Budget deal in sight after coalition agree to scrap welfare cuts
Coalition parties D66, CDA and VVD hope to have a deal with the opposition parties finalised by Tuesday evening after...
Dutch coalition parties D66, CDA and VVD have reportedly reached a deal with opposition parties to scrap planned welfare cuts, paving the way for a budget agreement. Pro and Volt, the left-wing parties, have secured a key demand to drop the €6bn welfare cuts, while retaining the two-year maximum term for unemployment payments and the long-term incapacity benefit WIA.
The government had previously abandoned plans to cap benefits such as sick pay and maternity pay at a lower level and increase the retirement age in line with life expectancy. The main concession to the right-wing parties is the introduction of a capital gains tax to replace "box 3" asset taxes, which the Supreme Court ruled breached European human rights laws.
However, the new system is expected to create a €10bn deficit in the short term due to the tax being applied only upon asset sales, not on annual gains. Right-wing parties JA21 and SGP remain skeptical about the deal, citing concerns over tax cuts, migration, security, abortion, and surrogate parenting. The cabinet requires 10 opposition votes in the lower house and 16 seats in the Senate to pass the budget.
Written by urgent.news from DutchNews's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
