Dutch coalition faces collapse after tax dispute over wealth levy

In brief

• The Dutch minority government led by Rob Jetten faces possible collapse after a dispute over a tax reform.
• D66 and CDA backed a levy on high earners agreed with the left-wing opposition, while the VVD rejected it.
• Parliament passed the package by a narrow majority, and Jetten has called crisis talks to save the coalition.

Coalition partners split over wealth tax

The governing coalition of Prime Minister Rob Jetten's centrist D66, the Christian Democratic CDA and the liberal VVD is in its most serious crisis since taking office nearly nine months ago (Regierung in der Krise: Niederlande: Regierungskrise eskaliert – ZEIT ONLINE) (Niederlande - Ministerpräsident Jetten will Zerfall seiner Regierung abwenden – Deutschlandfunk). The dispute centres on a tax reform that D66 and CDA agreed with the left-wing opposition, which introduces an extra levy on people with high wealth or income (У Нідерландах назріває урядова криза через питання податків – Європейська правда).

Vote passed narrowly despite VVD opposition

The VVD, whose parliamentary leader Ruben Brekelmans accused his partners of breaking the coalition agreement, said his party would not back the package. Parliament nonetheless approved the measures on Thursday by a narrow majority, with the VVD voting against its own government's proposal (Holandskej vláde hrozí rozpad po deviatich mesiacoch, spor vyvolali daňové opatrenia s podporou opozície – HNonline.sk). VVD leader Dilan Yeşilgöz, who is also defence minister, said the coalition needs a fundamental change.

Fragile minority position

The government holds only 66 of the 150 seats in the lower house, so it depends on smaller parties or the opposition to pass laws. Parliament is fragmented, with 17 factions according to one count, and most parties reject early elections, fearing another period of gridlock. If the coalition collapses, forming a new majority government would be difficult, and the Netherlands could face a third election in three years.

Jetten seeks a fresh start

Jetten cancelled his trip to the European Political Community summit in Dublin to deal with the crisis (Прем'єр Нідерландів обіцяє "новий початок" на тлі кризи в коаліції – Європейська правда). He told parliament he wanted a serious new start and acknowledged that relations between the three parties were strained. He called crisis talks with the leaders of the VVD and CDA on Friday. Recent polls reportedly put the left-wing PRO ahead if an election were held.