The Netherlands

   
 

Executive Summary

 
The two-year review period, 2022 – 2023, largely aligned with the Rutte IV cabinet’s tenure, formed after the longest post-World War II formation period (299 days). Nine months after the 17 March 2021 elections, and almost a year after Rutte III’s resignation, a “new” cabinet led by the same Prime Minister Mark Rutte, emerged with an identical political composition. The coalition agreement pledged a balanced focus on remedying past policy failures and elaborating future sustainability perspectives, emphasizing “Looking after each other, and toward the future.” On 7 July 2023, this cabinet resigned due to internal disagreements, formally on a minor issue (family reunion rules) raised by measures to limit asylum-seekers’ influx. Informally, divergent views within the conservative (VVD, CDA) and progressive (D66, CU) sides led to a “polycrisis” and stalemate. This meant that the government was unable to tackle, let alone solve, issues of climate change, energy transition, nitrogen reduction, personnel shortages and a raft of other interconnected problems not tackled.
 
Post-resignation, the cabinet assumed caretaker status, exacerbating the policy stalemate. The rest of the review period focused on preparing for the 22 November 2023 elections, and afterward on forming a new cabinet after the extreme-right PVV’s surprising win. The mood of crisis in Dutch politics enabled three new parties to enter parliament: GL/L (25 seats), NSC or “CDA 2.0” (20 seats) and BBB (7 seats). As of the close of the period, coalition negotiations were aiming for a rightist government including the PVV, VVD, BBB and NSC.
 
Dutch democracy remains robust, but concerns are mounting. The media consumption behavior of the under-30 population, which is shifting to social media for political news, raises worries. The absence of a size threshold for political parties in parliament produces a fragmented, if not outright splintered, parliament. Only a few parties achieve the minimum size of 13 seats for effective parliamentary work. Therefore, fragmentation diminishes parliamentary oversight functions, leading to lower trust in parliament. Civil society organizations, traditionally with high levels of citizen participation, face trust issues due to “étatization” and discontent about deals with the government. The government, despite a new Open Government Law, frequently impedes access to information.
 
With respect to its ability to govern with foresight, the Dutch governance system performs less well than in previous periods. Coordination within bureaucracies faces challenges, with loyalty and trust relations between political leaders and civil servants fraying. Turning to external experts (consultancies, lobbyists) has broken the monopoly previously held by senior civil servants. Concerns are rising about risk-averse but politically sensitive top-level officials, who are seen as potentially reversing the normative core of a good civil service – that is, no longer championing long-term state interests over short-term political demands. The use of scores of communication experts raises worries, as this blurs the line between government information and propaganda. Ineffective and rough multilevel coordination between national and lower governmental levels has led to harsh negotiation games, undermining equal national standards.
 
The competence levels of national civil servants are maintained by incorporating mainstream insights from the fields of public administration, policy analysis, and organizational and communications science into guidelines and sometimes law. The Ministry of Finance’s focus on accountability and financial concerns contributes to a managerial-financial approach in policymaking that too frequently lacks a “human touch.” All in all, the Netherlands performs as a reluctant governance and policy innovator, chronically delaying major decisions critical to the country’s strategic future.
 
In the area of economic sustainability policy, while the government portrays itself as acting decisively, implementation lags, especially with regard to infrastructure maintenance and the transition to a circular economy. The Netherlands’ reputation for high-quality infrastructure contrasts with declining trends reported by the Ministry of Infrastructure and Waterways. Efforts to increase labor market adaptability face political and strong private resistance. The Tax Service struggles with outdated systems, delaying necessary shifts in the focus of taxes from labor to wealth. Despite being among the EU’s “innovation leaders,” the Netherlands falls short of the Lisbon Treaty’s R&D expenditure commitment.
 
In social sustainability policy, education reform efforts are being hampered by teacher shortages. Past performance decline is evident in the country’s PISA rankings. Equal access challenges persist, including in the area of healthcare; and access to higher education remains unequal. Short-term relief measures alleviate extreme poverty, but rising food and housing prices are hurting households near the poverty line. Mistrust toward the government arises due to the complexity and bureaucratic rigidity of service provision.
 
Environmental sustainability policy has prioritized climate action and biodiversity preservation. Attempts to make political breakthroughs have failed due to resistance, especially from farmers. National environmental health protection and global environmental protection have never been made priorities. Fragmented efforts by provincial and local governments – allowed if not encouraged by national policy – hinder a comprehensive approach to environmental health protection. Dutch international environmental protection policies attempt to bring global agendas in line with domestic policy interests in water management and hydrogen technologies.
Back to Top