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Finance minister juggling demands as spring budget talks begin

April 7, 2025
Finance minister Eelco Heinen. Photo: Martijn Beekman

Finance minister Eelco Heinen says he has drawn up the outlines of his spring budget statement as negotiations begin in which all four coalition parties are expected to lobby for more spending.

Heinen said in his budget in September that he wanted to return to “financial discipline” and tight spending limits to stop the national debt and budget deficit rising.

But party leaders have been vocal in their demands for more investment in their own areas, as progress has stalled on issues such as migration, healthcare, the environment and agriculture.

The economic analysis agency CPB gave Heinen more breathing space when it announced in February that the budget deficit in 2024 was 1.8% of GDP, much lower than expected, giving Heinen an extra €8 billion of headroom.

However, some of that money will be needed to plug holes in the finances caused by parliament’s rejection of a proposed VAT raise on books, culture and sport, which would have saved €1.3 billion, as well as compensating investors for the wealth taxes that were ruled illegal by the Supreme Court last year.

Heinen’s task has also been complicated by the turmoil unleashed by US president Donald Trump’s tariff hikes on foreign imports, which have led analysts to downgrade growth forecasts and warn that a recession this year is more likely.

“Bring down costs”

PVV party leader Geert Wilders posted on social media site X, previously known as Twitter, that he wanted to see the cost of living eased for working households with lower rents, cheaper groceries and cuts to fuel bills.

“The Dutch finally want to see results, and rightly – not just for Ukraine, but for our own people!” he wrote.

Screenshot from X

Other ministers have also publicly called for more investment, including PVV health minister Fleur Agema, who said she needs an extra €250 million to prepare for a future pandemic.

Deputy justice minister Ingrid Coenradie says hundreds of millions need to be spent on fixing the problems in the prison system, which prompted her controversial decision to allow prisoners to be released two weeks early to ease overcrowding.

Agriculture minister Femke Wiersma is demanding billions in investments to help farmers reduce nitrogen compound emissions, including a compensation scheme if they decide to give up.

Heinen’s own VVD party has also called for an extra €1 billion to be spent on supporting working families, including €250 million for childcare.

Defence spending

Defence spending will almost certainly have to increase as Nato countries come under pressure to raise the current threshold of 2% of GDP. Again, the VVD is leading the charge, with party leader Dilan Yesilgöz calling for a 3.5% limit, which would cost an extra €15 billion a year.

The fourth coalition party, NSC, says more money should be spent on providing financial security for people at the bottom of the economic scale and compensating victims of the childcare benefits scandal.

Heinen needs to have the spring budget statement finalised by April 17, so that MPs can debate and vote on the measures ahead of a May 1 deadline for submitting the plans to the EU.

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