The Dutch right-wing coalition government has unveiled controversial funding plans for its newly agreed spring financial statement, drawing widespread criticism after it emerged that €600 million will be slashed from the national healthcare budget and unemployment benefits will be reduced from two years to 18 months.
The four ruling parties reached consensus on the spring budget proposal early Wednesday after marathon talks lasting 25 hours. However, key details on how the measures would be financed remained tightly guarded until leaks to national daily AD revealed the cost-saving mechanisms.
According to the report, in addition to cuts to social security and healthcare, employers are also expected to bear higher social security premiums for their staff—though specifics of this adjustment remain under wraps.
Finance Minister Eelco Heinen acknowledged the pain behind the negotiations, noting, “There is pain for all four parties,” without disclosing specifics.
Despite its pledge to implement “the toughest asylum policy ever,” the government will spend an additional €900 million on asylum services. The shortage of adequate accommodation has forced the state to resort to costly temporary measures such as hotels and ships, sometimes tripling the cost of standard housing.
Other key fiscal decisions revealed in the agreement include:
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Energy Tax Relief: A €200 million reduction in energy tax, expected to save the average household around €20 annually.
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Housing: Social housing rents will be frozen for two years, scrapping a planned 5% increase. Additionally, €1.1 billion will be injected into housing benefits.
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Childcare: A proposed €250 million cut to childcare spending has been dropped.
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Defence: An additional €1.1 billion for defence, though this falls short of NATO’s 3% GDP target.
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Infrastructure: €1.9 billion will be diverted to construct the Nedersaksen railway line between Enschede and Groningen, redirected from funds originally allocated to the Lely Line project.
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Farm Support: €600 million in new subsidies will be allocated to farmers in 2025 and 2026.
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Alcohol Tax: Plans to raise alcohol taxes have been scrapped.
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Legal Aid and Local Governments: Legal aid lawyers and local authorities will receive increased funding despite looming fiscal pressures.
However, pressing decisions on climate and nitrogen pollution have been deferred until August during the full annual budget negotiations. No additional funding has yet been set aside to address the prison capacity crisis.
A spokesman for the finance ministry stressed that under current cabinet policy, all unexpected windfalls must go toward reducing national debt—a stance firmly backed by the right-wing VVD party.
The full budget proposal is now expected to undergo scrutiny by the Council of State and the CPB macro-economic planning bureau before submission to Brussels as part of the European Union’s fiscal review framework.
The revelations have prompted sharp reactions from public health advocates and labor unions, who warn the cuts risk eroding critical support systems at a time of growing public service demand. More protests and debates are expected in the coming days as the government prepares to defend its fiscal direction.
