The Dutch minority government of D66, the VVD and the Christian Democrats (CDA) is in deep crisis over a tax deal its two other parties struck without it. D66 and the CDA agreed with the opposition PRO and Volt parties to shift about 1 billion euros of tax burden from labour to wealth, scaled back from the 1.5 billion euros PRO and Volt first sought, including a new 38.5 percent top rate in the box 3 wealth tax on investment returns above 60,000 euros a year. About 900 million euros of the proceeds would cut the lowest income tax rate for workers.
VVD leader Dilan Yesilgöz, whose party was told of the final deal only 15 minutes before PRO leader Jesse Klaver’s press conference, called the move unprecedented and contrary to the coalition agreement’s promise of a stable tax climate, demanded her partners withdraw it, and said the party would seek a fundamental reset of the partnership if they hold to the deal in Thursday’s votes. D66 and the CDA refuse to renegotiate, saying the three parties had agreed they could talk to the opposition separately and that the deal is the only route to a majority in both chambers for a coalition holding 66 of 150 lower house seats.
Prime Minister Rob Jetten cancelled a planned trip to a European summit in Dublin for an emergency lower house debate that began at 10:15 on Thursday, with votes on the 2027 tax plan later in the day. If the VVD walks out after the votes, the cabinet falls less than nine months after taking office; new elections would not follow automatically, after a recent motion called for a repair attempt or a new formation round first.