The Netherlands’ parliament on Tuesday narrowly voted against a multibillion-euro presented by Prime Minister Dick Schoof last week.
The motion was introduced by the right-wing populist JA21 party, also known as the Conservative Liberals.
It was supported by three of the four coalition parties. The motion passed in a 73-71 vote, with the opposition Socialists (SP) also voting in favor.
Though the motion is not legally binding, it raises uncertainty about how the government will proceed.
What is the ReArm Europe plan?
The plan, presented by Commission President Ursula von der Leyen, seeks to mobilize nearly ($872 billion) to strengthen European defense.
The funding structure includes a €150 billion loan scheme secured against unused EU budget funds, as well as relaxed fiscal rules that could unlock €650 billion in additional spending.
EU leaders met in Brussels last week to significantly increase defense investments after support for .
stressed that the plan is essential for Europe’s security, stating, “ReArm Europe could mobilize close to €800 billion for a safe and resilient Europe. We will continue working closely with our partners in NATO. This is a moment for Europe.”
However, critics in the Netherlands argue that financing the plan would increase national debt, further dividing the government on the issue.
NATO and its economic considerations
NATO Secretary General and former Dutch Prime Minister Mark Rutte has publicly backed the plan, with members of his party warning that it would be “irresponsible” for the Netherlands to withdraw support.
The vote also comes at a time when the Dutch economy is showing resilience. According to Statistics Netherlands (CBS), the country’s GDP grew by 0.4% in Q4 2024, outperforming the EU’s overall growth rate of 0.1% for the same period.
Concerns over national debt and fiscal responsibility remain central to the ongoing debate between lawmakers.
Edited by: Saim Dušan Inayatullah
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