The second Balkenende cabinet was the executive branch of the Government of the Netherlands from 27 May 2003 until 7 July 2006. The cabinet was formed by the Christian-democratic Christian Democratic Appeal (CDA), the conservative-liberal People's Party for Freedom and Democracy (VVD), and the social-liberal Democrats 66 (D66) after the election of 2003. The cabinet was a centre-right coalition and had a slim majority in the House of Representatives with Christian Democratic Leader Jan Peter Balkenende serving as Prime Minister. Liberal Leader Gerrit Zalm, a former Minister of Finance, served as Deputy Prime Minister and returned as Minister of Finance, while former Progressive-Liberal Leader Thom de Graaf served as Deputy Prime Minister and Minister without Portfolio for the Interior.
The cabinet served during the unstable 2000s. Domestically, immigration was a major point of attention and it had to deal with the murder of controversial filmmaker and critic Theo van Gogh, while internationally, it dealt with the war on terror and the government support for the Iraq War. The cabinet suffered several major internal and external conflicts including multiple cabinet resignations, such as that of Deputy Prime Minister De Graaf following the failed introduction of a new referendum system. The cabinet fell prematurely on 30 June 2006 after Democrats 66 supported a motion of no confidence against Immigration Minister Rita Verdonk and withdrew its support, with all Democrats 66 cabinet members resigning on 3 July 2006 and the cabinet continuing in a demissionary capacity until it was replaced by the caretaker third Balkenende cabinet on 7 July 2006.
Formation
On 24 January 2003 Queen Beatrix asked Minister of Justice Piet Hein Donner (CDA) to lead the coalition negotiations. The negotiations for the coalition were lengthy. Initially the CDA preferred to continue its Centre-right coalition with the VVD, but they did not have sufficient seats in the House of Representatives to continue in government without the support of a third party. Another coalition with Pim Fortuyn List (LPF) would be likely to be unpopular with voters after the events of the First Balkenende cabinet, and the D66 was unwilling to join such a coalition. A government supported by the Christian right-wing Reformed Political Party (SGP) and the social conservative Christian Union (CU) was opposed by the VVD.
A long negotiation between CDA and the Labour Party (PvdA) followed. The CDA and PvdA had come out of the elections as equal partners. The negotiations were troubled by the invasion of Iraq, the bad economic forecasts and personal animosity between incumbent Prime Minister and Leader of the Christian Democratic Appeal Jan Peter Balkenende and Wouter Bos the Leader of the Labour Party. After a couple of months talks were called off by Balkenende. At this point, D66 decided to join the coalition after all. The cabinet was based on a very slim majority in the House of Representatives of 78 seats out of 150. When VVD Member of the House of Representatives Geert Wilders left his party on 2 September 2004 (continuing as an independent), the narrow majority of the cabinet slimmed down even further to 77 seats in the Member of the House of Representatives.
Term Policy The cabinet program is based around the slogan: Mee doen, Meer Werk, Minder Regels (Participation, More Jobs, and Fewer Rules). The cabinet seeks to address the problems of integration of ethnic minorities (participation), the economic recession (more employment) and the lack of trust in government (Fewer Regulations).
Migration and Integration policy The most controversial issue the cabinet addressed is the perceived lack of integration of ethnic minorities, especially immigrants from Morocco and Turkey. To solve this problem this cabinet has tried to reduce the influx of migrants, and to force migrants to take an integration course. The cabinet appointed Rita Verdonk (VVD) as a Minister without Portfolio within the Ministry of Justice with the responsibilities for Integration, Immigration and Asylum Affairs.
The number of immigrants allowed into the Netherlands was reduced by enforcing the asylum-seekers law of 2000 rigidly. This law was created under the Second Kok cabinet by the then Mayor of Amsterdam, Job Cohen. Controversially, 26,000 asylum-seekers who had lived in the Netherlands for over five years but who had not been granted asylum were deported. Furthermore, partners of Dutch citizens are only allowed to immigrate into the Netherlands if the Dutch partner earns more than 120 percent of the minimum income. This income requirement has been decreased back to 100% of the minimum wage in 2010 as a result of the judgement of the EU Court in the Chakroun case.
Since 2006, family migrants from 'non-Western' countries who want to immigrate into the Netherlands must pass an integration test. It tests the applicant's knowledge of the Dutch language, political system and social conventions. The test must be taken before entering the Netherlands, in a Dutch Embassy or Consulates in the country of origin.Bonjour, 2010, Waarom het Nederlands beleids inzake inburgering in het buitenland strenger is dan het Franse;Bonjour, 2010, French and Dutch policies of civic integration abroad Once in the Netherlands, migrants were obliged to pass a second test before receiving a permanent residence permit or being allowed to naturalise. 'Oudkomers', i.e. foreigners who have lived in the Netherlands for a long time, were obliged by the Dutch government to take the exam as well.
Economic Reform The cabinet took power at a time when the Netherlands' economy was in poor shape, with increasing unemployment and slight economic contraction. To jump start economic growth, the cabinet has proposed tax cuts and reform of the system of social welfare.
The cabinet has implemented a new law for disability pensions. Most people enjoyed disability pensions under the old disability law received pensions even if they were only partially disabled and could still work. The pensions of these people have been cut, and so they are forced to return to the workforce. Furthermore, the cabinet has limited the possibility of early retirement. Without exception all Dutch employees will be forced to work until they have become 65, possibly longer.
The cabinet also has cut government spending by 5700 million euro, making a total of 11 billion euro, when combined with the cuts announced by the previous cabinet. Among other measures, free dental care, physiotherapy and anti-conception medication were cut, 12000 positions were to be eliminated in the armed forces and some of their bases closed, the link between benefit payment rates and salaries was to be broken, and the rental housing subsidy was reduced. At the same time, 4 billion euro in extra spending was made available, mainly in education and justice.
Government Reform Another controversial issue is the reform of the Dutch political system. This was proposed to overcome the 'gap between politics and citizens', which became clear in the 2002 elections, which were dominated by the populist Pim Fortuyn who was later Assassinated during the election campaign. The cabinet appointed Thom de Graaf (D66) as Deputy Prime Minister and as a Minister without Portfolio within the Ministry of the Interior and Kingdom Relations with the responsibilities for Government Reform. Thom de Graaf (D66). De Graaf, who proposed an ambitious reform proposal, was met with much resistance. Two of the most important proposals were the directly elected mayor and the election system.
The Netherlands is one of the last countries in Europe not to have an elected mayor, instead he is appointed by the Crown. To change this the constitution has to be amended. A proposal to do this by former Minister of the Interior and Kingdom Relations Klaas de Vries (PvdA) in 2001, under the second Kok cabinet, was rejected in second reading by the Senate. This was because it would allow the controversial plans of De Graaf to be implemented. This would involve a mayor, directly elected by the city's population, who would have considerable power to take care of security and public order. The proposed election system would have preserved proportional representation but have done so with supplemental regional candidates.
On 23 March 2005, the Senate voted against a proposal to introduce a constitutional amendment that would allow the directly elected mayor. As a result, Thom de Graaf (D66) resigned as Deputy Prime Minister and Minister for Government Reform. The coalition parties then renegotiate a new coalition agreement. In the Easter weekend reached an agreement, the so-called Easter Accord. On 31 March 2005 Alexander Pechtold (D66) the Mayor of Wageningen and Chairman of the Democrats 66 was appointed as the new Minister for Government Reform. The position of Deputy Prime Minister was taken over by Minister of Economic Affairs Laurens Jan Brinkhorst (D66).
Opposition to policy The cabinet was facing a lot of opposition, from the official opposition in the House of Representatives, from an extra-parliamentary movement, from international circles and from within. The left-wing parties in the House of Representatives where critical of the government. They perceived the policy on migration and integration as too hard and causing polarization between Dutch people and immigrants, and the economic reforms and budget cuts as untimely, because of the recession.
The extra-parliamentary movement "Keer het Tij" (Turn the Tide) has organized mass demonstrations against the government. Important partners within Keer het Tij where the three main left-wing opposition political parties the Labour Party (PvdA), Socialist Party and GreenLeft (GL), the largest trade union, the FNV, environmental organisations like Greenpeace and Milieu Defensie, and organisations of migrants. In 2004 they organized a political demonstration in the Hague. At the time the negotiations between the cabinet, the employers and the unions on early retirement had broken off, with the union leaders promising a "hot autumn".
Most international criticism comes from Belgium. Two ministers, the liberal minister of Foreign Affairs De Gucht and the Socialist vice-prime minister Van den Bossche of the purple Cabinet Verhofstadt II, have criticized the style of the Dutch cabinet, calling the prime minister Balkenende "Petty Bourgeois".De Gucht described Balkenende as een mix tussen Harry Potter en extreme stijfburgerlijkheid, een man in wie ik geen spoor van charisma kan ontdekken (different sources give slightly different versions of this quotation). Regarding Netherlands ministers he said Hebben jullie in jullie kranten soms personeelsadvertenties staan met: als je niet stijf, truttig en kleinburgerlijk bent, kom je niet in aanmerking voor een ministerspost?
Criticism also rose out of the ranks of the largest government partner, the CDA. The former Christian-Democratic Prime Minister Dries van Agt and former leader of the parliamentary party, De Vries, criticized the cabinet for its anti-social policy. Minister Pechtold has opposed cabinet policy on terrorism and drug law in the media, breaking the unity of cabinet.
Resignations In December 2003, the Minister of Foreign Affairs, Jaap de Hoop Scheffer, was appointed Secretary-General of the NATO. He was succeeded by former diplomat Ben Bot.
In June 2004 a personal conflict between State Secretary for Higher Education Nijs and Minister of Education Van der Hoeven caused the departure of Nijs. This in turn caused a reshuffle: State Secretary for Social Affairs Rutte became State Secretary for Higher Education and Henk van Hoof (a state secretary in previous cabinets) became State Secretary for Social Affairs.