New Dutch government will prioritise higher spending

Significance

His new government, which took a record 271 days to form, is a reiteration of the previous four-party coalition involving Rutte's centre-right People's Party for Freedom and Democracy (VVD), the centrist liberals of Democrats 66 (D66) and two Christian democratic parties, the Christian Democratic Appeal (CDA) and the more conservative Christian Union (CU). The coalition deal promises a significant shift away from the austerity policies of previous governments.

Impacts

• The collective rise of the far-right vote means the far right will continue to worry centrist parties and thus influence government policy.
• Higher structural spending in education should improve medium-to-long-term productivity development and output.
• The government promises to strengthen cyber capabilities in order to crack down on intellectual property theft.