Coalition agreement 2026 in a nutshell

The title of the coalition agreement between D66, VVD and CDA — "Getting started — Building a better Netherlands" — sounds ambitious. The new cabinets plan for (“a better Netherlands”) is certainly ambitious, and the ways in which the agreement seeks to realize these plans is indeed interesting. To give you an impression of the course that the coalition intends to take, and what you can expect from it, we have listed the main points of the coalition agreement for you.

From coalition agreement to policy in practice

Before we go into the content of the political intentions in the agreement, we must point out - by way of a disclaimer - that the proposals in the document are mainly that: intentions. The agreement will determine the policy direction of the cabinet and has no legal effect. This does not mean however that the agreement has no weight behind it. It serves as the basis for legislation, budgets and measures. The intentions are the foundation on which the cabinet will build policy, and that does not happen overnight. The consequences will only be felt concretely by us citizens after they have been implemented by government agencies via the route of legislative proposal and parliamentary decision-making.

1.      Priorities

A number of spearheads are central to the coalition agreement. These are the well-known hot topics that we also saw frequently during and before the election period: Housing, nitrogen/climate, defense and asylum are high on the agenda:

a.       Housing

It will not surprise you that housing and infrastructure are a priority. The word 'accelerate' is central: the coalition wants to shorten procedures and remove bottlenecks that slow down the growth of the housing supply. The coalition parties are in agreement that construction of new housing must proceed at a more rapid pace.

b.      Climate

And that brings us to a second focal point: nitrogen and climate. On the one hand, nitrogen legislation puts a brake on housing construction and may need to be revised, and on the other hand the agreement points to the importance of nature restoration. The 'innovative climate policy' that is being pursued aims to stimulate an increase in renewable energy sources and technologies.

c.       Defence

Also no surprise is the intention of the governing parties to substantially increase the defence  budget. 19 billion euros will be allocated for this. Part of this amount and a range of investments in security must come from a so-called 'freedom contribution'. The coalition has introduced a new concept in which it is proposed that companies and citizens will make a financial contribution to pay for (among other things) safety. Exactly how this will take shape has yet to be worked out.

d.      Asylum

With regard to asylum, the coalition agreement describes focusing on stricter rules, faster procedures and better management of the influx, in close cooperation with European partners. At the same time, extra efforts are being made on repatriation and implementation of measures. Although migration is less central than in the previous government, the development of concrete, mitigation measures remains a clear priority for the new government.

2.      Positions with impact

In addition to the four major themes outlined above, we see a number of striking statements in the coalition agreement that were not among the major election themes, but from which we can expect a significant impact.

a.       Cuts in health care and social security

It is logical that changing legislation on (asylum and climate), removing bottlenecks slowing down the (housing market) and increasing defence spending comes with a price tag. An important part of the budget must be freed up - to the frustration of, for example, opposition and trade unions - through cuts in health care and social security. For example, as far as the new government parties are concerned, the deductible (own risk) will be increased (from 385 to 460 euros), the tax deduction of healthcare costs will be scrapped, the state pension age will be raised (more quickly) and unemployment benefits will be shortened (from 2 to 1 year). These measures still need to be worked out through legislation.

b.      Making complicated rules simpler

Entrepreneurs in particular have a reason to be optimistic, as the government aims to reduce  the regulatory burden placed upon them. Procedures must be shorter, rules simpler and permits issued faster, according to the coalition agreement. As the agreement itself states:

“… We have all laws and regulations screened and will scrap rules that entail high costs and/or do not work properly. Together with municipalities, we are working out standards for a lower regulatory burden and unambiguous rules, so that local rules are not unnecessarily burdensome for entrepreneurs. The government is going to simplify complicated rules for citizens and businesses. To this end, the government will send an annual Simplification Act to the House of Representatives with concrete proposals from ministries, regulators and implementing agencies."

Analysis: Not deeds but words?

In the run-up to the cabinet formation, the coalition parties promised a breath of fresh air, decisiveness and a break with previous policy. But - so the criticism goes - the final coalition agreement turns out to be a lot less innovative than expected. For example, economists argue that a promised fundamental reform of the tax system is not forthcoming in the agreement. Or more generally: many plans would mainly build on existing policies. Instead of radical a change of course, the agreement mainly contains adjustments and shifts within existing frameworks. In various (Dutch) opinion articles, it is noted that the agreement looks more pragmatic than visionary, offering nothing in the way of a truly innovative course.

Want to know more?

Although the above gives a picture of the most important policies to be expected in the coming years, there are many other proposed policy changes - such as the sugar tax, continuation of mortgage interest deduction, activity Lelystad Airport, investing in AI, helmet requirement for fat bikes - in the coalition agreement. A nice, more extensive summary is provided by the NOS (in Dutch) on this page. If you really want to go into depth, we recommend that you read the coalition agreement yourself. You can find it in Dutch here. You can download the budgetary appendix to the agreement here . Would you like to know how the new measures could effect your specific financial situation? Feel free to contact us.