A “freedom tax” to fund Ukraine’s security and defense. It is one of the most discussed points of the program of the new Dutch government currently being formed, a minority coalition between the progressive, popular liberals and the right-wing liberals. The declared objective is to strengthen the country’s “strength” in a context of growing threats – from the war in Ukraine to hybrid attacks, up to the risk of sabotage and cyber offensives – and to bring military spending to the new NATO targets.
How much is the Netherlands’ “freedom tax” for Ukraine?
In the text of the agreement the measure is defined as a “contribution for freedom” paid by citizens and businesses which – when fully operational – aims to exceed 5 billion euros per year. According to reconstructions by the Dutch media and the tax press, from 2028 the burden would be quantified as 3.4 billion borne by citizens and 1.7 billion borne by companies. And it would not be a “neutral” intervention: the parties explicitly speak of a choice linked to national security.
The “freedom tax” is just one piece of a much larger package. The coalition is putting on the table up to 19 billion euros per year in increased defense spending in the coming years, also through budget cuts on other chapters. The objective is to bring military spending to 2.8 percent of GDP by 2030 and 3.5 percent by 2035, in line with the new NATO guidelines. The operational objectives: expansion of the armed forces up to 122,000 personnel, as well as investments in intelligence and cyber capabilities.
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In the security chapter, the coalition explicitly links the increase in spending to the worsening of the geopolitical context: risk of escalation with Russia, sabotage, espionage and digital attacks. And the line on Ukraine remains “multi-year” supportive.
Why the measure is controversial: criticism of the increases
Higher spending on armaments and defense will cause cuts and reforms on welfare and healthcare, as well as a tightening of some benefits. Among the measures cited by the Dutch media: increase in the healthcare deductible up to 460 euros, reduction of the maximum duration of unemployment benefit to one year, and other measures to contain social spending.
