Speaking in the context of a new government preparing to be formed, parties in the Dutch ruling coalition said that the country will impose a surcharge on income tax and corporate income tax, in order to create stable resources for increased defense spending. This surcharge is called "free tax", with the goal of bringing in about 5 billion euros per year for the defense budget.
According to the alliance agreement, the Netherlands aims to increase defense spending to 2.8% of gross domestic product by 2030 and 3.5% by 2035, compared to about 2% currently. These targets are in line with NATO's general orientation agreed upon by member countries earlier. When the roadmap is completed, the total increase in defense spending is expected to reach about 19 billion euros per year.
The funding for this increase comes not only from "free tax" but also from widespread budget tightening measures. Fields such as health and social welfare are mentioned in the spending cut plan, aiming to create financial room for defense. In parallel, the new government affirms that it will maintain investment in housing and control the budget deficit around 2% of GDP.
In a statement on the direction of administration, Mr. Rob Jetten, leader of the D66 party, emphasized that the coalition is opening up "a new roadmap for the country", focusing on long-term investments. Mr. Rob Jetten and other political leaders reached an agreement to form a rare minority government, with the participation of D66 in a pro-European centrist direction, the conservative Christian Democratic Party and the right-wing VVD party.
This coalition only holds 66 out of 150 seats in the House of Representatives, meaning that policy proposals will need more support from the opposition. The largest left-wing opposition party said it will pursue stronger social and environmental policies during the debate in parliament.
If he becomes the head of government, Mr. Rob Jetten, 38 years old, will be the youngest prime minister in Dutch history. The remaining cabinet positions are expected to be completed in the coming weeks, before the government officially debuts.
