EU’s 800 Billion Defense Plan Faces Opposition in Dutch Parliament

The Dutch Parliament recently passed a motion opposing the EU’s up to 800 billion euro defense plan. Prior to this, EU leaders, including the Dutch Prime Minister, unanimously agreed to support the plan proposed by Ursula Von Der Leyen, President of the European Commission.

Von Der Leyen unveiled the “ReArm Europe” plan in March, aiming to raise a defense budget of 800 billion euros within EU member states. She called for member countries to increase defense spending to 1.5% of their GDP. This would raise around 650 billion euros for the EU over the next four years, with the remaining 150 billion euros to be raised through European bonds. All member countries are expected to shoulder the debt as a means to pool resources and meet the demand for improved missiles, drones, air defense systems, anti-drone systems, and investments in cybersecurity equipments.

In a vote on March 11th, the Dutch Parliament passed a motion with 73 votes in favor and 71 against Dutch participation in “ReArm Europe.” Despite the support from Prime Minister Dick Schoof and the People’s Party for Freedom and Democracy, the other three parties in the Cabinet – the Liberal Party, the Farmers’ Party, and the New Social Contract Party – voted against. The opposition was not only from the four parties in the Cabinet but was also strongly echoed by several other political parties.

Leader of the JA21 Party, Joost Eerdmans, stated, “The Netherlands fundamentally opposes European joint loans, and defense spending must be one of our own national resources, to be decided by the Cabinet.” According to the text he submitted, the majority of parliament members voted to urge the Cabinet to “not participate in the ReArm Europe plan, negotiate when necessary, and choose to withdraw.”

Leader of the New Social Contract Party, Pieter Omtzigt, expressed that his party stands with Ukraine and supports their need to defend themselves and their sovereignty against Russian aggression. While his party does not oppose ReArm Europe, they fundamentally reject European bonds and the relaxation of budget rules.

However, the Labor Party Green Party Alliance stated, “It is unacceptable for the Netherlands to isolate itself through Parliament. And three out of the four coalition parties put the Prime Minister in a difficult position.” Memeber Jesse Klaver also expressed similar concerns, expressing worries about the threats to European security posed by current geopolitical changes. He pointed out, “Some parties in the Parliament still oppose unlimited military investments.” Other parties opposed the issuance of Eurobonds by the EU. But “now is a special time”, and we should set aside “partisan political positions” to consider whether to join the plan from a holistic perspective.

Leader of the People’s Party for Freedom and Democracy, Geert Wilders, said if Parliament votes to support Eerdmans’ proposal, the Prime Minister will have to go back to Brussels to inform the European Commission that the Dutch people oppose the plan. He stressed that in a democratic country it should be so, the Prime Minister should seek Parliament’s approval before participating in such a plan.

Leader of the D66 Party, Rob Jetten, stated during the debate in Parliament on the motion that Europe cannot rely solely on the support of the United States. “We are responsible for our security,” he noted, pointing out that currently all member countries are in favor of ReArm Europe. If Parliament opposes this plan, it will not only “isolate” the Netherlands, but also affect Schoof’s influence within the EU and the European Commission.

Schoof expressed concern about the current situation, stating in a regular weekly press conference that discussions on European defense and rearmament plans will continue. The Cabinet overall supports the European Commission’s plan to strengthen European defense but holds a critical stance on financial risks and potential threats to economic stability. He stated, “We are still in discussions with Parliament, and various elements of the plan need further discussion and clarification.”

After the motion passed in Parliament, intense negotiations took place within the Cabinet. Schoof met with leaders of the coalition parties to delve into the drawbacks of Dutch participation in the EU plan. While the negotiations were challenging, the coalition parties, including the Liberal Party, Farmers’ Party, and New Social Contract Party, agreed that the Netherlands could conditionally partake in the plan, underlining financial prudence as a primary requirement. Their main concern was that the financing mechanism of the plan might have adverse effects on the economy.

The European Commission proposed borrowing 150 billion euros to increase defense spending in each member country. Additionally, the EU plans to temporarily relax budget deficit rules, allocating 650 billion euros for defense investments.

Schoof noted, “The Netherlands is part of the EU. We cannot simply withdraw from European defense discussions. I fully agree that caution should be exercised in financial expenditures.” Meanwhile, the Dutch government opposes raising funds through any form of long-term joint debt issuance, emphasizing, “We do not support the use of Eurobonds or similar shared debt instruments to fund defense.” The proposed loans will be shouldered by individual countries, with each responsible for repayment. Other countries can act as guarantors, “but this does not constitute Eurobonds.”

He believes the Dutch finances will not be directly impacted, stating, “No Finance Minister will classify these loans as Eurobonds.” The Cabinet advocates for strict limitations on the relaxed budget rules, maintaining that these rules only apply to defense spending and will be implemented for a maximum of four years. Schoof concluded, “We must ensure that the term ‘defense’ is not broadened to encompass unrelated expenditures.”

In addition to financial support for defense, the Netherlands will also support other plans aimed at enhancing European defense capabilities, such as investing in the European defense industry, reducing reliance on the United States, and streamlining joint procurement of military equipment. Schoof also emphasized, “We must not forget the reasons for doing so. We face long-term security threats, especially Russian aggression, so strengthening our collective defense is crucial.”

It is reported that Parliament will revisit the agenda of the European Council meeting, focusing on the progress of Ukraine and the European ReArm Europe plan. At the end of March, the Dutch government will attend the European Council summit held in Brussels, with key topics including rearmament, Ukraine, the Middle East, economic competitiveness, energy, and immigration issues.