The puzzle of Dutch welfare state retrenchment

Abstract

In the literature on welfare state retrenchment and in the general emphasis on the resilience of welfare states, the Dutch case appears puzzling by virtue of the fact that significant retrenchments have actually taken place in the Netherlands. It appears even more puzzling considering that the arguments in this literature as to the difficulties in welfare state retrenchments apply very well to this case, whereas the arguments as to why after all welfare state retrenchments are possible do not apply particularly well. This article argues that the explanation for the Dutch puzzle should be found in Dutch politics. Due to the power of the CDA as a pivotal centre party, the PvdA was at an early stage forced to accept welfare state retrenchment. A party consensus thus emerged allowing Dutch governments to define the issue of welfare state retrenchment as a matter of economic necessity.