Dutch coalition postpones budget talks again as negotiations remain deadlocked

The Netherlands’ governing coalition postponed a key budget meeting for a second time Monday as its three parties remained divided over the 2027 spending plan, according to public broadcaster NOS.

The meeting, initially scheduled for 11 am local time (0900GMT) and later moved to 1 pm (1100GMT), was postponed again until 6 pm (1600GMT) as D66, the People’s Party for Freedom and Democracy (VVD) and the Christian Democratic Appeal (CDA) failed to reach an agreement.

The parties resumed negotiations Monday morning after talks continued until after 1 am local time (2300GMT Sunday) without producing a deal.

Time is running out for D66 leader Rob Jetten, VVD leader Dilan Yesilgoz and CDA leader Henri Bontenbal, as the budget documents must officially be submitted to the Council of State by Monday.

The minority coalition has also failed to secure agreements with opposition parties, meaning the budget is expected to be submitted to parliament without majority support.

The governing parties themselves remain divided, particularly over taxation of returns on capital, known as Box 3, and social security spending.

D66 and the CDA reportedly want to prevent the budget from shifting too far to the right in an effort to win support from Pro, the largest opposition party in both houses of parliament.

Pro is demanding that more than €6 billion ($7 billion) in planned social security cuts be withdrawn and that wealthier people pay more tax.

The VVD opposes those demands and fears concessions to the left could damage relations with right-wing parties JA21 and SGP.

While the coalition could seek their support in the lower house, the two parties would not provide enough seats for a majority in the Senate.

It remains unclear what would happen if the coalition fails to reach an agreement by the submission deadline.