US embassy cable - 05THEHAGUE883

UNCLAS THE HAGUE 000883 
 
SIPDIS 
 
SENSITIVE 
 
E.O. 12958: N/A 
TAGS: PREL, PGOV, PINR, NL 
SUBJECT: DUTCH CABINET SURVIVES 
 
REF: THE HAGUE 829 
 
1. (SBU) Summary:  As anticipated (reftel,) the rank and 
file of the Democrats-66 (D66) party, the junior member of 
Prime Minister Balkenende's coalition government, voted 
overwhelmingly at an April 2 extraordinary party congress to 
remain in the coalition despite the resignation of D66 
Deputy PM De Graaf.  After several hours of sometimes 
contentious debate, party members concluded that forcing 
early elections would not be in D66's long-term interest, 
and agreed that remaining in the coalition would allow D66 
to press its reform agenda from within the government until 
the next regularly scheduled elections in May 2007.  The 
senior Christian Democrats (CDA) and conservative Liberal 
Party (VVD) coalition partners were clearly relieved that a 
serious cabinet crisis had been averted.  End summary. 
 
2. (U) Following the March 23 resignation of D66 Deputy 
Prime Minister and Government Reform Minister Thom de Graaf 
over rejection of several government reform proposals, D66 
renegotiated the 2003 coalition accord on terms that would 
justify its remaining in the government by obtaining 
concessions on other party priorities.  On April 2, D66's 
rank and file was convened at an extraordinary party 
congress to give its opinion on the accord.  In the end, 
about a two-third majority at the party congress voted for 
the accord -- and thus for staying in the coalition -- 
primarily because early elections were not considered to be 
in the interest of the nation or the party.  Party members 
appeared to be convinced that early elections would more 
likely only play into the hands of the opposition and 
frustrate any real chance of reform in the near term. 
Although many members expressed irritation that senior 
coalition members did not take D66's political reform 
proposals more seriously, the majority agreed that D66 
should continue to pursue a broad liberal agenda (of which 
political reform is only one part) within the present 
coalition government. 
 
3. (U) The two larger coalition parties -- the Christian 
Democrats (CDA) and the Liberals (VVD)-- were openly 
relieved at the outcome of the D66 party congress.  PM 
Balkenende recommitted his cabinet to carry on with its 
reform agenda, "which is so badly needed."  CDA floorleader 
Verhagen opined, "The coalition has emerged strengthened 
from this crisis."  Opposition Labor Party (PvdA) leaders, 
on the other hand, reproached D66 of "cowardice" for fearing 
a confrontation with the voters. 
 
COMMENT: 
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4. (SBU) D66's action has preserved the coalition government 
for now, but it is unclear how much damage the de Graaf 
affair will do to D66's long-term credibility.  In addition, 
all three coalition parties are currently declining in the 
polls, and several of the cabinet's policies (and some 
individual members) remain very unpopular.  Balkenende has 
clearly dodged one bullet, but it is not inconceivable that 
he will face other challenges to the current coalition well 
before the scheduled 2007 elections. 
 
Sobel