report by lawyer Henri Sarolea who had filed a report against Plasterk. The Public Prosecution Service does forward the report to the Tax Authorities. Some annual accounts were indeed filed too late. The tax authorities can impose a fine for this or still initiate legal proceedings.
Formation
Omtzigt announced via app that he had left and would not return. On 10 January he had already indicated to PVV, VVD and BBB that he did not want to join a majority cabinet, because the ‘rule of law distance to the PVV would be too great’, but he later had no problems with that. The cabinet formation was therefore under pressure for some time. Especially because Omtzigt left after he gained insight into the deplorable state of government finances, which was then also acknowledged by the CPB and later denied again. He received an overview of expenses that were not specifically or as pm costs included in the budget. In addition to these high expected costs, the Dutch State also has to deal with substantial guarantees that have been issued to Ukraine and Greece . In order to gain more control over government finances, Omtzigt wants a special budget office to be set up, based on the American model, to monitor government income and expenditure. It was precisely because of the budgetary treatment that Omtzigt became emotional several times, cried and screamed and left the meeting several times to discuss matters within his own circle. The Council of State was also negative about the budget and reported that the cabinet is not analysing the major problems in the Netherlands and warns against ‘structural driving on the hard shoulder’. Omzigt did not just stay away from Budget Day. All the commotion led to Omtzigt deciding on 11 September to take a step back until 20 November. His tasks were taken over by Nicolien van Vroonhoven, but she will not compete with Wilders as party leader again in the new elections. Caretaker Minister Eddy van Hijum (Social Affairs) has announced himself as a candidate for the NSC list leader in the upcoming parliamentary elections. But if the NSC party board puts forward Diederik Boomsma as list leader in the parliamentary elections, Van Hijum will not oppose that. “In that case, I will not run for office”, the current caretaker Minister of Social Affairs has said. NSC is at zero to two seats in the polls. Omtzigt also had to resign from his work in 2021 for health reasons. In the run-up to the March 2021 elections – Omtzigt was still with the CDA at the time – he reported sick. He was elected to the House of Representatives, but only came to The Hague to get installed. He only resumed his work months later. Omtzigt was replaced at the time by newcomer Henri Bontenbal , now a successful CDA leader. Behind the scenes, attempts were already being made to plug the gaps for the spring memorandum and to limit the damage by selling Volksbank and ABN AMRO.
Pieter Omtzigt resigned on April 18, now that recovery from his burnout is not possible in the hectic current politics in The Hague. He chose to put his family and his health first “for the first time”. He said he would hand over the party chairmanship “full of confidence” to Nicolien van Vroonhoven.
PVV leader Wilders appointed Kim Putters as the new informant by motion as of 15 February 2024. The assignment for Putters, chairman of the Social and Economic Council and PvdA member, was to form an extra-parliamentary cabinet led by the 4 parties, in which none of the 4 parties would provide the prime minister. None of the participating parties wanted Geert Wilders as prime minister. Putters presented the official final report on 14 March. In the meantime, new elections were demanded by the population. The subject was immediately trending on X (Twitter). Elbert Dijkgraaf (SGP) and Richard van Zwol (CDA) became the new informants who had to discuss the content and a main agreement with the four parties. Wilders indicated that the time when he was going to give away was over. The CDA, PvdA/Groen Links, SP and D66 were slightly panicked about the positive progress for “Wilders 1” and tried to undermine the construction in the debate of 20 March and to play the 4 parties off against each other. They also agreed among themselves not to supply party members for a cabinet with Wilders and made themselves heard in the media. The AD blundered with a report that former VVD Minister of Finance and Health Hans Hoogervorst wanted to become Prime Minister, but another person had apparently pretended to be him.
In 2023, the Netherlands was once again one of the largest net contributors to the EU. In 2023, more than €3 billion more was paid to the EU than was received. However, the PVV no longer advocated for the Netherlands to leave the European Union. Earlier, his controversial anti-Islam bills, the emergency law, military support for Ukraine and his premiership were also put on hold. There appeared to be no financial room for his further plans, such as lowering the AOW age and abolishing the deductible for healthcare. In the meantime, BBB voted against increasing the minimum income and against the accelerated buyout of farmers in dire straits. On 15 May, after 175 days, a new extra-parliamentary cabinet was formed with PVV, VVD, NSC and BBB, including a main lines agreement and an austerity plan of around 17 billion euros.
Geert Wilders (PVV), Dilan Yesilgöz (VVD), Pieter Omtzigt (NSC) and Caroline van der Plas (BBB) concluded a programme outline agreement after 175 days of negotiations . Formateur Van Zwol then continued to form a cabinet. All candidates were screened and held interviews with candidate Prime Minister Schoof and formateur Van Zwol. Wilders’ choice of Schoof is strange. He is a good friend of Rutte and the choice was probably whispered to him by others. His views and choices differ very little from those of Rutte. Schoof also seems to have his own agenda, which in many cases deviates from Wilders’ original positions. Although Wilders’ influence on the cabinet is exceptionally great, Schoof and Wilders seem to tolerate each other. Schoof “is absolutely not the boss”, Wilders placed on X. He corrected Schoof, who had stated that.
The government now includes 21 water boards, 12 provinces, 342 municipalities, the UWV, the Social Insurance Bank (SVB) and the police. Private institutions with a government task, such as the Central Bureau for Driving Licences (CBR), also fall under government organisations. The Dutch government is then divided into 15 ministries :
Brief overview of plans and measures from the Government Agreement , based on the Main Lines Agreement :
- Purchasing power: everyone is slightly better off (0.8% on average)
- Waiting lists for mental health care must be eliminated, an additional 30 million euros per year will be available in 2025 and 2026
- Extra money for defense due to higher GDP. 750 million in 2025 and 500 million after that
- Expat scheme will remain in place, but will increase from 30 percent to 27 percent
- Taxation on the purchase of own shares will be abolished*
- Free school meals remain
- Cabinet reserves money for early retirement scheme
- Transfer tax for houses that the buyer will not live in himself reduced to 8%
- Schools are compensated for the VAT increase (60 million euros)
- The tax reduction for single earners will not be phased out
- The deduction of gifts in income tax will be reduced less drastically
- 130 million extra for border control
- The postponed cuts in healthcare will still be implemented by the new coalition
- The 4.5 billion in tax relief for 2025 will largely not go ahead
- Instead of 2.1%, benefits only increase by around 1 percent
- Discontinuation of funding for the reception of rejected asylum seekers
- The health insurance premium will increase by almost ten euros per month in 2025, the average will be around 156 euros
- An additional 280 million euros for the police
- 120 million to the AIVD, MIVD and NCTV
- No extra money for cell shortage, but change in punishment (house arrest)
- Family reunification of refugees is being restricted
- Additional money for buyouts or innovation of farms (the new broad termination scheme may be opened earlier than 2026, to avoid a cold restructuring)
- Livestock reduction of 2-25% (At least 30,000 employees are at risk of losing their jobs as a result, reports trade union CNV after an analysis)
- Asylum crisis is declared. (It turns out that officials have a negative advice about instituting an emergency law)
- Aliens Act limited by means of General Administrative Order exception provision Aliens Act 2000
- Opt-out request to Brussels in September
- 290,000 homes for the elderly in 2030
- Phasing out closed youth care
- Huge errors in estimation and choices regarding Corona
- Protecting young people from unhealthy products and vaping
- Allowance errors not immediately punished
- perspective for PAS reporters and steering on emissions again
- Easing and weakening energy transition measures
- Wind turbines at sea as much as possible
- Gas extraction only in smaller fields Groningen
- Housing construction faster, smarter and with fewer rules
- Transfer tax on houses not lived in by buyers themselves reduced by more than 2 percent from 10.4 to 8 percent.
- 7.5 billion for structural construction and accessibility of 100,000 homes per year
- Farmers/fishermen are given space to do business/innovate
- Benefit parents to be treated and completed by mid-2025, compensation no later than 2027
- 130 km on the A6 between Lelystad Noord and De Ketelbrug, the A7 on the Afsluitduik, the A7 between Zuidbroek and the German border and the A37 between Holsloot and Zwartemeer
- Cuts in education only for starting scientists and grants
- Animal rights are taken away when livestock farming is sold outside the family
- compulsory disability insurance for self-employed persons
- Enforcement of employment relationship for payroll taxes to combat bogus self-employment
- Employers may focus employee reintegration on finding another employer after a year of illness
- Additional IB rate, combined with a reduction in the rate in the first bracket
- Reduction of the general tax credit
- Simplification and linear reduction of the rent allowance
- Increase in child-related budget and rent allowance (11.50 euros)
- The health care allowance increases by 6.50 euros per month
- Deductible for healthcare will be reduced by more than half in 2027 (165 euros)*
- Phasing out of double general tax credit in social assistance frozen in 2025, 2026 and 2027
- Support for making homes more sustainable
- Subject to a reservation for 2025 and 2026 for an energy fund
- The tax on gas and electricity is going down. 37 euros less per year
- CJIB will send payment reminders before reminder costs are charged
- Improvement of debt assistance down to neighborhood level
- Replacement of childcare allowance with a new financing system The government is allocating 429 million euros to increase childcare allowance
- Improved and simplified WIA
- Simplification of the concept of partner in the AOW
- Better rules for amplified calls to prayer
- A bill is being introduced for a new electoral system for the House of Representatives
- A manure envoy is coming to market surplus manure
- Motor vehicle tax for electric cars not 40 but 25% discount
- Gambling tax to be increased from 29.5% to 30.5%
- Previously announced reduction in box 3 rate will not go ahead
- The netting scheme for small consumers will be terminated with effect from 1 January 2027*
- Premium aWf premium and Aof premium increases
- VAT on sports subscriptions, swimming lessons, gyms, but also sports competitions will increase from 9 to 21% (not going ahead)
- The general tax credit will be reduced by 335 euros
- Public broadcasting to be cut by 100 million euros
- Cutbacks on embassies and consulates
- Reduction of 300 million in development aid*
- Cut of 110 million euros in regional public transport in major cities
- Train ticket prices will increase by 6 percent
The government made 7.5 billion euros available to solve the housing crisis. At the Housing Summit on 11 December 2024, municipalities, home builders and investors and the minister came together to make plans to boost housing construction in the Netherlands. Making 100,000 homes accessible per year quickly encountered resistance from municipal pension funds. Pension funds saw no added value for their customers in terms of investment return and the Municipality wants more money first . According to Statistics Netherlands ( CBS) , the population of the Netherlands grew by almost 20,000 people to 17.97 million inhabitants in the first quarter of 2024, around 170,000 people die annually and around 45,000 immigrants are added each year. The Netherlands has around 430,000 companies, excluding the self-employed . However, despite this growth, the Dutch economy has deteriorated further. Dutch consumer confidence fell further in July. The tight labour market and the ageing population are putting pressure on education and healthcare. Elderly care already costs more than 18 billion euros per year and this will increase even more with all the immigration . In January, business investments already fell by 4.4 percent. Dutch exports have been falling by an average of 4% per month since June 2023, with an absolute peak of 7.5% in October 2023. The first quarter of 2024 showed a contraction of 0.5 percent compared to the previous quarter. International trade performed poorly in 2023, but also in the 1st quarter and 2nd quarter of 2024. Both exports and imports are shrinking. The volume of goods imports was already 4.2 percent smaller in February 2024 than in February 2023. This was mainly due to machinery and petroleum products. The sales prices of the Dutch industry were on average 0.9 percent lower in March than in March 2023. The production of the Dutch industry has been decreasing for nine months and in March it shrank by 6 percent compared to the same month in 2023. The turnover of this has now fallen for four quarters in a row, according to figures from Statistics Netherlands (CBS) . In the first quarter of this year, the turnover decreased by 5.5 percent compared to the same period last year. The turnover decreased the most abroad.Dutch goods exports did increase again in April. It was the first time in almost a year that exports grew. Turnover in the hotel and catering industry also grew in the first quarter of 2024 by 8.1 percent compared to the first quarter of 2023. However, the economic picture according to the CBS Business Cycle Clock was almost as negative in June as in May. In the June Business Cycle Clock, 11 of the 13 indicators performed worse than their long-term trend. The production of Dutch industry shrank by 3% in May, but Dutch goods exports also shrank again in May. The export of machinery, natural gas and petroleum products in particular is under pressure. Exports also shrank by 4.3 percent in June. Fewer means of transport were also exported than a year earlier. In May 2024, the volume of investments in tangible fixed assets was 6.8 percent smaller than a year earlier, due to lower investments in buildings, aircraft, passenger cars and machinery (including defence equipment). In 2023, there were 270 bankruptcies in the industrial sector. The highest number in five years. The deteriorating economy has had an impact on the labor market in the first nine months of 2024.
The reduction of the box 3 levy has been postponed by at least a year. The postponement costs the treasury 2.55 billion euros per year. The fictitious return is therefore increased and the tax-free amount is reduced to just over 52,000 euros. Previously, this was still 57,000 euros.
The Netherlands must pay an additional 697 million euros to the European Union in 2025. In the post-calculation, the GNI had to be adjusted upwards by 2.8%
Composition of the cabinet
In total, the Schoof cabinet consists of 29 ministers. 16 ministers, including Prime Minister Schoof, and 13 state secretaries. The candidate ministers of the new cabinet presented themselves to the House of Representatives in public hearings in June 2024. The new cabinet was sworn in on 2 July 2024 in the presence of the King at Huis ten Bosch Palace. On 10 September, all ministers of the Schoof cabinet and their partners came to a dinner in the Oranjezaal of Huis ten Bosch Palace to perpetuate the role of the King as a member of the government and the bond between the King and the cabinet. The King will give a speech during the dinner.
The PVV was given five ministries: the Ministry of Health (Fleur Agema, (deputy prime minister)), the Ministry of Asylum and Migration (Marjolein Faber), the Ministry of Economic Affairs and Climate ( Dirk Beljaarts ), the Ministry of Foreign Trade and Development Cooperation (Reinette Klever), the Ministry of Infrastructure and Water Management (Barry Madlener) and provides a State Secretary for Long-term and Social Care (Vicky Maeijer), for Health, for Kingdom Relations and for Digitization, for Public Transport (Chris Jansen), for Infrastructure and one for Justice and Security (Ingrid Coenradi) and one for Nature and Environment (unknown). Wilders chose top civil servant Dick Schoof (67) as prime minister. Until a few years ago, Schoof was a member of the PvdA for 30 years. Since March 1, 2020, Schoof has been Secretary General of the Ministry of Justice and Security. From 18 November 2018 to 1 May 2020 he was Director General of the General Intelligence and Security Service (AIVD) and from 1 March 2013 to 18 November 2018 he was National Coordinator for Counterterrorism and Security (NCTV). This prime ministerial candidate has also been the subject of comments and objections by other parties and he is said to be known for seeking out and overstepping the boundaries of the rule of law by having citizens wiretapped within his current position and using fake online accounts without a legal basis. He is also said to have been intensively involved in the MH17 investigation and to have recruited journalists and was friends with the top civil servant Demmink, who was accused of child abuse at the time . The intended deputy prime minister and minister Gidi Markuszower did not pass the security screening. The thesis of State Secretary Vicky Maeijer (PVV) was found to have plagiarized.
The VVD received four ministries: the Ministry of Education, Culture and Science and Higher Education (Eppo Bruins), the Ministry of Defence (Ruben Brekelmans), the Ministry of Climate and Green Growth (Sophie Hermans (also deputy prime minister)), the Ministry of Finance (Eelco Heinen) and the Ministry of Justice and Security (David van Weel (NATO)) and provides three state secretaries. For Participation and Integration (Jurgen Nobel), For Primary and Secondary Education (Mariëlle Paul) and for Youth, Prevention and Sport (Vincent Karremans). The VVD wants a purchasing power package of 1 billion euros for 2026 and to decouple social assistance and unemployment benefits from wage developments. These should henceforth be linked to inflation. The VVD wants a reduction in energy tax by 750 million and an increase in childcare allowance for middle incomes by 250 million euros and to cover this by reducing the size of the government. From 2027, the Netherlands will spend 2.4 billion euros less on this item annually, almost half of the total. The cabinet is also looking at a general increase in the highest VAT rate to 21.4% (currently 21%).
NSC was given four ministries: the Ministry of Education, Culture and Science (Eppo Bruins (CU)), the Ministry of the Interior and Kingdom Relations (Judith Uitermark), the Ministry of Social Affairs and Employment (Eddy van Hijum/also deputy prime minister)) and the Ministry of Foreign Affairs (Caspar Veldkamp) and provides the State Secretaries for Taxation (Folkert Idsinga), for Allowances and Legal Protection (Nora Achahbar, later Sandra Palmen), the State Secretary for Legal Protection (Teun Struycken) and a State Secretary for Fisheries, Food Security and Nature (Jean Rummenie). Nora Achahbar soon resigned out of dissatisfaction with how the integration discussion was conducted in the cabinet and in the coalition. Member of Parliament Harm Holman (57) kept 170 dairy cows on 120 hectares of land in Steenbergen, Drenthe. For the past 9 years he was chairman of the Dutch branch of the European Dairy Farmers. Before that, he was a commissioner at Friesland Foods and a member of the CDA provincial council in Drenthe and is now a member of the House of Representatives for NSC, which, together with BBB, is fighting for a manure law and an extension of the derogation scheme that will be phased out from 2024 to 2025. From 2026, the European standard for the use of animal manure will also apply to Dutch farmers. Holman was also chairman of the Dutch branch of the European Dairy Farmers. Three years ago, Holman sold his dairy farm. State Secretary Folkert Idsinga, who resigned at the beginning of November, is returning to the NSC faction in the House of Representatives. He will take the seat of Tjebbe van Oostenbruggen, who succeeded him as State Secretary of Finance after his departure. Idsinga resigned from his position as State Secretary of Finance at the beginning of this month after unrest arose surrounding his financial interests. The former State Secretary had, as prescribed, resigned from this position. This means that he had no say over his shares during his term of office. His shares were nevertheless discredited after a report by RTL Nieuws . It was said to be an amount of more than 6 million euros, but Idsinga refused to make more information public. Idsinga decided to resign quite unexpectedly and mainly pointed to the tone in the House of Representatives. In particular, the support of Geert Wilders was a sore point for him. “I will not let myself be forced with a knife to my throat to publish everything,” the State Secretary said in an explanation. The NSC member emphasized that he had done nothing wrong, but he felt that there was not enough confidence in him as a minister. A few days later, he made his interests public after all . On November 19, Femke Zeedijk and Rosanne Hertzberger resigned. The departure of NSC State Secretary Nora Achahbar, who resigned the previous Friday because of ” polarizing manners” after the riots in Amsterdam between Jewish and Moroccan rioters, was the last straw for them. According to Hertzberger, that made it clear “that things are seriously getting out of hand in this cabinet”. State Secretary Achahbar himself later stated that he did not leave because of racism. The treasurer of NSC discovered fraudulent matters shortly after taking office in April 2024. The accusation of fraud was responded to laconically. According to the board, he was completely wrong. The party board eventually decided to have an independent accountant investigate the possible irregularities. That investigation did not reveal any fraud. NSC wants 125 of the 150 members of the House of Representatives to be elected via regional constituencies in the future. This means that a political party will no longer compile a single national list of candidates, but that there will be separate lists with regional candidates in twelve districts.
BBB was given two ministries: the Ministry of Agriculture, Nature, Food Quality (Femke Wiersma) and the Ministry of Housing and Spatial Planning (Mona Keijzer) and provides the State Secretaries for Fisheries, for Defence (Gijs Tuinman) and for Mining Restoration Groningen (Eddie van Marum). BBB is immediately left empty-handed now that the Nature Restoration Act was recently approved in the EU. The reduction of the livestock population was also already largely determined. Minister Wiersma has ensured that the intervention is slightly less extensive than had already been agreed under her predecessor Piet Adema. He had intended to realise a reduction of 30 percent of the phosphate and animal rights.
Henk Vermeer, Caroline van der Plas and Wim Groot Koerkamp founded BBB (the Farmer Citizen Movement) in 2019 from their company ReMarkAble. MarCoM Strijker BV, the director of the companies, was one of the initiators. At the time BBB was founded, the three were partners in agricultural marketing agency ReMarkAble communicatie BV/Adtraction Buitenreclame/Famous Farm. Remarkable registered the web address www.boerburgerbeweging.nl on February 18, 2019 and built the associated website. A Twitter account for BBB followed in April 2019 and in August Van der Plas announced that BBB would participate in the elections in 2021. Donations, contributions and sales from the webshop and all financial contributions that enthusiasts made to BBB were still deposited into the company’s Rabobank account at that time. Wim Groot Koerkamp states on August 29, 2019 that donations for the BoerBurgerBeweging were already flowing into Remarkable’s account. The sale of approximately 6,000 BoerBurgerBoeken provided the campaign budget. However, the money from the sales does not appear in the figures presented by BBB. In addition, the terms of delivery of the marketing agency Remarkable applied to the webshop of the political party BBB until well into 2023. BBB tries to conceal this by only mentioning a Chamber of Commerce number, but it was the same Chamber of Commerce number as that of Remarkable. The three invested approximately 174,000 euros in the establishment of BBB through their company Remarkable up to the elections of March 2021. The largest part of this, 117,395.90 euros, was donated in 2019 and 2020. Vermeer says that the party reported this as a donation to the Ministry of the Interior. Publisher Agrio also donated many support advertisements. Caroline van der Plas was on Agrio’s payroll until March 2021. Agrio was also the publisher of the BoerBurgerBoek. Bayer and Monsanto are clients of this marketing company Remarkable. The founder/owner Wim Groot Koerkamp and marketing director Henk Vermeer are again secretary and treasurer at the BBB. Vermeer is also campaign leader for the BBB. The address of the BBB is the same as the address of the communications agency of Remarkable. The founded political movement was not registered as a ‘philosophical and political organization’, but as an association with ‘social services without overnight stays’, and within that category as ‘other social advice, community centers and cooperation bodies in the field of welfare’. At the end of September 2023, BBB was still registered as such. As soon as BBB, from which Wim Groot Koerkamp had already earned a good amount between 2019 and March 2021, was in the House of Representatives and received a subsidy, Marc was made a partner of Remarkable. In 2021, Wim Groot Koerkamp formally withdrew from BBB to focus on the communications agency. Vepros, Henk Vermeer’s BV, was director and partner of Remarkable from April 1, 2021 to January 2022, and sold its 30% shares in the company to support the BBB faction from March 17, 2021. Vermeer was first treasurer of BBB and was then put up for election and ended up in fourth place on the electoral list.
Eelco van der Wal, who was employed by Remarkable, was appointed partner of Wim Groot Koerkamp, Marc Strijker and Edzard van Delden in 2023. Eelco focused on ICT and social media within the company. ReMarkAble charged BBB around 210,000 euros for its services in 2022. That was more than a quarter of the BBB budget. ReMarkAble provided communication services for this, designed banners and organised campaigns on social media, and also performed more substantive political tasks, such as writing press releases and maintaining membership administration. Wim Groot Koerkamp charged an hourly rate of 110 euros for his own services, as did the other partners of ReMarkAble.
The relationship between BBB and ReMarkAble raises questions. According to ReMarkAble, a reduced rate was applied, which meant that the hourly rate would ultimately have been lower than 110 euros.
The BBB itself also finds the close financial ties with ReMarkAble undesirable and has therefore already taken measures. According to treasurer Brok, in 2022 all communication work was still outsourced to ReMarkAble ‘without questions’. Since the beginning of this year, at least two parties have been asked for a quote for each assignment. According to Brok, ReMarkAble often comes out on top. The party has also hired people to do communication work, which further reduces its dependence on ReMarkAble. The current party board believes that this creates sufficient distance between the party and ReMarkAble. The BBB received 435 thousand euros in subsidies in 2022. In order to qualify for this, the party had to list all debts above 25,000 euros in its annual accounts. This showed that the BBB still had an outstanding invoice of 85,000 with ReMarkAble at the end of 2022. In 2021, ReMarkAble still did its work for the BBB for free. This was then entered in the books as a gift in kind, on behalf of ReMarkAble, worth over 45,000 euros. Such a constructionwould now be impossible because the price that ReMarkAble charges the BBB has grown so much. In 2023, a law came into effect that prohibits gifts of more than 100,000 euros. BBB claims to have a stricter maximum of 50,000 euros. However, a discount on work is also a gift and should be added to it as such. After the mutual connection became known, an agreement was made with BBB to work with a reduced rate of 70 euros per hour for creative work and 40 euros per hour for (webshop) for 2022. Groot Koerkamp does not deny that the move to politics was financially beneficial for ReMarkAble. The company’s equity increased from 280,000 to more than half a million euros between 2018 and 2022. Groot Koerkamp announced that he also wanted to set up a public broadcaster, Aan Tafel!. The public broadcaster must be separate from both initiatives and Groot Koerkamp would therefore sell his stake in ReMarkAble. In 2023, around €200,000 flowed to ReMarkAble, bringing ReMarkAble’s total turnover to around €800,000 since BBB was founded. Versluis Accountancy from Schoonhoven prepares BBB’s annual accounts and is required to publish the annual accounts of the previous year on its website. Until recently, BBB did not comply with this, but has now published the annual accounts for 2023. But not those of 2022 or 2021.
Senator Robert Croll switched from BBB to D66 on 1 June 2025. He is the second senator in two weeks to leave the BBB, which puts the cabinet in trouble in the Senate. The current government coalition did not have a majority in the Senate, but with the help of a few small right-wing parties, it has so far managed to get proposals through both chambers. With Croll’s departure, this backdoor route has also been closed off, and with this help, the coalition is still one vote short in the Senate. Croll has turned his back on the BBB out of dissatisfaction with the party’s position on the war in Gaza. ‘As a former Red Cross volunteer, I cannot and will not stand by toothlessly watching the suffering taking place in Gaza, especially the horrific fate of its aid workers,’ Croll confirms his switch.
The official start of the cabinet was on 2 July. Van Zwol emphasises that the so-called programme cabinet of the four parties “has a special character”. Van Zwol and Elbert Dijkgraaf were informants for the past eight weeks. A total of 13 State Secretaries were appointed. The PVV supplied four and VVD, NSC and BBB three each. In addition, in addition to the non-party Prime Minister Dick Schoof, fifteen ministers were appointed to the new cabinet. Of these, the PVV was allowed to supply five, VVD and NSC four and BBB two. The coalition parties wanted three new ministries. A Ministry of Asylum and Migration, a Ministry of Housing and Spatial Planning and a Ministry of Climate and Green Growth were added.
The new cabinet has concluded a main agreement with the following 10 main points:
- Security of existence and purchasing power
- Control over asylum and migration
- Housing and social housing, infrastructure, public transport and aviation; every region counts *
- A good future for agriculture and fisheries, for food security, for nature
- Energy, security of supply and climate adaptation
- Accessible public facilities; healthcare and education
- Good governance and a strong rule of law
- National security
- International security
- Solid government finances, economy and business climate
The new coalition wants a new electoral system for the House of Representatives before the next new elections, which should strengthen the regional bond between voters and elected officials. Furthermore, steps must be taken for a constitutional revision so that laws can be tested against the Constitution. And in line with this, a start must also be made on the formation of a constitutional court, which can carry out the test against the Constitution. A single mistake should no longer push a citizen into deep trouble”, the new coalition believes and that is why the government’s reminder and collection costs will be reduced considerably. The number of civil servants and consultants in the government must also be cut and a cut of one hundred million euros has been booked on the public broadcaster. The coalition wants to improve the business climate and partly reverse recent tax increases for entrepreneurs. This includes an increase in energy tax and a reduction in the discount on motor vehicle tax for electric cars from 40 to 25%. The full MRB compensation for the excess weight of the battery up to and including 2030 was approved by the House of Representatives and the Senate earlier this year and the percentages have been fixed since then. However, the parties forming the coalition have agreed to ultimately cut 14.7 billion euros per year. This will be offset by the same amount in additional expenditure (tax relief and investments). According to them, the expenditure will ultimately decrease by 4.7 billion euros per year. For example, the coalition intends to dismiss a fifth of the civil service. However, the tax authorities are struggling with a major capacity problem, which means that people have to be added rather than left. In the coming years, the budget for development aid was to increase by a total of around two billion euros, but that was also scrapped.
There is a good chance that the right-wing parties in Brussels will achieve more in the EU now that the group “Patriots for Europe” is growing. The alliance was set up by Hungarian Prime Minister Viktor Orbán, former Czech Prime Minister Andrej Babiš and the Austrian party FPÖ. Later, Wilders attacked his prime minister again on X when it became known that millions were again being given away to Ukraine. Wilders sneered “Did you also discuss the persistent corruption there @MinPres or did you only bring money?” Wilders was meanwhile present at the court about the negative consequences of the threats on his life. The Public Prosecution Service demanded a prison sentence of fourteen years against the cleric Muhammed Ashraf Jalali and six years against political leader Saad Hussain Rizvi for death threats to Wilders .
Three of the four coalition parties of the Schoof cabinet see no point in a kilometer charge. Only the VVD is in favor. By 2030, there will be considerably more electric cars on the road . That effectively means fewer petrol and diesel cars, so this will once again cause a hole in the already tight budget.
A year ago, Marjolein Faber called the Municipal Council of Hoevelaken hypocrites, Pharisees and traitors because an asylum seekers’ centre had to be built in her place of residence, and now, in her new role as Minister of Immigration, she has to realise an asylum seekers’ centre herself. This reception will also be provided if the dispersal law is withdrawn prematurely, as Faber plans to do. With the rehearsed script “Look, we are of course stuck with the current laws and regulations and then we have the duty to accommodate people in a decent manner.”, the residents and voters find her untrustworthy. Faber previously also distanced herself from the term “replacement” that she always used. She said that she should not have used the term, and that she will not do so again. Faber has rehearsed a standard answer to all criticism of her past.. I want to change something in this country, and that can only happen as a minister in a cabinet. I am going to become the strictest minister for asylum ever in this country.” it “will be a “fair” policy. However, she now believes that there are “worrying demographic developments”. Faber (64) was in the Senate for 12 years and later became party leader. PvdA/GL leader Frans Timmermans will suddenly change course for his party in December 2024. According to him, steering the number of people coming to the Netherlands is necessary to prevent excessive population growth: “The Netherlands cannot digest that. The reason for his change of course is a report that a state commission led by former formateur Richard van Zwol submitted this spring. It contains a plea for ‘moderate growth’, in which politicians agree on ‘bandwidths’ for how many people are allowed to come to the Netherlands.
The twelve King’s Commissioners disagree and have called on the cabinet not to withdraw the distribution law. According to them, the law that was introduced last year is actually working well. “The distribution law is a good solution for the problems in asylum reception and offers a necessary instrument to arrive at a robust system for the reception and distribution of refugees across the country”. Just before the deadline, they submitted a response to the outline note that Faber presented less than a month ago. This note contains her plan to distribute asylum seekers across the country in a different way, without coercion for municipalities. The cabinet wants to withdraw the distribution law next year, as agreed in the government programme. PVV leader Geert Wilders thinks it is not going fast enough; he actually wants the law to disappear “as soon as possible”. According to the commissioners, the distribution law ensures a balanced distribution of asylum seekers and also “solidarity between municipalities”. Repealing the law would “disrupt progress” and increase problems in asylum reception. “A return to voluntary reception alone would lead to unequal pressure and a system vulnerable to new crises.”
The migration plans from the main points agreement
- asylum stop
- Opt-out clause for European asylum and migration policy
- in new refugee crisis ‘mini-Schengen’
- more border controls
- enforce Dublin agreements (asylum seeker completes procedure in country of arrival)
- send migrants back to neighboring countries
- restrict family reunification
- Implement EU migration pact with tightened asylum rules and admission procedures
- strict procedures at EU external borders
- agreements on return with third countries
- migrant reception outside the EU
Wilders himself also played a different role in order to be allowed to participate in government and set aside all his unconstitutional election promises. Wilders no longer wants the Netherlands to leave the European Union and he now supports the fight and the financial support of Ukraine against Russia. For all other plans such as lowering the AOW age, raising the minimum wage and immediately abolishing the deductible in healthcare, the financial coverage turned out not to be there due to the tens of millions in setbacks that the Wilders cabinet together with Kaag left behind. Wilder is slowly but surely losing the trust of his supporters now that real results are not forthcoming and many promises have not been kept. His party is also having a hard time. Not only GroenLinks-PvdA, but also D66, SP, Party for the Animals and Volt wanted to immediately send away PVV ministers Marjolein Faber (Asylum and Migration) and Reinette Klever (Foreign Trade and Development Aid) and signed the motion of no confidence of GroenLinks-PvdA leader Frans Timmermans. Timmermans filed the motion of no confidence against Klever and Faber because of their much-discussed controversial statements about, among other things, population replacement. 46 were in favor, 103 against. There were already plans in early October 2024 to file another motion of no confidence.
Old Politics
Turkey, which was initially also against the appointment, was previously visited privately by Rutte. He wanted Rutte’s approval and the promise that he would take Turkey’s concerns about terrorism seriously. This concerns the Kurdish PKK, with which Turkey has been at war for decades. He also demanded that Rutte, as NATO chief, would act impartially in conflicts that Turkey has with other NATO countries. Erdogan is referring in particular to Greece and Cyprus. Slovakia was reassured Slovakia received assurances from him that as the new secretary general of the military alliance he would ensure that the reinforcement of air defense would be kept in the spotlight. Rutte’s appointment will become a fact in October, because Romania publicly withdrew its own candidacy on June 20. The Ministry of Defense has a budget of 22.4 billion euros, while in 2023 it was around 15.3 billion euros. This means an increase of almost seven billion euros in one year. Mark Rutte concluded his 14 years as prime minister with a beach party in Scheveningen costing 145,500. He invited 1,400 people at the expense of the taxpayers. On February 3, after an earlier postponement, the lawsuit of legal advisor Karim Aachboun against Mark Rutte and NATO will be heard at the Court of Appeal in Brussels. He demands that Rutte be suspended as NATO boss because of his ongoing lawsuits against him in the Netherlands. The case revolves around the allowance affair and the Dutch arms deliveries to Israel. According to Aachboun, the Rutte camp made him a settlement proposal of three million euros. He was allegedly given three conditions:
- Stop the Dutch affairs regarding the benefits affair and Gaza
- Do not talk about the ‘ Demmink cover-up ‘, a controversial dossier surrounding former top justice official Joris Demmink
- Emigrating outside the European Union.
Aachboun remains combative and emphasizes that he will not accept legal tricks. “A fair trial must always be possible,” he says. Aachboun says he refused the proposal. NATO itself also made itself heard, despite the fact that it claims to be “not a party” in the case. Shortly before the hearing, NATO sent a letter to the court to influence the case. The Belgian Minister of Foreign Affairs also decided to side with Rutte and NATO.
Inheritance and skeletons in the closet
- A province of Groningen where houses were destroyed by unbridled gas extraction for export to Germany and the resulting earthquakes;
- Gas shortages due to sales to Germany, meaning the Netherlands now has to import expensive gas;
- Giving away pensions to the EU;
- A number of embassies were closed or reduced in size;
- Huge influx of gambling addicts due to legalization of gambling;
- Energy transition that has been too rapid, causing the network to come to a standstill and the transition to fail;
- A lost SNS Volksbank due to mismanagement and fraud;
- Corruption at ABN AMRO;
- Nearly 70,000 parents who went bankrupt or mentally collapsed due to the years-long benefits scandal and children who were unnecessarily removed from their homes as a result;
- An abundance of admitted immigrants made housing unattainable for the Dutch people and crime rose to unprecedented levels;
- Unrest, panic and unrest among farmers and fishermen who have to stop for environmental reasons and who continue to postpone the manure problem for years;
- A polluted climate due to the permission of chemical discharges and the maintenance of Chemours and with health problems for local residents;
- The toleration of Tata Steel , which did not allow any obstacles to be put in its way when it came to environmental pollution and the production and distribution of pathogenic carcinogenic substances ;
- Major defense deficits and lagging NATO investments;
- Thousands of convicted offenders now due to staff shortages and shortages of prematurely closed and demolished prisons;
- Huge inflation, with food now even 6 percent more expensive and service prices rising by 5.6%;
- Delayed monitoring and delayed improvements in drinking water quality;
- Abnormally rising energy costs that were the final blow for many companies;
- Stalled energy transition due to impoverishment at Tennet;
- Sharp increase in municipal levies and costs for building permits;
- Increased state pension age since 2013, which has particularly affected people in heavy occupations;
- Increased poverty , especially among children and food banks that now have to mop up with the tap open;
- Declining care with long waiting lists, closing nursing homes and a significantly increased deductible;
- A years-long investigation, costing almost 200 million, into the shot-down MH17 flying over a war zone;
- The destruction of the taxi market with failed control systems and Uberpop and riots as a result;
- Stalled projects and billions in losses for ICT of government institutions;
- 14 billion euros in losses due to the box 3 levies that were incorrectly calculated according to the Supreme Court ( 75% of the damage item is attributable to the national debt);
- 10 billion euros in donations to Ukraine for the war against Russia;
- 4.7 billion to Greece with many billions more in bailouts;
- Years of incorrect calculations at UWV for the WIA due to previous cutbacks, resulting in costly recovery operations;
- Public transportation costs have risen to unprecedented levels;
- Incorrect calculations (1.5 billion euros) in motor vehicle tax for electric cars, which means that the tax advantage on this now disappears and the market collapses further;
- Out of control asylum influx and stalled reception;
- Major housing shortage and stalled new construction due to nitrogen and other regulations;
- Cutbacks and problems with healthcare transport;
- Exit from shops and virtually all renowned retail chains collapsed;
- Thousands of criminal cases are either hopelessly behind or cannot even be dealt with and must be dropped due to a gridlocked legal system;
- National debt increased by 50 billion euros;
- Schools were not sufficiently inspected by the education inspectorate , meaning that 1 in 5 schools no longer meets the standards;
- Wrong decisions during Corona due to incorrect and overpriced unnecessary face masks and closures;
The Court of Audit determined that the Rutte IV cabinet spent almost 21 billion euros in 2023 without first requesting permission from the Senate and/or House of Representatives. In the first quarter of 2024, many billions were spent on warfare and immigration. In the last quarter of 2023, several large retailers went bankrupt and thousands of people became unemployed. The number of unemployed has increased further, by an average of 7,000 per month. In February, 379,000 people were unemployed. That is the highest number in almost a year and a half. In the second quarter of 2024, that was 370 thousand, 3.6 percent of the working population. Production volume is still declining and producer confidence is declining further. Producer confidence and consumer confidence are well below the average of the past twenty years and will deteriorate sharply in the long term. The climate and nitrogen funds put pressure on government finances, as do more expensive healthcare, social security, asylum and defense shortages .
Dutch industry has not grown for three years in a row, according to a new report from ING. Geopolitical tensions, trade uncertainty and high energy prices are weighing on the export-oriented sector.
The rising interest rate had a major impact on DNB ’s financial management . By taking 460 million euros from the reserves (which now still contain more than eleven billion), the net result could still come to zero, but the Dutch State can no longer expect a dividend for the time being. Billions in losses are expected for the coming years and last year DNB had a loss of almost half a billion euros for the first time since 1931. In 2024, the loss was 3.2 billion euros. DNB itself expects the losses to continue until 2028. There is certainly a chance that DNB will end up with negative financial assets and if the current buffer of 11 billion euros proves insufficient, the Dutch State will have to provide financial support. DNB itself believes that the expected loss could amount to as much as 10 billion in the coming years. The losses are the result of deteriorating economic conditions, the consequences of the war in Ukraine and the pandemic . The European Central Bank is going to announce an interest rate cut to turn the tide due to the disappointing figures of the European economy. DNB does not expect to make a profit again until 2028. The loss at DNB is due to the policy of the European Central Bank (ECB). In order to combat high inflation, the ECB decided in 2023 to slow down the economy by rapidly raising the interest rate to a record level of 4 percent. In April 2025, the target inflation level was reached and the interest rate was lowered to 2.25 percent. A total of seven cuts were required. The current inflation in the Netherlands is 3.7 percent, but in the eurozone as a whole it is 2.2 percent. The interventions via the spring memorandum, such as the freezing of social housing, should also bring inflation to the desired level in the Netherlands. However, Minister Keijzer of Housing and Spatial Planning withdrew the bill on the implementation of the rent freeze for social housing in 2025 and 2026. As a result, rents in the social housing sector may increase from 1 July by the statutory maximum of 5% and in the housing association sector by an average of a maximum of 4.5%. In doing so, the minister is following the advice of the Council of State not to submit the bill.
Main outline agreement
Geert Wilders (PVV), Dilan Yesilgöz (VVD), Pieter Omtzigt (NSC) and Caroline van der Plas (BBB) concluded a programme outline agreement after 175 days of negotiations . Formateur Van Zwol then continued to form a cabinet. All candidates were screened and had interviews with candidate Prime Minister Schoof and formateur Van Zwol. Wilders’ choice of Schoof is strange. He is a good friend of Rutte and the choice was probably whispered to him by others. His views and choices differ very little from those of Rutte.
The parties forming the coalition have agreed to cut 14.7 billion euros per year. This will be offset by the same amount in additional expenditure (tax relief and investments). According to them, the expenditure will ultimately be reduced by 4.7 billion euros per year. For example, the coalition intends to dismiss a fifth of the civil service, which is impossible in practice. The tax authorities are even struggling with a major capacity problem, which means that people have to be added rather than removed. In addition, many unforeseen billions of costs are expected that are not included in the national budget (see below). In the coming years, the budget for development aid was to increase by a total of around two billion euros, but that was also scrapped. PVV minister Klever, under pressure from her civil servants, is not accepting this and wants to reopen the discussion in the spring.
There is a good chance that the parties in Brussels will achieve more in the EU now that the right-wing group “Patriots for Europe” is growing. The alliance was set up by Hungarian Prime Minister Viktor Orbán, former Czech Prime Minister Andrej Babiš and the Austrian party FPÖ. Later, Wilders attacked his prime minister on X again when it became known that millions were again being given away to Ukraine. Wilders sneered “ Did you also discuss the persistent corruption there @MinPres or was it just money being brought?” He apparently forgot or was unaware that the millions in question were already budgeted for in the spring memorandum . In the meantime, Wilders was present at the court about the negative consequences of the threats on his life. The Public Prosecution Service demanded a prison sentence of fourteen years for the cleric Muhammed Ashraf Jalali and six years for political leader Saad Hussain Rizvi for death threats to Wilders.
Three of the four coalition parties of the Schoof cabinet see no point in a kilometer charge. Only the VVD is in favor. By 2030, there will be considerably more electric cars on the road . That effectively means fewer petrol and diesel cars, so this will once again cause a hole in the already tight budget.
A year ago, Marjolein Faber called the Municipality of Hoevelaken hypocrites, Pharisees and traitors because an AZC had to be built in her place of residence and now, in her new role as Minister of Immigration, she has to realize asylum seekers’ centers herself. That shelter will also come if the dispersal law is withdrawn.
Wilders himself plays a different role in order to be allowed to participate in government and set aside all his election promises. The PVV wanted to shred the association agreement offered to Ukraine by the EU . Wilders also wanted the Netherlands to leave the European Union and he did not want to support Ukraine any more, he wanted to lower the AOW age, increase the minimum wage and immediately abolish the deductible in healthcare. All the election promises turned out to have been surrendered during the formation of the coalition. Halving the deductible and his hobbyhorse a crisis emergency law ultimately did not make it after three months of wrangling. Calculations by the ministry also show that the health insurance premium will increase to 200 euros per year due to the measure. There are also fears that healthcare itself will become more expensive due to the halving of the deductible, because the demand for healthcare may increase. This is because the incentive to use healthcare less will partially disappear.
Tax and premium receipts will grow by 16.5 billion euros in 2024. The VAT increase for hotels, books, sports competitions, festivals and the gym, among other things, was supposed to yield the State 2.2 billion euros. Despite protests from society, the Schoof cabinet had decided to do this. This VAT increase has now been cancelled. Minister Heinen must now come up with alternatives to cover the resulting deficit of 1.2 billion. According to rumours, he has plans to increase the VAT rate from 21% to 21.4% next year or to tax certain goods and services that currently fall under a lower rate more. Yet another option is to introduce a single VAT rate for all goods and services. That would be higher than the lowest rates, but lower than the highest rates.
The Exit National Rural Area Program (NPLG) has been discontinued. Provinces can discontinue the current programs for nature restoration and tackling the nitrogen problem, but some refuse to do so. Provinces are therefore no longer obliged by the new cabinet to adhere to the current agreements to restore nature and tackle the nitrogen problem. Within the NPLG program, the provinces themselves drew up a coherent spatial plan to achieve all environmental goals. Now, the problem with the granting of building permits will not be resolved for the time being.
National debt
The Netherlands paid 10.3 billion euros to the EU in 2023. The Netherlands received 1.4 billion euros in subsidies under shared management, but this does not include all income from the EU. No current figures are yet available on the total receipts in that year; in 2022, these totalled €3.5 billion. The income from the Recovery and Resilience Plan, also known as the Corona Recovery Fund, is also not yet certain: The Minister of Foreign Affairs initially expected to receive €2.6 billion this year. But the Netherlands will not receive this amount in full in 2024. In 2022, the Netherlands already paid 2.7 billion euros more to the European Union ( EU) than it received and now has to pay an additional 3 billion for further expansion with more member states . The largest cost items are the contribution to the EU , the increasing interest on the national debt, immigration, the energy transition , the war in Ukraine and Israel, the ageing population, and the measures to reduce nitrogen. Due to the decrease in government debt, the so-called debt ratio has fallen to 45.9 percent. This means that the size of the government debt is now less than 46 percent of the total size of the Dutch economy. This means that the Netherlands now comfortably meets the European standards that prescribe a maximum debt of 60 percent of the gross domestic product (GDP).
Migration is again the largest cost item at 8 billion euros, 4 billion of which goes to the COA
In 2023, the Dutch government spent 860 million euros more on interest expenditure. This will then increase to 1.6 billion in 2024 and 2.3 billion in 2025.
The additional expenditure for the energy crisis does not fit within the current budget and even turned out to be incorrectly calculated. Paying out 190 euros twice in November and December cost the government 3.15 billion instead of the previously calculated 2.6 billion. The government came up with a support plan for SMEs of around 3 billion euros. 4 billion euros must go to infrastructure projects as part of 7.5 billion euros that had to be released to make new residential areas accessible. The rest will go to investments in infrastructure for cars (2.7 billion euros) and cyclists (780 million euros). In 2022, 403,108 people immigrated and 179,310 people emigrated from the Netherlands. To place asylum seekers , municipalities were persuaded with 2,500 euros for every asylum seeker who is placed for five years. Asylum seekers who leave voluntarily receive 5,000 euros. There is a huge corona tax debt that has to be repaid to the tax authorities in five to seven years. Some 1700 companies are already on the list for possible debt restructuring and more are coming. Many bankruptcies and closures are therefore expected. Especially because the German economy is in very bad shape and this will also have consequences for trading partner the Netherlands. The Dutch industry is in a very precarious situation now that worrying figures are being shared from the sector. Never before this year did the prospects for the sector look as bad as they do now, according to data from the Dutch Association for Purchasing Management (Nevi). For example, the volume of production fell sharply and the number of orders has also plummeted. ‘There is talk of a remarkable weakening of orders, especially from Germany.
The Court of Audit finds that some passages in the proposed budget amendment (BBV) are again insufficiently clear and that the accountability for legality that local government boards must provide has not been sufficiently elaborated. Failure to process the points of attention or insufficient processing could lead to structural uncertainty about the legality of specific benefits. In 2020, the ministries under Rutte spent 9.1 billion unlawfully. It has not been made clear how that money was spent. This significantly exceeded the “tolerance limit of 1 percent errors and uncertainties” used by the General Audit Office . Hugo de Jonge’s Ministry of Health had already unlawfully spent 5.1 billion euros on face masks, ventilators and tests for the purpose of Corona. For some of the items, it could not be demonstrated what happened to them. The investigation into Sywert van Lienden’s face mask deal cost the Dutch State more than 5 million euros. The General Audit Office also sees shortcomings in the business operations of many ministries, “some of which are very serious”. At the Ministry of Justice and Security, for example, the Audit Office notes that names of suspects are being swapped in the criminal justice system. “As a result, perpetrators of sexual and violent crimes can continue to walk around freely.” The Ministry of Defence has still not got the security of important military objects, such as command centres, ammunition depots and frigates, in order. And according to Duisenberg, the Ministry of Foreign Affairs has “no good insight” into financial obligations.
After his term as minister, Hugo de Jonge became acting King’s Commissioner in the province of Zeeland.
In 2021, no less than 15 billion euros in government expenditure was again made that, according to the Court of Audit, was not in order. According to the Court of Audit, the percentage of payments found in which errors were made has increased from 2.7 percent to 3 percent. The auditors also signaled risks with regard to the EU funds that were made available in response to the corona crisis and the war of aggression in Ukraine. Municipalities face an uncertain financial future with structural deficits that could amount to more than 1 billion euros, the accounting firm BDO warns in an annual analysis of the annual accounts and budgets of approximately 350 municipalities in the Netherlands. The municipality of Amsterdam has built up a debt of more than 7.5 billion euros and Amersfoort, Capelle aan den IJssel and Heerlen were also in financial trouble. Twelve municipalities are even under guardianship of the province , because they cannot balance a single budget year until 2024. That is three more than last year. Provinces are concerned about the finances of municipalities, which will receive less money from the central government in 2026. For this reason, municipalities themselves speak of a ‘ravine year’. Provinces, which supervise, are preparing for the consequences, including through additional supervision. The tax authorities also appear to have committed fraud and discrimination, and the finances of many municipalities and the central government are not in order. The tax authorities are short of 400 employees to collect outstanding taxes and are severely overloaded. In 2022, 41.7 billion euros were spent on matters that were not approved by the House of Representatives. 23 billion of this was spent by the Ministry of Economic Affairs and Climate. The expenditure was made on the basis of Article 2.27 of the Accountability Act. The Ministry of Finance is still experimenting with ways to resolve the benefits affairto be dealt with. The costs for this were estimated at 310 million almost four years ago, but the 7.2 billion euros have now been passed and the end is not yet in sight because another 2 billion in costs are expected. To persuade parents to withdraw their objection, the UHT offers 5,000 euros per case. In the meantime, 12,000 objections have already been submitted. The previous cabinet made an additional 2.3 billion euros available for improving such damage routes. Of this, approximately 1.4 billion euros was made available on 26 June 2024 via an amendment to the first supplementary budget of Finance. At the same time, an additional 0.9 billion euros has been reserved for the Supplementary Item. This is still based on a rough estimate, with major uncertainties surrounding the number of victims per route and their average damage. This cabinet covers these additional costs for damage routes. The government took over or forgave 887 million euros in debts and payment arrears from benefit parents. Almost 84,000 affected young people have also received “financial support”. The government must, according to the court, take over a debt that a benefit parent has with her parents. The debt does not fit within the arrangement that the government had made for taking over debts, but according to the court, that arrangement is ‘unfair or unreasonable’ for her.
Corona/Covid
Entrepreneurs received around 8 billion euros in compensation for fixed costs during the corona crisis. Due to stagnation in supplies and forced closures due to infections among employees, many companies found themselves in financial difficulties. Since the start of the corona crisis, banks in the Netherlands have provided 23.7 billion euros in loans or credit facilities to more than 161,000 entrepreneurs. This concerns a total of 32,000 loans worth 20.7 billion euros and 129,000 companies that have been granted a deferral of payment. More than 650,000 companies have applied for one or more support measures due to the pandemic. That is 34.8 percent of all companies in the Netherlands. 15.1% of companies requested a deferral of tax payments for an amount of 20.8 billion euros. The two-year support measures ran from March 2020 to June 2022. The most requested scheme was the TOZO, income support that was mainly used by small independent entrepreneurs such as self-employed persons. For 18.1% of the self-employed persons who received the support, this cost 3.5 billion euros, TOGS or TVL (compensation for damage or fixed costs) was received by 12.9% of companies and that cost 10.1 billion euros. The wage cost support NOW was applied for by 7.3% of companies and cost the State 23.9 billion euros. If the support was received incorrectly, it must be repaid. The entrepreneurs who made use of tax deferral must now pay back with interest within 5 to 7 years. This will result in a lot of bankruptcies . Some 1,700 companies are already on the list for possible debt restructuring. Many companies, including De Thermen in Rosmalen, have already gone bankrupt . Even large chains such as ICI Paris, Adidas, Deichmann, H&M, Mediamarkt, BCC and Big Bazar could no longer pay their rent due to the Corona crisis and needed government support. Since March 2020, Dutch banks have provided nineteen billion euros in support in the form of additional loans or deferral of repayments to 161,000 entrepreneurs and almost 34,000 private individuals. The Corona pandemic cost the Dutch government around 92 billion euros and the budget deficit for 2023 increased to 49.2 percent. At the Ministry of Health, the administration was in poor order at the time of Minister Hugo de Jonge (CDA). The corona crisis worsened the accounting chaos at the ministry, because medical supplies had to be purchased in great haste. It is unclear whether an amount of 5.1 billion euros was spent well.
Vitol
Shipping
Orders for new container ships reached a new low. Two major shipping companies went bankrupt within a month. Flinter Barendrecht with 31 ships and Abis with 21 ships. Bertram Rickmers had to save part of his shipping empire through a partnership with Zeaborn. At the Keppel Verolme shipyard, almost 100 of the 350 jobs disappeared. The shipping company Vroon in the Central Industry Group (CIG) in Groningen also had to be saved by investment company Nimbus. The best-known CIG company Centraalstaal in Groningen, which supplies preformed steel plates for ships, had to reduce the number of employees from 120 to 50 through reorganizations. The company went bankrupt and was continued in two by the Ferus Smit shipyard and CIG Architecture. Wolfard & Wessels Werktuigbouw in Hoogezand, active in the offshore sector, also got into trouble. After bankruptcy, it made a fresh start with half of its 104 employees. In order to save the sector from collapse, the Dutch government made five million euros available via the Sustainable Shipbuilding Subsidy Scheme (SDS), which allowed shipping company Van Oord to order a new crane ship (on natural gas) from the Neptune shipyard despite the malaise, which could use the profit to pay the imposed penalty payment for environmental pollution . The Christian Union was not only at the basis of the creation of the subsidy, but was also of decisive importance in the approval for the change of the zoning plan and a more generous environmental permit for the new construction plans of the Neptune Shipyards shipyard. The ailing Royal IHC was also allowed to build such a ship on gas with money from SDS. In June 2015, 500 jobs had to be lost at IHC Merwede due to reorganisation as a result of a decline in orders. IHC is owned by Parkland NV of Cees de Bruin of investment fund Indofin (62.10%), Stichting Administratiekantoor Management en Personeel IHC (27.89%) and Rabo Capital BV (10.01%). Norddeutsche Landesbank (Nord/LB) suffered a net loss of 1.9 billion euros in 2016. Last year, 2.9 billion euros had to be set aside for the extreme losses in shipping. Poles, Czechs, Bulgarians and Romanians keep Dutch inland shipping going to some extent. About 30% of the jobs on the ships are filled by foreign sailors, skippers and captains. The Dutch Damen Shipyards is not allowed to ship four submarines for defensebuilding for the Royal Netherlands Navy, but the French shipbuilder Naval Group. The fire about this in the Lower House was extinguished with the order to Damen to build 4 war frigates for 2.5 billion euros. The construction of six F126 frigates for Germany is also seriously delayed. Damen is therefore again experiencing acute financial problems. Director Roland Briene of Damen Naval from Vlissingen said a few weeks ago in a staff meeting that there were ‘serious operational challenges’, especially at a time when opportunities for defense companies are there for the taking. The problems are caused by, among other things, defective new software. Damen has replaced all kinds of different software systems with a large software package that should be able to do everything. But something goes wrong with sending the construction drawings from the design department in Vlissingen to the shipyards in Germany, which actually have to start building. ‘So it is a software problem’, says Rengers. ‘But of course they are enormously complex drawings. So it is a bit more complicated than making some prints of the construction drawing.’ The consequences of the malfunctioning software are immediately enormous. The German shipyards that were supposed to build the ships have meanwhile accepted other smaller orders to keep the personnel employed. And the client, the German navy, is not paying for the time being, because construction is not yet underway. With this type of order it is customary for the client to pay in tranches. ‘The total order is 7 billion euros. So a tranche of that is also a huge amount. And you very quickly get a liquidity problem.’ And a bridging loan of 7 billion euros is not something a bank will quickly provide. But on the other hand, the German navy cannot now drop Damen all at once and order the frigates elsewhere, says Rengers. ‘Negotiations are now taking place at all levels.
Almost 75 percent of the container terminal capacity in the port of Rotterdam is owned by companies from China and Hong Kong.
Farmers under pressure
The dairy farming sector is in crisis: thousands of companies are threatened with closure, with an economic loss of 1 to 2.1 billion euros. Approximately 8,000 rare cows, part of the cultural heritage, are at stake. A crisis summit with banks, feed producers and farmers’ organizations yielded 7.4 billion euros to reduce the dairy herd. The EU demands that 500,000 cows (about a quarter of the livestock) disappear by 2030. In addition, the government is investing billions in climate goals, such as 9 billion in 2024 for green hydrogen.
The transition fund for nature and agriculture (24 billion euros) was scrapped in the coalition agreement of BBB, PVV, NSC and VVD. This means that 10 billion less is available for farmers. However, there is 1 billion annually for innovation, buy-out of old farms and manure solutions, plus 500 million for agricultural nature management. An EU subsidy of 105 million euros helps farmers relocate from Natura 2000 areas, with full reimbursement of costs. An earlier EU support of 1.47 billion compensates farmers who stop up to 120% of their company value.
Since 2019, nitrogen measures have led to farmers’ unrest. Dairy farmers can no longer dispose of manure on their own land and manure processing or export does not provide a sufficient solution. BBB leader Caroline van der Plas calls the nitrogen plans a “break with the demolition policy” and advocates fairness and feasibility. She strongly opposes forced shrinkage or expropriation and threatens to resign if this is imposed. In the meantime, Wiersma extended the uncertainty for PAS reporters by three years, which makes enforcement by courts more likely.
The SGP opposes the skimming of manure rights, while CDA’s Eline Vedder advocates sparing young farmers. Farmers Defence Force expresses dissatisfaction about BBB’s lack of progress. There was unrest within BBB itself: Member of Parliament Lilian Helder and six members of the Overijssel provincial council resigned in early February. During the formation, the nitrogen fund was scrapped, which led to criticism from D66, CDA and GroenLinks-PvdA. The ministerial nitrogen committee hopes to present a future plan soon, but financing remains a sticking point.
Judiciary and prison system
From March, simple civil cases in The Hague, Overijssel, Rotterdam, Dordrecht and Zeeland and West-Brabant will be handled by a ‘regular judge’ for the next three years, a new low-threshold form of justice. The ‘regular judge’ handles disputes about employment, housing or shopping. It must involve sums of money smaller than 5000 euros, such as an unpaid bill or a conflict about unpaid wages. People with an employment conflict can also go to this judge. However, the regular judge does not handle dismissal cases. aar . This is a three-year trial and the Ministry of Justice and Security expects that the regular judges will handle around four hundred cases per year. Only cases for which no lawyer or bailiff is required and for which no legal documents need to be drawn up are eligible. Cases can be registered online using a simple form. First, it is checked whether a case is suitable. If so, the regular judge will try to see during an oral hearing whether the parties can reach a solution together. If that does not work, the judge will still decide. This will happen as soon as possible after the hearing. Anyone summoned before the regular judge is obliged to participate in the procedure. If a party does not show up, the judge will rule by default. Minister Van Hijum hopes that the regular judge will lower the threshold for going to court. “Too often, employers do not come to financial agreements with migrant workers, flex workers and self-employed persons. In parts of the Netherlands where the trial with the regular judge is not running, people can go to the subdistrict court. This court also handles conflicts about financial matters up to 25,000 euros.
The Public Prosecution Service (OM) in the East of the Netherlands stopped bringing approximately fifteen hundred criminal cases to court due to a shortage of staff at the Gelderland court. And in order to keep room for “more urgent cases” in all the hustle and bustle, the OM asked the court again at the end of November 2022 to cancel cases involving simple assault, simple theft, insults, threats, but also minor drug cases and traffic cases. More than 50 cases were also recently canceled in The Hague. These are cases that have been waiting for more than a year and a half to be dealt with by a police judge. The judge handles criminal cases in which a maximum prison sentence of one year can be imposed. In this case, these are simple crimes, such as theft, traffic cases and possession of cannabis. A number of cases were dismissed, others were settled with a penalty order. Less important cases are still being dealt with, sometimes years later. Any victims who do not agree with the handling of their report or the decision in their case can file a complaint with the court of appeal. A significant backlog has arisen during the corona period. The Public Prosecution Service is short of 104 full-time public prosecutors. There is also a shortage of at least 50 judges. In order to solve the capacity problems in the judiciary, an additional 155 million euros per year will be set aside in the coming years to recruit new judges and court staff. The ministry has also chosen not to lock up more than 4,000 convicts for the time being due to a lack of staff and space. In the meantime, the state has sold four prisons and four courts. State Secretary Ingrid Coenradie of Justice and Security wants to investigate in the short term whether convicted criminals can be housed in Estonia from 2026. St Maarten received 30 million dollars from the Netherlands to improve the prison system, 4 million is intended for a new prison. The remaining prisons are struggling with a shortage of staff, which means that offenders have to wait for their sentences . In Spain, convicts who receive a sentence of less than two years for a non-violent crime do not have to serve that prison sentence at all as long as they do not commit any other offences, so it can get even crazier. The situation in prisons is so dire that the caretaker government has decided that people who have an outstanding prison sentence of up to two months can serve their sentence at a later date . However, that term has proven to be too shortand in practice, long-term prisoners are now also being released. Even a prisoner with 4.5 cells is walking around freely. Such long prison sentences involve robbers, rapists, drug criminals and ATM burglars. There is no room in the prison for 2,400 prisoners. In addition to postponing these prison sentences, prisoners are sometimes allowed to go home on Fridays if their sentence actually expires in the weekend or on Monday. The emergency measures will apply for the coming months in any case. The government is working on a plan to send prisoners home two weeks earlier, but this was suspended by Wilders for several months by instructing his State Secretary Ingrid Coenradie (Justice and Security, PVV) to temporarily house prisoners in a part of the Schiphol Judicial Complex until another solution is found. More prisoners in 1 cell would cause problems because of the safety of prisoners and staff. Locking up prisoners in the Schiphol Judicial Complex does have consequences for the reception of unwanted aliens. Some 2,655 people have been sentenced to prison terms, but are not in a cell due to staff shortages. 90 percent of guards feel that the work has become harder. State Secretary Ingrid Coenradie (Justice) needs hundreds of millions of euros extra for prisons and the problems there. The money must be arranged in the spring memorandum and according to Coenradie (PVV) it must not be at the expense of other matters in the justice budget. Half of the staff say that it is also becoming increasingly unsafe. People are threatened, strangled, have shit thrown at them, are cursed at or thrown down the stairs. Sometimes you see that guards have to be rescued by other prisoners. The responsible minister Weerwind of D66 previously lied to the House of Representatives when he said that it only concerned prisoners who had committed a minor offence. Incorrectly or deliberately informing the House of Representatives means that he will have to resign. There are also insufficient staff at the probation service to keep released criminals on the right track . Almost all supervision of young revolving door criminals is lacking. However, no parliamentary questions were asked to Minister Weerwind about the incorrect or deliberately informing about the release of longer-term prisoners prisoners. Since 2021, prisoners were no longer automatically released early and leave and probation periods also became less optional. Of the ten self-reporters with the longest sentences, the majority were convicted of drug-related offensesbased on the Opium Act, one case in an organised context. Young people also have to wait too long for their sentence. The sentencing process for young people has been taking too long for years. As a result, waiting times are still longer than the norm, the Justice and Security Inspectorate notes in a new report. The waiting time varies per situation, but in some cases can last years. There is no insight into where the delays in the criminal proceedings of young people arise. The organisations involved, such as the Public Prosecution Service (OM), the police and Child Protection, point the finger at each other. The chain has also been struggling with staff shortages and a shortage of specialist care for young people for years. In addition, there are few places available in youth institutions and for community service. The inspection therefore concluded once again that the Public Prosecution Service, the police and Child Protection are under “high pressure”. Of the €7.4 billion in costs incurred by the police in 2023, approximately €2.3 billion can be attributed to investigations. Of the €7.4 billion in costs incurred by the police in 2023, approximately €2.3 billion can be attributed to investigations. It is currently unclear how the remaining €5.1 billion (69%) is divided. The Public Prosecution Service (OM) will no longer prosecute suspects of offences punishable by up to six years in prison via the courts, but will punish them itself. Suspects of criminal offences such as theft, vandalism or simple assault will more often receive a fine or community service order via a penalty notice. Approximately 80 percent of the criminal cases in the justice system do not concern very serious offences, but cases in which prison sentences of at most a few weeks or months are imposed. If these cases are consistently summoned, this will result in the judiciary having less room for other, more serious cases. Since 2008, the Public Prosecution Service has had the legal authority to deal with minor offences itself using the Public Prosecution Service Penalty Order (OMSB). The College of Attorneys General wants to make optimum use of the possibilities offered by the penal order and issue fewer summonses and more penal orders, thus making the necessary cells available. Almost 6,000 of the convicted criminals cannot be found. Together they are responsible for more than 7,000 cases, including serious violent offences. Most of them are suspected of being abroad. State Secretary Coenradie wants to be able to send prisoners home a maximum of two weeks before the end of their sentence in the most extreme cases, but only for prisoners with a prison sentence of up to one year. Sex offenders and perpetrators of a serious violent crime are not eligible, emphasizes the State Secretary for Justice and Security. And early release will only happen in case of dire need, when there really is no more room for another convict. An attempt must always be made to make the so-called ‘final leave’ as short as possible. Better three days, as is already possible , than two weeks. The Council of Ministers approved these plans on March 7, 2025. They will now be submitted to the House of Representatives. Wilders has already indicated via X that he is against the plans, just like the VVD. The House of Representatives debate on Wednesday 12 March should make it clear whether Coenradie will succeed in convincing the critical parties or in gaining sufficient support thanks to opposition parties. Coenradie herself also finds it a painful measure, but sees no other option. She thinks that it may be necessary “in a few days already” to send prisoners home more than three days before the end of their sentence. Wilders would have preferred an increase in the number of multi-person cells instead of early release. And that is also coming, Coenradie writes in her letter to the House of Representatives, but on a small scale: the measure will result in more than a hundred more cells this year. The State Secretary believes that more people in one cell can create unsafe situations. “I stand up for my staff,” she said this morning before the start of the Council of Ministers. “I am not going to make irresponsible choices that undermine that safety.” “But,” she added afterwards, “without this intervention, police cells will remain overcrowded and suspects and convicts are at risk of being released arbitrarily. I cannot and will not accept that scenario.” It is also being investigated whether a temporary emergency unit with sixty places can be added to the Limburg women’s prison Ter Peel next year . The State Secretary previously announced that it is code black in the prisons and that emergency measures must be taken. In the past ten years, when there was still a surplus of cells, 26 prisons and several TBS clinics have been closed. Many guards have gone to do something else, which means there is now a shortage of staff. But in the meantime, crime rates are rising and longer sentences are being given. Among other things, it is being investigated whether the prison in Almere, which was closed in 2019, can be reopened.
The prison system did not receive any additional money in the spring memorandum. Wilders has skipped his own state secretary, which means that the necessary renovations of prisons may not be able to go ahead; that money is needed for development aid. In the long run, prisoners will have to be released even earlier. Wilders and Coenradi have been in public disagreement for some time now. All measures have been approved by the cabinet and will go to the House of Representatives. After Wilders blew up the coalition, she decided to join JA21. Coenradie says that she will be on the electoral list under party leader Joost Eerdmans and that she has chosen a party “with realism”, but does not rule out working with the PVV again: ‘I no longer want to do anything with or for Wilders. From mid-July, prisoners may have to be released up to two weeks earlier at the end of their sentence. Caretaker state secretary Teun Struycken (Justice) will discuss this in the cabinet next week. The earlier release of five days has also been happening for some time now due to a shortage of cells and guards.
Energy
TenneT, the operator of the high-voltage grid in the Netherlands and a large part of Germany, is currently still fully owned by the Dutch State. The caretaker cabinet has decided to grant a temporary loan of 25 billion euros to grid operator Tennet. The energy grid is facing capacity shortages, partly due to the rapid introduction of green transport and the achievement of environmental standards. With the Climate Agreement and the Climate Plan, the Netherlands is starting the transition to the Climate Goals as laid down in the Climate Act. This means that the energy system must be virtually emission-free by 2050. The transition requires investments in the energy system (supply and production, infrastructure, use) that ultimately entail high costs for citizens and companies. In recent years, a shareholding by the German State has been investigated. Discussions have shown that the German State also sees added value in exploring the possibilities for an investment in TenneT and this has led to a declaration of intent (‘joint declaration of intent’, ‘JDI’). Based on this JDI, negotiations have started on the conditions for an investment by the German State. to be investigated. In the coming months, Germany will be consulted on how the shareholding can be worked out. During further negotiations, it became clear that Germany wants to become a 25% shareholder in the German part of TenneT. TenneT estimates its current investment agenda for the period 2020-2029 at an amount between €40 and €50 billion. Of this, the required additional equity that must be provided by the shareholders is estimated at €5.3 billion. 70% of the investment amount would be needed for the German electricity grid. The required additional investments in the energy transition amount to more than €350 billion in the period between 2015 and 2050. Of this, approximately 20 billion euros have already been spent between 2015 and 2020. And another 100 billion euros must therefore be invested between 2020 and 2030. TenneT has been legally obliged since December 2006 to connect all offshore wind farms in the German North Sea to the electricity grid. In addition to planning and design, TenneT Offshore is also responsible for the construction and subsequent operation of grid connections at sea up to the point on land where the energy is supplied to the German electricity grid. In addition to expanding and strengthening the grids to meet the growing demand for capacity, TenneT also faces a major maintenance task. A significant part of the high-voltage grid is reaching the end of its technical life and must be replaced and modernised. At the same time, there is a significant maintenance task to keep the existing grid reliable now and in the future. New bottlenecks have arisen on the electricity grid in Friesland, Gelderland and North Holland. The maximum capacity of the grid has been reached at these points. To pull this out of the doldrums, 500 million euros are being invested in a network company. Stedin invested more than 700 million euros in the network last year. More investments worth at least 8 billion are expected to follow by 2030. With the contribution of 500 million, the State will become an 11.9 percent shareholder. Some 6,600 companies cannot function because they are waiting for a connection to the network. The same fate awaits companies for the drinking water supply. Of the ten drinking water companies, more than half are on the edge of their reserves. Companies must have 10 percent of their customers’ demand in reserve. Seven companies do not reach this limit. The extraction of oil and gas will be taxed more heavily and energy companies will have to pay an additional two billion euros in tax in 2023. Rijkswaterstaat had set aside 270 million euros for cleaner water in Gelderland and Overijssel, but the costs appear to amount to no less than 438 million euros. The government is making another 19 billion euros in loans available to Tennet. The government is ending its resistance to the introduction of zero-emission zones in city centres. State Secretary Jansen of Infrastructure had to admit that he has no say in the matter. Ultimately, the municipalities themselves will decide and must make the decision themselves. This means that in certain parts of the city centre, a quarter of company cars will no longer be allowed into the city. As of January 2025, emission-free zones for polluting vans and trucks will be introduced in fourteen Dutch cities, with all kinds of possible exceptions. The aim is for thirty to forty municipalities to participate by 2025. It is now planned for 29 municipalities.
Minerals and (nuclear) energy
For decades, the Dutch gas supply was sold abroad for next to nothing. The creation of an additional supply of its own was neglected, with the result that within a week of the sanctions against Russia, price increases had to be implemented and liquefied gas had to be imported by boat from the United States, although Russian LNG will still arrive at Dutch terminals in 2025, particularly in Rotterdam. Now that the German state has nationalized the German branch of Gazprom, Dutch public institutions did not have to cancel their gas contracts with that company. Dozens of municipalities and other institutions did so, because the Ministry of Economic Affairs insisted on it. This will cost the state tens of millions in compensation this year. The government wants to build two new nuclear power plants and this will require 3 to 9.5 billion euros more than the five billion euros that had already been reserved. In addition, the government set aside some 783.5 million euros at the end of 2022 for financial support for hydrogen projects and another s 250 million in 2023. In the Spring Decision-making 2023, an amount of €65 million was reserved for the SMR programme, up to and including 2030. In the EZK budget treatment for 2024, the expenditure amount for 2024 was increased to €10 million by amendment and the remaining available space was fully reserved. These are only the preparatory costs for a vision on nuclear energy. For the Palla isotope reactor, the European Commission approved 2 billion in state aid.
Since 2018, the Netherlands has been a net importer of natural gas, which costs the Netherlands billions. From 2014, local gas extraction was gradually reduced under pressure from the population in order to reduce the number of earthquakes in the province of Groningen. Minister Wiebes (Economic Affairs) concluded a deal with Shell and ExxonMobil for the financial settlement of the closing of the gas tap in Groningen. The gas deal cost the Dutch State almost 3 billion euros. After deduction of corporate income tax, this amounted to a net amount of 1.6 billion euros. In 2022, a parliamentary inquiry into the matter followed, which concluded that the State and oil companies Shell and ExxonMobil have earned hundreds of billions from gas extraction for six decades at the expense of damage and pain to the local population. In 2023, an additional 10 billion euros will be needed to accelerate the repair of the damage in Groningen. An extensive package of measures is needed to repay the ‘debt of honour’ to Groningen and North Drenthe. The IMG plans to roll out two other compensations in Drenthe in the future. These are a compensation of up to 60,000 euros for the actual repair of damage and compensation for customization. A total of more than 22 billion euros has been reserved for solving the problems resulting from gas extraction. Of this, 8.7 billion is for existing plans and 13.5 billion ‘new money’. Residents of Drenthe with damage caused by earthquakes in the Groningen gas extraction area can receive a one-off fixed compensation of 10,000 euros. The cessation of gas extraction in Groningen was temporarily blocked by the Senate. BBB, VVD, PVV, JA21 and 50Plus first want more clarity and certainty in order not to leave a door ajar. On 16 April 2024, the Senate finally approved the law that officially ends gas extraction in the earthquake area.
The security of gas supply will therefore remain risky in the coming years.
The Mining Council is an independent advisory body to the Minister of Climate and Green Growth.
The Netherlands is politically and economically susceptible to blackmail due to its great dependence on American liquid gas (LNG). This is the conclusion of the Mining Council in an advisory report on the security of gas supply. The gas pipelines from Norway are also vulnerable to sabotage and there is a threat of a shortage of storage capacity in the Netherlands.
The Groningen field is being sealed off and gas production in the North Sea is declining. These factors are making the Netherlands increasingly dependent on gas from abroad.
Meanwhile, there is discussion about the large gas storages in the Netherlands. There is also talk about the need for a ‘national reserve’ for gas, like there is for oil and diesel.
At the moment, a third of the gas still comes from our own (sea)bed. This concerns almost ten billion cubic meters of the thirty billion cubic meters of gas that we consume annually. The remaining 20 billion cubic meters are imported.
Since the boycott of Russian gas, 27 percent of imports come from the United States. The gas is transported in liquid form (LNG) by tankers to Rotterdam and Eemshaven. “This creates a new risk, namely the possibility that the US uses its gas exports as economic or political leverage,” the Mining Council writes in the advice.
The Netherlands imports so much LNG that the US has no trade deficit but a trade surplus with the Netherlands. The Netherlands has exchanged its dependence on Russia for dependence on the United States.
Another major supplier of gas to the Netherlands is Norway. There are pipelines to Belgium and the United Kingdom and two pipelines to Germany, which are connected to the Netherlands. This infrastructure on the bottom of the North Sea could become part of the conflict that Europe has with Russia. Russian spy ships have been mapping cables, pipelines and other infrastructure in the North Sea for a number of years. Destroying gas pipelines and electricity cables could leave Europe in the dark and in the cold.
Meanwhile, the yield from the so-called ‘small fields’ in the North Sea is decreasing every year. The amount of gas we have to import is therefore increasing every year. After the Russian invasion of Ukraine and the enormous price increases of gas in 2022, gas consumption in the Netherlands fell from 40 to 30 billion cubic meters. Since then, consumption has been constant. This despite the government’s efforts to further reduce gas consumption by households and companies.
“The current rate of reduction suggests that the Netherlands will remain dependent on natural gas for longer than previously thought,” writes the Mining Council. The Netherlands has gas storage facilities in Norg, Grijpskerk and Alkmaar, but these are privately owned. This means that commercial interests play a role in the storage in and sale from gas storage facilities.
Now that the Groningen field has been closed, the use of the NAM gas storage is also under discussion. That is why there is also a plea for a national gas reserve. This means that the government, just like with oil, creates its own stock.
The Mining Council concludes that there is currently no organisation with a clear management role to guarantee the security of gas supply. Energiebeheer Nederland (EBN) should take on this role, the council proposes. EBN already participates on behalf of the government in all oil and gas extraction projects. During the energy crisis in 2022, EBN also ensured that the prescribed filling levels in gas storage facilities in the Netherlands were increased.
Multinationals leave
Multinationals are sold out to foreign investors or leave. For example, soft drinks bottler Refresco was acquired by French and Canadian investors for 1.6 billion euros, the Enschede IT company Caase.com by the American multinational Insight EMEA and Vanderlande Industries for 1.2 billion to Toyota Industries. Ziggo (Liberty Global), Kruidvat (AS Watson Group), de Ruyter, Douwe Egberts (Sara Lee), Grolsch (Asahi), Gansewinkel (Shanks), Connexxion (Transdev), Numico (Danone), Hoogovens ( Tata Steel ), Van Leer (American concern Greif) VNU, TMG, KLM, DSM, Océ, IAI, Stork, Liteq and Reaal have all fallen into foreign hands. AkzoNobel (American investment company Carlyle and the Singaporean investment company GIC). After Essent (Innogy), Nuon (Vattenfall), Eneco was also sold off to Mitsubishi and Chubi Electric Power. Paint and coating manufacturer AkzoNobel recently announced which factories it will close. These are the factories in the Gelderland town of Wapenveld and in the Belgian Machelen, with a total of 273 employees. The intervention is part of a ‘multi-year industrial transformation plan’, the company states. In addition AkzoNobel wants to move production to other countries. The company behind brands such as Flexa and Sikkens announced a restructuring program last year.
Snack manufacturer Van Geloven, known for the brands Mora and Van Dobben, will close three factories in the Netherlands and Belgium in the course of next year. The plan will affect 142 employees, of whom 67 in the Netherlands and 75 in Belgium. The three other larger production locations in Tilburg, Helmond and Maastricht will remain open.
The NXP chip factory in Nijmegen, with approximately 1,700 employees, will also close in the long term (expected around 2037) as part of a strategic restructuring. NXP is focusing on more modern production facilities in Singapore and Dresden, which use more efficient 300 mm wafers instead of the outdated 200 mm wafers in Nijmegen. The closure, together with three American factories, should reduce costs and increase margins. Although the factory will remain operational for another ten years, the announcement on May 21, 2025 and the subsequent reporting caused local unrest, with politicians calling it “dramatic” and advocating to retain jobs and R&D in Nijmegen.
ASML will remain in the Netherlands for now, but CEO Christophe Fouquet emphasizes that clarity is needed within 2-3 years on issues such as nitrogen regulations and infrastructure. A multi-billion plan to keep ASML in the Netherlands is at risk of getting stuck, causing local unrest. Investments: ASML invests worldwide, such as €2.62 billion in its Taiwanese subsidiary Cymer for laser equipment and maintenance, but is struggling with geopolitical tensions due to trade tariffs.
Philips has been hit hard in recent years by problems with respiratory equipment (recalls due to health risks) and a declining stock market value. In 2024 and 2025, Philips is undergoing a transformation, focusing on healthcare technology and cost savings. Philips has also had to cut jobs worldwide, including in the Netherlands. Although Philips is not closing immediately, the group remains vulnerable due to persistent losses and the need to restructure in order to remain competitive.
Other large Dutch companies are also facing challenges, such as takeovers, restructurings, or market pressure:
- DSM-Firmenich
DSM, once a Dutch chemical company, merged in 2023 with Swiss Firmenich to form DSM-Firmenich, a global leader in nutritional ingredients and fragrances. The company has production and R&D facilities in the Netherlands, but is now Swiss-owned. The merger brought integration problems, and DSM-Firmenich has to compete in a market with high innovation costs. Job losses in the Netherlands are possible with further rationalization. DSM’s Dutch identity and autonomy have been diluted, and future restructurings could affect local activities. - KLM (Air France-KLM)
Situation: KLM, part of Air France-KLM for many years, is struggling with high costs, competition from low-cost carriers, and pressure to become more sustainable. Reorganizations and cost savings have been announced for 2024 and 2025, including job losses. The aviation sector is sensitive to fuel prices, geopolitical tensions, and environmental requirements. KLM ’s hub at Schiphol is threatened by capacity restrictions and nitrogen regulations. Further integration with Air France or cost savings will eventually lead to a smaller role for KLM in the Netherlands - Shell , headquartered in The Hague, is under pressure from the energy transition, lawsuits over climate targets, and shareholders demanding cost savings. In 2024, Shell already moved some activities to the UK and the US. The transition to sustainable energy requires huge investments, while the oil and gas market remains volatile. Shell has already cut jobs in the Netherlands. Shell is considering moving its headquarters entirely out of the Netherlands if the fiscal and regulatory environment deteriorates, which would be a huge blow.
- Unilever, with a historically Dutch-British base, has been headquartered in London since 2020 but retains major operations in Rotterdam. The company faces cost-cutting and shareholder pressure to divest divisions (e.g. ice cream, like Ben & Jerry’s). Competition in consumer goods, inflation, and the need to become more sustainable are putting pressure on margins. Job losses in the Netherlands are possible as restructuring continues. Unilever’s Dutch presence has been reduced, and further divestments could further reduce its Dutch operations.
- Tata Steel in IJmuiden is under pressure due to high energy costs, sustainability costs, and a planned reorganization. In 2024, there was talk of possible job losses and a partial closure of blast furnaces to switch to green steel. The steel industry is capital-intensive, and the transition to CO2-neutral production requires billions in investments. Tata Steel is dependent on government support. If the transition fails or if Tata Steel opts for cheaper production locations elsewhere, IJmuiden could (partly) close.
Government expenditure
The total expenditure of the government in 2024 should technically be 425.1 billion and the budget is therefore significantly exceeded by 32 billion euros, excluding the additional expenditure and setbacks. A great deal of expenditure had to be carried forward over the budgets of the coming years in order to balance everything and is therefore included as “pm items”. The State must compensate disadvantaged wealthy people for overpaid tax in box 3 and that amount could well rise to around 12.5 billion euros. This is the verdict of the Supreme Court. The compensation means a billion-dollar loss for the cabinet and major budgetary consequences and consequences for the implementation by the Tax Authorities. The Tax Payers’ Association had filed this case with 60,000 co-plaintiffs and the Supreme Court has now ruled on this one specific case. However, based on this ruling, the Tax Authorities must now also consider the other objections. The cabinet’s plan to introduce a completely new tax method is a bad plan, according to the Council of State.
The cabinet has already released money to meet the NATO standard. Dutch spending on Defence until 2026 must then exceed 2 percent. In 2024 it will be 2.15 percent, in 2025 2.05 percent and in 2026 it must be 2.22 percent. The caretaker cabinet also agreed to an even higher NATO standard equal to 5 percent of the gross domestic product (GDP). This means that the Netherlands must spend up to 19 billion euros more on defence each year. Schoof states that there is no phase-in path and that the standard must not be met until 2032 and that NATO does not set interim targets. ‘Countries are free to determine their phase-in path’, Schoof indicated.
The army is buying rocket artillery to hit targets at a distance of 70 kilometres. The State Secretary for Defence is investing billions and hopes that this can be delivered by the end of next year. This involves an amount ‘of 250 million to 1 billion euros’. Van der Maat also wants a new mobile air defence system that can better protect against threats from enemy helicopters, aircraft, drones and cruise missiles. This will cost between 1 and 2.5 billion euros. The Dutch army will also get its own tank battalion of around fifty tanks. It costs between 260 and 315 million euros per year to have a tank battalion. According to NATO standards, a tank battalion consists of 44 tanks with another eight for training and logistical reserve, among other things.
The 457 billion euros in expenditure concerns:
- 114.9 billion euros for social security
- 114.6 billion euros for healthcare
- 53.4 billion euros for education. The government is investing 160.5 million euros of this in seven major research projects at Dutch universities
- 53.4 billion euros to Provinces, Municipalities and VAT compensation fund
- 22.35 billion euros for the consequences of gas extraction, of which 8.8 billion euros for the high repair costs of subsided houses in Groningen
- 19.4 billion euros for defense, but the aim is for 40 billion euros
- 16.6 billion euros for justice and security
- 14.1 billion euros for Infrastructure and Water Management
- 11.4 billion euros for Foreign Affairs and international cooperation
- 8.9 billion euros for Housing
- 8.7 billion euros to interest
- 7.3 billion euros to Ukraine, of which 3.5 billion in 2025
- 7 billion euros net contribution to the EU
- 7.1 billion euros for Finance
- 5.6 billion euros for asylum and migration
- 4.7 billion euros for Agriculture and nature
- 3.6 billion euros for Home Affairs and Kingdom Relations
- 3.6 billion euros for Climate and Green Growth
- 3.2 billion euros for Economic Affairs
There are also some “incidental” items, some of which have already been included in the spring memorandum:
- 19 billion euros for an investment loan to Tennet
- 15 billion euros for forced or non-forced accelerated buyout of farmers after the court ruling on the Greenpeace case in early 2025
- 14 billion euros to resolve the benefits affair (of which 2.3 billion via the Laurentien/Stichting Gelijkwaardig herstel)
- 14.1 billion euros for new nuclear power plants
- 10 to 12.5 billion euros for correction of the box 3 assessments
- 5.7 billion euros to the budget of the Ministry of Foreign Affairs because EU contributions are increasing, with part of VAT revenues also being paid.
- 8.5 billion euros for the outstanding pensions of military personnel
- 5.7 billion euros for bad debts, tax arrears ( Corana )
- €4.6 billion to the permanent ESM emergency fund in addition to the €41 billion in guarantees that have been issued.
- 4.1 billion euros and then billions annually for compensation to taxpayers due to excessively taxed box 3
- 4 billion euros over five years for projects in education, research and development, sustainability and infrastructure to strengthen the economy
- 3.8 billion euros for deficit on benefits and civil servant salaries
- 3.5 billion euros to Ukraine due to loss of US support
- 3 billion euros to tackle the nitrogen crisis . Almost 1.3 billion euros will be allocated to the plans that provinces have already submitted. 1.45 billion euros will be allocated to the voluntary purchase scheme for livestock farmers. Both the House of Representatives and the Senate must agree to the proposal for this billion-dollar investment.
- €3.2 billion in addition to the €16 billion already provided in contributions and guarantees for Greece ’s emergency funds
- 3.2 billion euros to municipalities for compensation for, among other things, their emergency shelters for refugees from Ukraine
- 3.2 billion euros extra for NATO (an additional 100 billion euros is being requested from the 32 member states)
- 2.5 billion euros for Brainport Eindhoven, the home base of ASML. 1.7 billion euros from the government (National Growth Fund) and 800 million euros from the region
- 2.5 to 3 billion euros in subsidies for Tata Steel ’s greening plans up to 2030
- 2.3 billion euros to the additional budget for the allowance recovery operation
- An additional 2 billion euros per year to support vulnerable households
- 2 billion euros for the construction of the Pallas reactor in Petten
- 1.73 billion euros to chip machine manufacturer ASML for housing, education and infrastructure. In 2023, 230 million euros also went to ASML
- 1.7 billion euros to foreign funds that do not have to pay corporate tax on their Dutch real estate investments afterwards
- 1.6 billion euros extra to benefits agency UWV, which expects the total amount of benefits to increase this year. The benefits (168,000) are increasing due to the large numbers of migrants
- 1.54 billion euros for leading measures in the region, including the sustainability of livestock farms or nature restoration that can be implemented quickly
- 1.5 billion euros for setback in motor vehicle tax rate reduction for electric cars
- An additional 1.5 billion euros for farmers who need to be bought out, and Adema added another ‘billion-dollar package’ for the manure problem
- 1 billion euros to Invest.NL
- 1 billion euros structurally to a major foundation problem . 425,000 buildings are already sinking or are sinking within ten years. If all advice is followed, this will cost a total of 12.5 billion euros over the next twelve years . Otherwise, the damage could amount to 54 billion euros
- billions extra to the tax authorities for a staff shortage due to the allowance affairs and the ability to collect deferred ( Corona ) tax payments
- tens of billions of euros structurally to funds outside the budget. The Future Fund, the Defense Material Budget Fund, the National Growth Fund, soon also the Climate Fund and the Transition Fund Rural Area and Nature (also known as the nitrogen fund). There are now more than 26 funds in all shapes and sizes. No one knows exactly how many funds there are and how much money is in them . From 2025, an additional 35 million euros will be added to the heat fund annually from the Climate Fund ,
- Tens of billions of euros extra for defense and Ukraine. On top of the 2 billion euros announced for military support for 2024, the government has decided to make an additional 3.5 billion euros available for the period 2024-2026. With this, the Netherlands has been supporting Ukraine with approximately 10 billion euros since the outbreak of the war.
- Tens of billions of euros extra for overdue maintenance of bridges, tunnels and viaducts and dike reinforcement. (See below)
- Tens of billions extra to the electricity grid (Tennet) due to the energy transition
- Net expenditure on Social Security will increase by approximately EUR 8 billion between 2024 and 2029. This increase is mainly caused by the expected increase in expenditure on the AOW and the Unemployment Act by approximately EUR 4.5 and 1.5 billion respectively.
- 900 million euros to affected investors of nationalized SNS REAAL
- 900 million euros for sustainable built environment
- 843.6 million euros for the renovation and conversion of the Binnenhof in The Hague (the entire operation will cost 2 billion euros). Part of the money comes from the Investment Impulse for Road Safety, with which the government has made 500 million euros available between 2020 and 2030. The Binnenhof has a surface area of almost 90,000 m2 and contains 4,000 rooms and is a collection of historical, but also dilapidated buildings, the oldest of which date back to the 14th century. The water from the Hofvijver flows into the Senate in some places and much more asbestos has been found than expected
- An additional 770 million euros over the next 10 years for the restoration of national monuments such as churches, monasteries, mills, lighthouses and farms with cultural-historical value
- 697 million euros extra to EU due to post-calculation
- 429 million euros for increase in childcare allowance in 2025 for first children
- 400 million euros due to partial failure of deal to sell Tennet to Germany, which was budgeted for 100%
- 380 million euros for the development of the hydrogen network at sea
- 375 million euros for setbacks in the renovation of the lock in the Afsluitdijk
- 320 million euros extra EU contribution because the gross national income of the Netherlands is higher than previously thought.
- 300 million euros to the European Commission due to insufficient payment of import duties on solar panels from Taiwan and Malaysia and for textiles and shoes from China
- 250 million euros in subsidies for seven hydrogen projects
- 250 million euros structurally for 30 years to give residents and companies in Groningen a perspective for the future (see below)
- 244.3 million euros for the Regional Deals, improving the so-called broad prosperity
- 237.65 million euros in support for young farmers (part of EU money)
- 230 million euros for the cancellation of public debts by fellow authorities, in connection with the consequences of the childcare allowance affair. For 2024, the budget amounts to 160 million euros
- 226.9 million euros for tackling PAS reporters
- 216 million euros for promoting security, stability and the rule of law in an international context
- 210 million euros for the quality of life in the regions where electricity from offshore solar parks comes ashore
- 200 million euros or more due to wrongly imposed corporate income tax between 1997 and 2009 Real Estate Special Assets
- 200 million euros for justice to put the prison system in order
- 166 million euros on the costs of MH17, which was shot down in 2014 after ignoring a warning. Costs of citizens and companies are not included in this
- 155 million euros for the judiciary
- EUR 148 million (2024) and EUR 252 million (2025) from general resources to the BHOS budget for non-military support to Ukraine
- 148 million euros to stimulate Dutch manufacturing industry and climate-neutral economy
- 141 million euros in subsidies for red diesel
- 140 million euros structurally allocated to higher expenditure on pharmacy care to improve the prison system, 4 million is intended for a new prison.
- 124 million euros for the accelerated realization of 19,681 new-build homes
- 111.5 million euros for the scheme for the stimulation of construction and maintenance of sports facilities (BOSA scheme)
- 100 million euros for the electrification of train connections in Overijssel and Gelderland
- 88 million euros to Gaza Since the attack of 7 October 2023, the Netherlands has made an additional 55 million euros available for the humanitarian response, in addition to Dutch support for the maritime corridor and participation in air drops. The Netherlands also set aside EUR 20 million for the future reconstruction of Gaza. Due to the ongoing crisis in Gaza and the enormous humanitarian needs, the government is making additional resources of EUR 13 million available from the BHOS budget.
- 84 million euros for the Temporary Emergency Energy Fund). More than 85,000 people have already applied for support. Energy suppliers are investing 8 million euros in the fund.
- 75 million euros for organizing the NATO summit in the Netherlands
- 70 million euros for forest fire management
- 70 million euros for the National Fund for Affordable Homes
- 68.4 million euros per year for Delta Climate Center knowledge center
- 66 million euros extra for rent allowances. There is an urgent need to repair purchasing power for the lowest incomes because an error was made in the calculation for 2024
- 44 million euros to an additional leniency scheme for water damage in Limburg. The scheme is for 2024 and 2025
- 43 million euros for youth protection, to reduce the workload for professionals in youth protection and to attract more new staff and retain current staff. From 2025, the government will structurally allocate 50 million euros annually for youth protection
- 40 million euros to strengthen services in the area of debt and poverty
- 40 million euros for 36 projects of the so-called LLO Catalyst from the National Growth Fund
- Cancelling 36 million euros of the new construction plans for the merger of the AIVD and MIVD in The Hague. On 16 November 2023, the heads of the MIVD and AIVD service indicated to the SGs DEF and BZK that the expected investment costs for the AIVD and MIVD Cohabitation (SAM) project programme would be exceeded by 86%. As a result, both SGs decided to stop this project.
- 30 million euros for the Regenerative Medicine Research Projects (SRGO) Subsidy Scheme
- 30 million euros for subsidies for political parties
- 26 million euros to locomotives that were used to replace the failed high-speed trains. The bill went to the Ministry of Infrastructure and Water Management, which also has to pay the damage for the years after 2019, until the offending locomotive is no longer used. This amount is estimated by Infraspeed at 24 million euros
- 23.1 million euros for additional subsidy for the purchase of electric second-hand cars (total now 52.5 million)
- 22.4 million euros for the subsidy scheme for sustainability and maintenance of rental properties (SVOH)
- 20 million euros for wrongfully obtained GMO subsidy from the EU
- 20 million euros to, among other things, the VNG and the introduction of a BSN number in the Caribbean Netherlands
- 20 million euros in incidental energy support to Ukraine for the year 2024
- 18 million euros for implementation of tasks on Bonaire, Saba and Sint Eustatius, 5 million more than previously budgeted
- 16 million euros for the National Aliens Facility (LVV) pilot
- 15 million euros for name change LNF and setting up 3 additional ministries
- 15 million euros (donated by caretaker Prime Minister Mark Rutte) to the new climate damage fund of the climate summit in Dubai. The 15 million euros is only intended as starting capital to set up the fund. After that, the Netherlands will look further and it will be on top of the 900 million euros that the Netherlands will invest in climate financing from 2025
- 12 million euros annually to NATO for membership
- 10 million euros for emergency aid for famine in Sudan. The money is intended for food aid to the Sudanese population and goes to the World Food Programme
- 10 million euros extra to increase subsidy to Dutch Refugee Council
- 10 million euros for combating and preventing bird flu
- 10 million euros extra for language education for displaced people from Ukraine
- 10 million euros for food aid by sea for Gaza and another few million to the Royal Netherlands Air Force, which is sending a helicopter detachment and a 120-man detachment plus three Chinook helicopters plus two naval vessels (Zr.Ms. Karel Doorman and Zr.Ms. Tromp) to the Red Sea and the Suez Canal
- 8 million euros for one-off furnishing costs for the new government location in 2024
- 7 million euros structurally for subsidies to companies that make plastic products and to investigate how they can use more circular plastic
- 6 million euros in 2024 decreasing to 4 million euros in 2026 for ICT project AZ-next and for management and maintenance of the new document management system (DMS), additional facilities at the data center and further professionalization of the ICT infrastructure
- 4 million euros to Moldova for Dutch support of the European Union Partnership Mission
- 4 million euros for humanitarian aid in Lebanon on top of the 10 million euros already provided
- 3 million euros for an increased contribution to the international anti-terrorism academy in Abidjan (Ivory Coast) for the next 3 years to support the fight against terrorism in West Africa.
- 2 million euros per year for the return move to the Binnenhof
- 3 million euros for mpox virus vaccines in African countries
- 1.5 million euros to Gaza victims in Egypt for the purchase of medical supplies from suppliers in the geographical region of Egypt
- Millions must go to the financial compensation of Shell and ExxonMobil due to an impending arbitration case against the Dutch state
There has recently been a tax advantage for foreign real estate investors in the Netherlands, in particular due to a ruling by the Supreme Court on 1 June 2025. This ruling concerns German real estate funds, organised as so-called Sondervermögen, which, according to the court, are not liable for tax in the Netherlands. This means that these funds do not have to pay corporate income tax on their Dutch real estate investments, resulting in an estimated refund of 1.7 billion euros in previously paid taxes.
There is a huge backlog of maintenance on the 141,000 km of roads, 5,700 km of waterways, 7,000 km of railways and tens of thousands of bridges, tunnels and viaducts. Hundreds of locks, bridges and viaducts need to be renovated. A large part of them were built shortly after 1950 and are in urgent need of maintenance and renovation . Research institute TNO expects that the costs of the 347 billion euro operation will increase from 2.4 billion to 3.7 billion euros per year towards the year 2100. The total costs of the renovation amount to around 260 billion euros . Municipalities and construction companies will contribute more than half of this , with the costs then doubling to 1.3 billion euros per year to 1.8 billion from 2031. This year, lanes are already at risk of having to be closed due to the risk of collapse , municipalities are demanding hundreds of millions of euros extra for roads and infrastructure. During the construction of bridges and viaducts in the 1950s and 1960s, hydrogen got into the steel, making it vulnerable to corrosion. This process (hydrogen embrittlement) can cause hairline cracks in the steel incorporated in the concrete of the bridges. This weakens the structure and can in some cases lead to a risk of collapse. The research by Rijkswaterstaat shows that thirteen bridges and viaducts in the Netherlands, completed between 1957 and 1969, are vulnerable to hydrogen embrittlement. In addition, there are four viaducts (managed by the municipality of Rotterdam and the province of Overijssel) that are at risk of hairline cracks, because they were built with prestressing steel. The Van Brienenoord Bridge in Rotterdam alone will cost around 1.5 to 2 billion euros.
Because the economy is lagging behind due to the Corona epidemic , approximately 215 million was paid too much for 2022. Of the 18.9 billion euros for government personnel, 2.6 billion went to freelancers or temporary workers, 700 million more than intended.
The State must repay 22 million in wrongly obtained Common Market Organisation (CMO) subsidies to the EU. The government disagrees with the recovery and is taking the matter to the European Court.
Between 2010 and 2012, the Netherlands wrongly awarded approximately 53 million euros in subsidies to the horticultural cooperative FresQ. The state has already repaid approximately 33 million euros, but the European Commission also wants the remaining 22 million euros including interest back. The conflict has been going on for 11 years and FresQ has since gone bankrupt. In July 2024, it was announced that the Netherlands had to repay the full amount, and the recovery is still ongoing. In November 2024, buildings belonging to tomato grower Kaaij Brothers, a subsidiary of FresQ, were seized. The state is claiming approximately 50 million euros. According to Dutch authorities and supervisors, FresQ presented itself as a collaboration of horticulturalists, while in practice it was just one company.
Municipalities receive €138.6 million more from the State for benefits for welfare recipients and wage cost subsidies (LKS) There are now 406,000 people receiving welfare, mainly due to the new status holders. The provisional macro budget for 2025 amounts to €7,478.7 million. The provisional budget for 2025 for general welfare benefits, IOAW, IOAZ and bbz benefits is €63.5 million higher than the final budget provided for these schemes for 2024. The provisional LKS budget for 2025 is €75.1 million higher than the final LKS budget for 2024 due to the growth of the LKS target group and the new financing system. On balance, the provisional macro budget for 2025 is €138.6 million higher than the final macro budget for 2024.
The final macro budget for 2024 amounted to €7,340.2 million. This macro budget was set at €381.7 million higher than the provisional macro budget for 2024 (which was estimated at €6,958.5 million). The final macro budget for 2024 is €682.1 million higher than the final macro budget for 2023 (which was €6,658.1 million).
Setbacks that have been kept outside the budget
- There is a huge deficit for the government’s plans for the construction of the so-called Lelylijn. Three billion euros were made available for the railway line from Lelystad to Groningen, but the costs are between 8 and 21.4 billion euros. The construction of the Lelylijn must be continued, whereby construction would start in Groningen according to the outline agreement if this were technically possible. A proposal is being made for cross-border rail transport, including the connection of five train stations to international HSL lines (e.g. Hengelo, Venlo, Heerlen, Groningen and Zwolle). All these deficits had already been announced to the coalition. The Provinces of Groningen, Friesland, Drenthe, Overijssel and Flevoland recognise these problems and are prepared to make a financial contribution of 10 million euros for the Lelylijn and another 5 million euros for the Nedersaksenlijn.
- The Lower Saxony line between Enschede and Groningen will cost 1.7 billion euros instead of the reserved 86 million euros
- There is also significantly less excise duty revenue on tobacco products of approximately 100 million euros due to purchases by users abroad
- The UWV has also charged tens of thousands of people for years a disability benefit that is too high or too low. The recovery and compensation will cost many millions
- Greenpeace is taking legal action against the State over the nitrogen approach. The costs for the State could rise to 15 billion euros in the event of a negative ruling
- For the permanent emergency fund ESM, 41 billion euros in guarantees were issued. In the future, if things go wrong, this will result in a cost item of at least 77.8 billion euros
- The Groningen gas extraction has stopped, but the consequences are great. In order to give residents and companies a perspective for the future, a generation-long social and economic recovery and sustainability are needed. The government has previously made €250 million per year available for this for the next 30 years. In addition to this financial commitment, the law stipulates that IMG will repair damages up to €60,000 without looking at where the damage comes from.
- Early September 2024 it emerged that the UWV had been making incorrect calculations for years when determining the amount of WIA benefits (Work and Income according to Capacity Act). According to the AD, the errors have been made since 2006. The amount of the benefit is determined on the basis of a so-called daily wage. This is the wage that employers report to the tax authorities. Mistakes are regularly made when determining the daily wage and then the amount of the benefit is paid on the basis of an incorrect amount. The UWV itself estimates that around 84,000 benefits will have to be reviewed. The implementing agency wants to start with 53,000 files, because those people are still receiving a WIA benefit. The other 31,000 files are from people who no longer receive a WIA benefit, because they have died, retired or the benefit has stopped. These files will be checked later. In a quarter of the benefits, a benefit that was too high or too low was determined. The UWV says that it already knew in 2023 that the determination of benefits was not always correct. The UWV is starting an in-depth investigation to find out who has received too low or too high a benefit since the beginning of 2020. That investigation will probably be completed in December of this year. The investigation focuses specifically on the determination of WIA benefits. The UWV also arranges the payment of benefits for the Wajong and the WW. The spokesperson says that the agency can also investigate in the long term whether errors were made in calculations. People who receive too low a WIA benefit will be compensated for this retroactively up to four years ago. That group can be very large, because up to 80,000 people are assessed by the UWV every year to see if they qualify for a WIA benefit. If tens of thousands of people can expect that compensation, it could cost the UWV millions. Legal proceedings surrounding the WIA have not cost the UWV 29 million, but at least 61 million euros since 2021. The House of Representatives was not fully informed about this.
- The EU sends 4.5 billion euros per year to Turkey, Greece and other Southern European countries to stop the increasing flow of refugees . Due to Brexit, the Netherlands will have to pay more than 400 million euros per year to the European Union. The EU already costs the Netherlands around 2.5 billion euros net per year and Brexit another almost 3 billion euros . The recently concluded pension agreement will cost the treasury more than a billion euros . Around 150 million euros per year has been budgeted for tackling undermining crime since 2021. The budget for the Ministry of Justice and Security was already increased by 316 million euros in 2021. More than 8.5 billion euros must be set aside for parents who must be compensated for the allowance affair and 11.5 billion euros for the problems in Groningen. For the time being, there is talk of at least 17 billion euros in cuts, but that will not be nearly enough.
- The Nature Restoration Act requires many adjustments and restoration of nature due to already installed, but also planned solar parks and wind turbines. Costs still unknown
- The State must compensate disadvantaged wealthy individuals for overpaid tax in box 3, and that amount could rise to around 10 to 12.5 billion euros. There is still a lawsuit pending on the question of whether non-objectors should also receive box 3 tax back for the years 2017 to 2020.
- The Dutch government risks a multi-billion dollar claim from the Canadian company Vermilion Energy if it decides to stop gas extraction in small gas fields.
- The foundation pensioenVoldoen.nl claims retroactive compensation for 250,000 pensioners. Pensioners and participants in pension funds have suffered some 136 billion euros in damages because pensions were not compensated for inflation for decades.
Defense
The location in Staphorst appears to be the most suitable for the additional location for large-scale ammunition storage. Zeewolde-Spiekweg is the preferred location for the centrally located barracks for support units. Lelystad Airport is the preferred location for the stationing of fighter aircraft, based on military co-use at a civil airport. It also turned out that a need of Defence cannot be realised in the Netherlands. No suitable location was found for a new explosives training area. For the expansion of, for example, the Weerterheide training area, several areas in Cranendonck and Weert have been designated as preferred locations. And that also applies to the expansion of the Artillery Shooting Camp for several areas in various municipalities in the province of Gelderland. All preferred locations can be found in the Draft NPRD. Within the Ministry of Defence, voices are being raised to structurally double the defence budget from 21 to 40 billion euros. The Ministry of Defence had to acknowledge that the Dutch fleet suffers from “material problems”. The four air defence and command frigates of the Dutch fleet cannot be deployed properly due to technical problems and a shortage of parts. With a share of 1.35 percent, the Netherlands is below the NATO average of 1.47 percent. The United States is demanding a considerably higher contribution of up to 4 percent at the NATO summit in Brussels and wants outstanding payments to be settled. In the meantime, the Netherlands also wants to have four submarines built for the Royal Netherlands Navy for 4 to 6 billion euros, 6 amphibious transport ships for 1 to 2.5 billion euros and another 4 frigates that will cost 5 billion when armed. Since the State Treasury will not be able to provide for this due to the many other setbacks and skeletons in the closet, an appeal is now being made for financing and pressure is being exerted on the pension funds. The war financing by the Netherlands also goes to Sudan, where Ukraine is sparring with the Russians for dictator Omar al-Bashir.
Ukraine support overview
The Netherlands provided Ukraine with 25 YPR armoured tracked vehicles for transporting wounded people, 24 F-16 fighter jets with air-to-air missiles and 80 million euros worth of maintenance materials such as generators, spare parts, essential maintenance materials and special tools for this purpose. Previously, Ukraine received from the Netherlands: 1 T-72 tank, 1 YPR 765 armored tracked fighting vehicle, 1 YPR-806 A1 PRB, 1 YPR recovery vehicle, 1 Fennek reconnaissance vehicle, 29 Viking tracked vehicles, 1 Leopard 1 A5 main battle tank, 1 Leopard 2 A4 tank, 1 armored howitzer, 1 firing 120mm mortar, 1 Patriot launcher, 1 Stinger, 1 MAG machine gun, 1 mini-machine gun, 1 machine gun on an MB all-terrain vehicle, 1 precision rifle, 1 long-range rifle, several ammunition boxes with small-caliber cartridges, several drones, 1 Squire radar, 1 VERA-NG passive radar, 1 VERA-NG passive radar, 1 helmet with night vision goggles, 1 Bailey bridge, 1 Leopard 1 bridge-laying tank, 1 DAF YAI-4442, 1 Bushmaster Truck, 1 DAF TROPCO 650kN, 1 tractor-trailer combination, 1 M3 bridge and ferry system, 1 Amarok all-terrain vehicle, 1 ambulance, 1 KTM motorcycle, 1 Scanjack mine clearance system, 1 Bozena mine clearance system, 1 EOD equipment, the Zr.Ms. Zierikzee, 1 mine hunter, spare parts, 1 crane, 1 shovel, 1 forklift, clothing, ration packs, 14 rigid inflatable boats, 8 militarized river patrol boats, CB 90 combat boats, medical supplies, 62 combat vehicles, YPR, fire support systems, M109 Howitzers (donor), individual weapons, such as rifles and machine guns, such as MAG and Minimi machine guns and HK416 rifles, various types of small caliber ammunition for individual weapons and heavy ammunition for tanks and artillery (including 155mm). rifle grenades and (non-)lethal hand grenades, sensors and observation equipment, various (mobile) radar systems and VERA-NG radar systems, 10 tractor-trailer combinations, 241 trucks, quads (18), 19 vessels, 6 field hospitals, 8506 tents and accessories, generators, spare parts for various types of vehicles and (weapon) systems, logistical material, 16 trailers, 6 flat track cranes, 9 shovels, 6,600 field fortifications (6,600), personal equipment, including clothing, helmets, flak jackets, rations, medical supplies, such as personal first aid kits and medicines, and fuel. In April, another 200 million euros worth of additional equipment was transferred. With this, the Netherlands itself falls below the minimum requirements for operational readiness and international obligations . Some of the hundred tanks it received from the Netherlands, Germany and Denmark in 2023 were rejected by Ukraine because the equipment was so outdated that they were unusable for them. They were tanks from the sixties and seventies that needed a lot of modifications. Since the outbreak of the war in Ukraine in 2022, the Netherlands has also made approximately 3.7 billion euros available directly, mainly forammunition deliveries and weapon systems , such as tanks and Patriot missiles and associated spare parts and ammunition worth 150 million euros. Furthermore, the government is releasing 200 million euros for the purchase of drones for reconnaissance missions. The Netherlands provided a guarantee for the 50 billion euros donated to Ukraine (NextGenerationEU (NGEU). The EU lent 50 billion euros to Ukraine (NextGenerationEU NGEU). The Netherlands is the guarantor for this.
In the Spring Memorandum, the Cabinet decided to make an additional 4 billion euros available for Ukraine for the period 2024-2026, on top of the previously announced 2 billion euros that the Cabinet had made available for 2024 (Parliamentary Paper 36 550, No. 1). Total expenditure is even slightly higher at 4.5 billion euros. With this, the Netherlands has been supporting Ukraine with approximately 10 billion euros in military aid since the large-scale Russian invasion on 24 February 2022. The Netherlands has allocated more than 200 million euros for additional artillery ammunition and air defence in Ukraine. There will also be 148 million euros (2024) and 252 million euros (2025) from the general resources for the BHOS budget for non-military support to Ukraine. In addition, an additional 3.2 billion euros must go to NATO (an additional 100 billion euros is being requested from the 32 member states), tens of billions more to defense and Ukraine. In addition to the 2 billion euros announced for military support for 2024, the cabinet has decided to make an additional 4 billion euros available for the period 2024-2026, including contributions for recovery. Within the Ministry of Defense, voices are being raised to structurally double the defense budget from 21 to 40 billion euros. The Ministry of Defense had to acknowledge that the Dutch fleet is suffering from “material problems”. The four air defense and command frigates of the Dutch fleet cannot be deployed properly due to technical problems and a shortage of parts. The Netherlands, with a share of 1.35 percent, is below the NATO average of 1.47 percent. The United States is demanding a considerably higher contribution of up to 4 percent at the NATO summit in Brussels and wants outstanding payments to be settled. In the meantime, the Netherlands also wants to have four submarines built for the Royal Navy for 4 to 6 billion euros, 6 amphibious transport ships for 1 to 2.5 billion euros and also 4 frigates that will cost 5 billion when armed. 94.5 million euros for aid to the energy sector in Ukraine this coming winter. Of the support, 29.5 million is intended for the purchase of gas turbines. 20 million is available for supplies that are sent directly for repairs to the energy infrastructure in Ukraine and 45 million euros is being made available for the coordinated international delivery of, among other things, parts for repairs, gas turbines and fuel. According to the minister, the Netherlands has made approximately 220 million euros available for the recovery of the Ukrainian energy sector since the war started more than two years ago. The €94.5 million donated at the beginning of September comes from the€400 million already allocated funding for Ukraine, in the Spring Memorandum 2024. With previous support packages, the Netherlands has already provided approximately €220 million in support for the restoration of the energy infrastructure since 2022. The Netherlands provided a guarantee for the €50 billion donated to Ukraine (NextGenerationEU (NGEU)). During the autumn, another €20 million in incidental support was granted for energy supplies in 2024. In November 2024, Ukraine received new air defence systems from the Netherlands. The delivery has a value of €88 million. In the meantime, Ukraine is sending food and aid to Syria, which shows that the country does not actually need any further Dutch aid. The Netherlands donated more than a hundred patrol boats and other vessels and more than fifty sea drones and other supplies to Ukraine to defend the Black Sea and major rivers. The new package is worth €400 million.
The Netherlands also donated:
- 272 million for new artillery shells
- €58 million through the World Bank’s Ukraine Relief, Recovery, Reconstruction and Reform Trust Fund for the rehabilitation of the power grid, roads, bridges, shelter, schools and hospitals;
- EUR 20 million through the European Bank for Reconstruction and Development (EBRD) for financial support to the Ukrainian grid operator Ukrenergo;
- 15 million euros through the International Committee of the Red Cross (ICRC);
- 10 million euros through the Dutch Development Finance Company (FMO) for the Ukrainian private sector;
- 32.5 million euros through a second round of the RVO Ukraine Partnership Facility (UPF) for cooperation with Dutch businesses for the purpose of reconstruction and sustainable recovery;
- 2.5 million euros to support civil society organisations active in the field of aid in Ukraine
- 20 million euros for strengthening the Ukrainian energy network
- 175 million euros for drone detection radars, ambulances and drones
- 500 million euros in contracts for drone production
- the Dutch minehunter Zr.Ms. Vlaardingen
Ukraine also received an air defense system for intercepting drones and cruise missiles in April 2025. The I-Hawk, worth 150 million euros, can complement the more modern Patriot systems. Ukraine is in urgent need of surface-to-air missiles and had requested the I-Hawk, says Defense Minister Ruben Brekelmans. “What Ukraine needs is air defense with different layers,” Brekelmans explained upon arrival for new consultations on collecting military aid for the country. Russia is still bombarding Ukraine with a large number of different projectiles. The Patriots that the Netherlands donated earlier, among others, can be better deployed for defense against ballistic missiles, for example. The I-Hawk could repel other attacks. The Netherlands used the I-Hawk, made in the United States, until about twenty years ago.
Ukraine will receive 100 drone detection radars. These systems are capable of detecting drones and then passing this information on to air defense systems that can neutralize the drones. Delivery of the detection radars should be completed by the end of the year.
Also, 20 Ermine casevac (partly) unmanned vehicles will go to Ukraine. The country can use these modular systems to evacuate wounded people. Finally, the Netherlands is making an additional €80 million available for drones. This support is provided via the international drone coalition. The Netherlands previously announced that it would invest €20 million in this. The new support package is in addition to the €400 million package for maritime safety that was recently announced .
In addition, the Netherlands has signed contracts with Ukrainian industry these days for the production of 600,000 drones. This concerns a package of €500 million for drones that Ukraine urgently needs on the front line. This so-called Drone Line Initiative contributes to Russia not being able to break through.
The Netherlands has now acquired more than 1 billion euros worth of 155mm artillery ammunition for Ukraine, as well as F-16s and contracts and financing for drones. This brings the total military support for Ukraine to almost €6 billion in the form of goods and (co)financing. This was reported by Minister Ruben Brekelmans today during the 25th edition of the Ukraine Defense Contact Group . This is a meeting of more than 50 countries.
Government revenues and cutbacks
The 2025 budget assumes a deficit of 18.5 billion euros for the whole of 2024, or 1.6 percent of GDP. In order to achieve a deficit of 18.5 billion euros for the whole of 2024, the government will have to spend more than 26 billion euros more in the second half of this year than it receives in income. The consequences of the Supreme Court’s rulings on box 3 and on a German real estate fund, among other things, could have a major effect on the balance for the second half of 2024. These recovery payments have been allocated to 2024 in the budget.
From 2026, domestic and foreign trucks will have to pay a truck charge for using Dutch roads. This charge will apply to trucks weighing 3,500 kg or more. Trucks will pay an average of €0.167 cents per kilometer driven (price level 2023).
In 2024, 425.1 billion euros are expected to be collected. Wage and income tax 97.3 billion, sales tax 82.2 billion, health insurance premiums 60 billion, corporate tax 46.6 billion, national insurance premiums 46.8 billion, employee insurance 40.9 billion, excise duties 12.3 billion, environmental taxes 8.2 billion, transfer and insurance tax 8 billion, dividend tax 6.6 billion, environmental tax 6.4 billion, import duties 4.1 billion, motor vehicle tax 5 billion, gift and inheritance tax 3.6 billion, bpm 2 billion, gambling tax 1.3, consumption tax 0.7 billion, bank tax 0.6 billion and other 0.6 billion). Over the years, income will structurally decrease by approximately 5 billion euros. This is mainly the result of lower expected wage growth after 2024 with associated lower income for wage and income tax. The government wants to absorb a number of financial setbacks by gradually increasing the gambling tax, the previously announced reduction of the box 3 rate will not go ahead, the netting arrangement will be abolished as of 2027 and employers will pay a higher aWf premium and Aof premium for their employees. The VAT on hoptel visits will increase from 9 to 21%. The health insurance premium will increase by an average of more than 6 euros. The general tax credit will decrease by 335 euros. 100 million euros will be cut from public broadcasting and 10 percent will be cut from embassies and consulates.
The government is raising more and more money from the sale of CO2 emission rights . In 2022, for the first time, more than 1 billion euros was raised from the sale of CO2 rights. The Netherlands auctioned just over fourteen million so-called emission rights for more than 1.13 billion euros. In 2024, more than 1.5 billion euros will be collected in CO2 levies (more than 74 euros per tonne). Jetten of D66 wants to increase the levy for companies that emit more than 50 kilotonnes of CO2 per year from 145 euros per kilotonne to 185 euros.
The sale of the former SNS real estate branch Propertize yielded the State over 3 billion euros. 317 million euros came from the sale of related real estate . Almost 1 billion of that must go to affected investors of SNS REAAL.
The sale of ABN AMRO shares recently earned the state 1.17 billion euros. The government thereby reduced its stake to 40.5 percent. The state can raise another 7 billion euros with the remaining shares and wants to sell them as soon as possible to plug the holes in the budget .
The sale of real estate yielded tens of millions. In addition to more than fifty buildings, the state also sold Soestdijk Palace (1.7 million euros), four prisons, ten offices and four courts. For renting out buildings and land, 138 million euros were received, including 125 places for windmills. Some 2,400 people have been sentenced to prison terms, but are not in a cell.
The auction of lease rights of petrol stations along motorways yielded 27 million euros and the sale of sand, gravel and shells was good for 19 million euros. The mega settlement of ING because of anti-money laundering policy yielded almost 800 million euros.
The increase in the AOW age structurally yields around 2 billion per year. In 2011, it was legally determined that the AOW age would increase to 67 years in 2025 and in 2013 and 2015 the increase was brought forward further. By increasing the AOW age from 65 years to 65 and 9 months, the government earned 1.7 billion in 2017. The AOW age will be 66 years and 10 months in 2024. In 2011, it was legally determined that the AOW age would increase to 67 years in 2025 and in 2013 and 2015 the increase was brought forward further. The AOW age will be 66 years and 10 months in 2024. The childcare allowance was also reduced and excise duties increased. The childcare allowance scheme may come to an end. Parents will no longer receive an advance payment, but this will be paid directly to childcare organisations. Parents will then only pay a personal contribution. Next year, families with an income between approximately €29,400 and €159,200 will be reimbursed for a larger portion of their childcare costs. For example: a family with one child in childcare and a joint income of €45,000 will now receive 87.3% of the costs up to the maximum hourly rate. In 2025, they will receive 96.0% of the costs up to the maximum hourly rate.
The Dutch tax authorities are losing out on around a billion euros in tax revenue, following a ruling by the Supreme Court earlier this year. The court ruled at the end of March that Aegon was indeed allowed to offset the loss on the liquidation of subsidiaries against the taxable profit in the Netherlands. Aegon alone had to pay 50 million euros less in profit tax as a result, but in total the ruling will cost the state treasury a one-off 840 million euros. In addition, the Tax Authorities are losing out on 65 million euros annually. C overage for this debacle must come from the so-called liquidation loss scheme, or the scheme on which the Supreme Court ruled.
The average premium percentage for the WGA 2025 will increase from 0.77% to 0.83%. The average premium percentage for the Sickness Benefits Act will increase from 0.45% to 0.50% in 2025. The gambling tax will be increased by 1%. The rate in the gambling tax will be increased from 29.5% to 30.5%. The government is also considering the introduction of an additional bracket in the income tax.
From 2027, small businesses and households will have to pay for emission rights because of CO2 emissions, just as large companies already do. This will yield the government between one billion and one and a half billion euros extra.
In 2023, 3,000 patients died from Covid . A total of 169,000 people died, which is 12,700 more than average. This leaves the State, health insurers and pension funds with a lot of extra money. That (premium) money (around 200 million euros) should actually be spent from the elderly who survived, for example by lowering the AOW age and pension premiums, but in practice the money goes to other purposes. The average life expectancy has also fallen by around 6 months.
In total, 406,000 people receive social assistance. Married/cohabiting couples receive 1,869.21 euros and singles: 1,308.45 euros
More than 200 municipalities (80%) would face even greater financial deficits from 2026 because 2.5 billion euros less would go from the central government to the municipalities, but this was partly corrected with the spring memorandum. Three quarters of them are already unable to balance their budget. The municipality of Arnhem already indicated in the spring memorandum that it wants to provide less individual guidance in youth care and more group sessions. Less money will also be available for the maintenance of roads and greenery. The municipality of Zaanstad expects an average deficit of 17.5 million euros per year from 2026 and can no longer make new investments in, for example, making school buildings more sustainable and expects that the number of community centres will have to decrease and that waiting lists for, for example, school swimming will become longer. The municipality of Schiedam has presented a summer memorandum full of red figures. The provisional deficit for 2025 is 14.4 million euros. In the three years thereafter, this will increase to more than 26 million euros. Municipalities have to do more and more with fewer resources. Utrecht is mainly looking at the costs of its own civil servants and increasing parking fees and tourist tax. In Enschede, cuts will probably be made in poverty reduction , housing construction and facilities such as a swimming pool. They are counting on a structural deficit of 30 million euros per year from 2026. The existing deficits in youth care also play a role in this. In the municipality of Leidschendam-Voorburg, they expect deficits in the approach to language deficiencies in young children.Municipalities have increased local taxes faster than inflation in recent years. Parking will cost motorists 1.2 billion euros in 2023. Almost a third of this was due to the municipality of Amsterdam. Municipal taxes were already increased everywhere in 2022. In total, this amounted to 11.5 billion euros, 180 million euros more than in 2021. And no less than 12.2 billion euros was budgeted for 2023. There are also higher revenues from the tourist tax, around 377 million euros, from which the municipality of Amsterdam in particular earns the most. (135 million euros). On average, Dutch households have to pay around 900 euros annually in waste disposal tax, sewage treatment tax and real estate tax (OZB). In total, the municipalities expect to receive 14 billion euros this year from the OZB levies yet to be imposed. Life in the Netherlands has become no less than 32 percent more expensive in the past twenty years. The OZB, sewerage tax, waste disposal tax and parking fees accounted for 86% of the total levies in 2023. For 2023, 5.1 billion euros are even budgeted, which is an increase of 7.4% compared to 2022. Waste disposal taxes will also increase by around 5.3% in 2023 and sewerage taxes by 4.5%. In addition to the central government contribution, an average and structural increase of more than 1 billion euros is expected for each municipality. Municipalities expect to collect 13.3 billion euros from levies in 2024. That is 8.5 percent more than was budgeted for 2023 and the largest increase since 2007. For the years 2025 to 2030, the municipalities need 5.9 billion euros, which is 45 percent more than was stated in a previous recommendation. The municipality of Alphen aan den Rijn has the largest budget deficit in the entire province of South Holland, at 19.2 million euros for 2026. Many Dutch municipalities will not be able to get their budgets in order in the coming years. The Dutch inflation figure for August 2024 already gave a bleak picture of the state of the economy. With an average price increase of consumer goods of 3.6 percent, the Netherlands is well above the European average and far above the target of the European Central Bank. The municipality of Rotterdam will even have a deficit of 18 million euros in 2025, despite, among other things, tens of millions extra from the central government via the municipal fund and higher income from real estate taxes. The city will supplement the deficit from the municipal reserve fund. The city is also already setting aside 20 million euros to absorb future setbacks.