Minority cabinet faces first Prinsjesdag test after chaotic budget talks reveal internal power struggles

When the Dutch royal coach rolls through The Hague on Budget Day, tradition dictates a carefully choreographed scene of unity. This year, that image of stability is at odds with the reality inside Prime Minister Rob Jetten's cabinet, which only struck a deal on the 2027 budget after days of negotiations so fraught that parliamentary reporters described them as "crisis-like."

The minority coalition of D66, VVD and CDA is entering its first Prinsjesdag on September 15 without a majority in either the Tweede Kamer or the Eerste Kamer. The budget must still survive parliamentary scrutiny, and opposition parties have already signaled that the cabinet's 'handreikingen' — offers made to secure support — are insufficient.

What happened behind closed doors

The budget talks, which concluded on August 31 after a missed Friday deadline, exposed more than just policy disagreements. According to a reconstruction by NOS parliamentary reporter Nynke de Zoeten, the negotiations became a "stevige inhoudelijke crisis" and raised a fundamental question: who is actually in charge?

"There is a serious substantive crisis," de Zoeten told the NOS podcast De Dag, "and perhaps also a crisis about who actually holds power in the Netherlands." The confusion arose because ministers were negotiating at multiple 'tables' — with different opposition parties on different dossiers — leading to uncertainty over whether Prime Minister Jetten or Finance Minister Heinen was directing the process.

Defense Minister Dilan Yeşilgöz (VVD) described the weekend before the deal as "two days of fine-tuning," though sources close to the coalition acknowledged there were still significant differences to bridge. VVD Justice Minister David van Weel told reporters ahead of the Budget Council meeting: "No one is proud of this process," adding that he hoped relations between coalition parties had not been permanently damaged. Source

The budget's sticking points

The cabinet's internal divisions centered on wealth tax (box 3) and social security spending — two issues with direct consequences for anyone living in the Netherlands.

For international residents, the debate over box 3 is particularly relevant: it affects how savings and investments are taxed, an area that has seen years of legal uncertainty after the Supreme Court ruled the previous system violated property rights. Any changes to this regime could mean higher or more predictable tax bills for those with assets in Dutch accounts.

On social security, opposition parties — especially the left-wing Pro led by Jesse Klaver — have rejected cuts to unemployment and sick leave benefits. "Pro-leader Klaver has repeatedly said he will not agree to phasing out benefits for the unemployed and sick," NOS reported. Source

What this means for your residence permit and daily life

At first glance, a cabinet crisis might seem like something that only affects Dutch politicians. But for internationals living in the Netherlands, the outcome of these negotiations will shape what you pay in taxes, how much your rent might rise, and whether the IND — the immigration service — gets the budget it needs to process your residence permit application on time.

The 1.5 billion euros the cabinet has set aside to keep purchasing power as stable as possible will also be scrutinised. If the budget fails in parliament, or if major concessions are required, the impact could ripple through everything from healthcare premiums to the rental housing allowance that many international tenants rely on.

What happens next?

Prime Minister Jetten and his ministers will now need to navigate a parliamentary landscape where the two largest opposition parties — Pro and the PVV — have already dismissed the cabinet's overtures as insufficient. The likelihood is that more 'handreikingen' will be needed, meaning further negotiations and possible concessions that could reopen internal coalition wounds.

The budget needs approval from both chambers. Given that the coalition lacks a majority in either, securing passage will require building ad hoc alliances — a process that could test whether the cabinet's internal leadership crisis is truly resolved, or merely papered over for Prinsjesdag. Source

As NOS parliamentary reporter de Zoeten put it: "A crisis only really begins when the cabinet falls, but if they disagree so fundamentally for so long, it is at the very least crisis-like." For international residents watching from the sidelines, the coming weeks will reveal whether this minority cabinet can govern effectively — or whether the power struggle between Jetten and Heinen will dominate Dutch politics well into autumn.