Cabinet to ask opposition for ideas on plugging the budget hole: PM Rutte

After hours of consultations in the night from Thursday to Friday, the leaders of the coalition factions have finished talking about the Spring Memorandum - the annual update to the national budget - for the time being. At around 2:30 a.m. Prime Minister Mark Rutte said he "sees a direction," but for the time being, "will consciously stop the talks to give opposition parties a chance as well." Rutte emphasized that the coalition has not yet reached an agreement in outline.

According to the Prime Minister, the process to arrive at the Spring Memorandum is, therefore, "really different from other years." The leaders of the VVD, D66, ChristenUnie, and CDA first want to seek "broad support in parliament" before presenting the amended budget plans. Rutte indicates that he will be able to say more in the second half of May, after "all ideas have also been collected from other factions."

According to Rutte, the fact that the coalition will talk to the opposition about their ideas and wishes for the Spring Memorandum is "unique." The Prime Minister "sees where it could land" but emphasized that "many variants are conceivable" about the final shape. He refused to comment further.

The Cabinet discussed the Spring Memorandum, which will be presented to parliament at the end of May, multiple times in the past weeks. Minister Sigrid Kaag of Finance already had coffee with opposition parties looking for support. The Cabinet needs the support of at least one opposition party to have a majority in the Senate.

The Cabinet is looking for ways to fill a billion-euro hole in the budget caused by compensation for the savings tax, additional investments in Defense, and measures to protect purchasing power against inflation. Rutte said last week that higher taxes for companies and wealthier people are inevitable. The Cabinet may also scrap a tax break for expats. "I'm not going to give the impression that you can solve these massive problems in spending alone."