Dutch Coalition Faces Crisis Talks After Wealth Tax Vote

Dutch Prime Minister Rob Jetten is meeting coalition partners on Friday to try to prevent his minority government from collapsing after a Thursday parliamentary vote on a 2027 wealth tax amendment split the three-party alliance, Reuters reported. According to The Hindu, the House of Representatives passed the 2027 Tax Plan on Thursday night by the narrowest possible majority and the government defeated a subsequent no-confidence motion, leaving Jetten's administration nine months into its four-year term facing an open rift. Reuters reported that Jetten's centrist D66 and the Christian Democrats backed a deal with left-wing opposition parties to raise wealth taxes, while the pro-business VVD voted against its own government's plan.

The Millionaires' Tax Dispute

The National reported that the disputed amendment, dubbed the "millionaires' tax," proposes taxing asset returns above 60,000 euros ($66,555) per year at 38.5 percent, while lowering the rate below that threshold to 35.5 percent from the current flat 36 percent. The legislation would also curb inheritance tax avoidance via "paper gifts," where money is legally gifted without being transferred, and shift about 1 billion euros of tax burden from income to wealth, according to The National. The bill still requires approval from the upper house before becoming law, The National noted.

VVD leader Ruben Brekelmans called the vote outcome "disillusioning," saying his party would seriously reconsider its position, Reuters reported. "I'm going to consult thoroughly with my party and my caucus first," Brekelmans told Dutch broadcaster NOS, adding he was "not going to jump to any conclusions," according to The National. Jetten, who became the youngest prime minister in Dutch history at age 38 in February, said after the vote he would seek "a new start" in Friday's talks, Reuters reported. Prime Minister Rob Jetten skipped a European Union summit to participate in a parliamentary debate following the wealth tax vote, according to European Interest.

Minority Coalition Arithmetic and Election Outlook

The Hindu reported that the coalition holds 66 seats in the 150-member lower house, comprising D66 with 26 seats, VVD with 22, and Christian Democratic Appeal (CDA) with 18. The cabinet took office in February, 117 days after an October snap election triggered when Geert Wilders withdrew support from Dick Schoof's right-wing government, The Hindu noted. ING Group chief economist Marieke Blom told The National the tax shift was "symbolic, not essential from an economic perspective," warning that stagnation or regulatory uncertainty posed a bigger risk. Ahead of the lower house vote in November 2026, parliamentary analysis noted that no agreement had emerged on the 2027 tax plan that could pass both chambers, according to Altair Media.

PRO party leader Jesse Klaver, whose left-wing opposition group helped pass the amendment, criticized the crisis during Thursday's debate while warning against measures that drive away investors, The National reported. Reuters noted that a break with the VVD could trigger the Netherlands' fourth election in five years, though parties could also attempt to form another cabinet from existing seats. However, the opposition-leading Pro party ruled out another minority government on Thursday, Reuters reported.