The VVD’s Economic Shift: A New Agenda for the Middle Class
In the run-up too the previous elections, the rising costs of living—housing, energy, groceries, and healthcare—dominated voter concerns. The Dutch public clamored for more government support, creating a political challenge for the VVD, the party traditionally associated with optimism and neo-liberal policies. Faced with a worried electorate, the VVD shifted its focus to migration, a move that has since defined its political trajectory. However, with its recent ‘Agenda for the Working Netherlands,’ the party is pivoting back to economic themes, aiming to address the struggles of the middle class.
The timing of this shift is notable. Many view the upcoming Spring Memorandum as a potential breaking point for the fragile coalition government. The PVV, a key player in the coalition, faces internal divisions on socio-economic issues, presenting an prospect for the VVD to regain ground. “You wonder why VVD people have been on the integration fire for so long,” one observer noted. “It is like rubbing in a stain.”
Earlier this year, VVD leader Dilan Yeşilgöz signaled this new direction by targeting government bureaucracy. Drawing inspiration from argentina’s Javier Milei, known for his radical free-market policies and theatrical campaign tactics, Yeşilgöz praised Milei’s approach to slashing ministries and restructuring budgets. Her tone echoed that of former Prime Minister mark rutte, who once declared that ‘the Netherlands is suffering from administrative obesity.’ Under Rutte’s leadership, the Ministry of Housing, Spatial Planning, and the Habitat was abolished.
Yet, the VVD’s economic narrative has grown more nuanced. While the party champions ‘the major renovation of the Netherlands,’ it also acknowledges the need for a subtler approach. The ‘Agenda for the Working Netherlands’ reflects this duality. At its core is the recognition that the middle class seeks government assistance. The tone is unexpectedly compassionate, focusing on a demographic that has seen its disposable income stagnate as the 1980s. “The welfare state is no longer a negative fact,” the agenda states. “The problem is rather that it is only for the lower incomes.”
the VVD’s strategy hinges on framing its policies as a defence of the middle class.Yeşilgöz argues that middle-income earners pay the most taxes while receiving the least in return. While this is partly due to a regressive tax system, the VVD shifts the blame to benefit recipients. The party’s memorandum claims that beneficiaries have seen greater improvements than the middle class, a claim contested by the FNV, which highlighted inaccuracies in the VVD’s data.
Central to the agenda is the proposed ‘purchasing power law,’ which stipulates that ‘working people always improve more than non-working people.’ However, the law does not boost middle-class incomes; instead, it reduces benefits for non-workers. “That does not mean that people on benefits do not earn progress,” Yeşilgöz stated. “We don’t deprive this group of people.” Critics, however, argue that the policy effectively diminishes the income of beneficiaries.
The stagnation of middle-class purchasing power since the 1980s is not attributable to benefit recipients but rather to the declining labour income share. Corporate profits have reached historic highs, with companies and shareholders capturing an increasing share of prosperity. Yet, the VVD’s agenda does not address this imbalance by advocating for higher wages.
Despite its controversial approach, the VVD’s intervention offers a potential resolution to the country’s prolonged cultural struggles. By refocusing on economic issues,the party aims to carve a new path forward.
| Key Points of the VVD’s agenda |
|————————————|
| Focus: Middle-class economic struggles |
| Proposal: ‘Purchasing power law’ favoring workers over non-workers |
| Criticism: Inaccuracies in data, reduction of benefits |
| inspiration: argentina’s Javier Milei |
| Goal: Shift from cultural to economic priorities |
The VVD’s latest move underscores its attempt to redefine its political identity.Whether this strategy will resonate with voters remains to be seen, but it marks a significant departure from the party’s recent focus on migration.
The VVD’s Economic Shift: A New Agenda for the Middle Class
Table of Contents
In recent years, the rising cost of living has become a central issue for Dutch voters, pushing the VVD to pivot from its focus on migration to addressing middle-class economic struggles. With its new ‘Agenda for the Working Netherlands,’ the party aims to redefine its political identity by tackling issues like stagnant purchasing power and income inequality. In this interview, Senior Editor Anna van der Meer sits down with economist Dr. Erik de Vries to unpack the implications of the VVD’s latest policy shift.
Redefining the VVD’s political Identity
the ‘Purchasing Power Law’ and Its Implications
Inspiration from Argentina’s Javier Milei
Criticism and Challenges
Shifting from Cultural to Economic Priorities
The VVD’s latest agenda represents a significant shift in its political identity, focusing on the economic struggles of the middle class. While its ‘Purchasing Power Law’ and reduction of benefits have drawn criticism, the party’s attempt to pivot from cultural to economic priorities could reshape its appeal in a changing political landscape. whether this strategy succeeds will depend on its ability to address structural inequalities and build trust with voters.
