Jetten cabinet softens 2027 plans to win opposition support

THE HAGUE — Prime Minister Rob Jetten’s minority government is softening or postponing several controversial measures in its 2027 budget in an effort to secure support from opposition parties.

According to Prinsjesdag documents obtained by NRC, planned defence investments of €19.3 billion over the coming years remain intact. However, several measures intended to help pay for them have been postponed or adjusted.

The accelerated increase in the state pension age will not go ahead, while several cuts to social benefits have been delayed by a year. The impact of the so-called “freedom contribution”, an income-tax increase to finance defence, will also be partly softened through a higher tax credit for workers.

Household purchasing power is still expected to decline slightly in 2027, by around 0.1 percent on average, compared with an earlier estimate of 0.3 percent.

The budget deficit is projected at 2.9 percent of GDP, just below the European Union’s 3-percent ceiling. To stay within that limit, the government still plans other spending cuts and tax increases.

The changes are largely political. As a minority government, Jetten’s coalition needs opposition votes to pass its budget. Previous attempts to negotiate support failed amid internal coalition disagreements.

Finance Minister Eelco Heinen is presenting the budget as a first step towards broader agreements with opposition parties, trade unions and employers.

Some opposition demands have already been included in the plans, but opposition parties remain critical and see the budget mainly as the starting point for further negotiations.

The coming months will show whether postponing cuts, softening tax measures and making concessions will be enough to keep Jetten’s minority government politically afloat in 2027.