Netherlands Government resigns over childcare subsidies

The Netherlands Government led by Mark Rutte collectively resigned on January 16, 2021 amid an escalating scandal over the mismanagement of childcare subsidies.

What is childcare subsidies scandal?

  • The Netherlands tax office had accused over 26,000 Dutch parents of fraudulently claiming child welfare payments between 2013 and 2019.
  • The office demanded repayments of tens of thousands of euros, driving many families into financial ruin and, in some cases, divorce.
  • A parliamentary report called it an “unprecedented injustice” to claw back tens of thousands of euros without giving the accused a chance to prove their innocence.
  • Dutch PM Rutte described the episode as “shameful.” After resigning from the post, the PM said that he would only stay on in a caretaker capacity until a new government is formed following the upcoming general election.

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