Costs, Income and Fortune of the Dutch Royal Family


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Well, apart from that politicians try to make a story of it that isn't there, what imo *is* clear is that the Oranje family cares more about money than about history, otherwise they'd consider keeping it in the country even if they wouldn't officially have to.

But that the Oranjes like money is not new :lol:

That is not really true: almost no any royal family has placed so many valuables into foundations, exactly to preserve it for the future! The amazing collection showed at the Anna Paulovna Exhibition proves the Oranges managed it with care.

This painting was in horrorful state and the family ordered it's restoration. Undoubtedly for a good sale but how would you divide this huge painting with the 13 other grandchildren of your late grandmaman?
 
Yes, Juliana might have foreseen this coming when she created the foundation; had the jewels foundation not been there, i expect a bunch of that would have been sold as well, exactly for the reason you state above.
 
Yes, Juliana might have foreseen this coming when she created the foundation; had the jewels foundation not been there, i expect a bunch of that would have been sold as well, exactly for the reason you state above.

Yes, Queen Wilhelmina and Queen Juliana were unique in being the sole general heirs of their predecessor. Had Queen Juliana not created funds then the law would have peeped around the corner: at least the inheritance was divided in 9 parts (5/9 for Prince Bernhard, 1/9 for Queen Beatrix, 1/9 for Princess Irene, 1/9 for Princess Margriet and 1/9 for Princess Irene). Not to mention the 14 grandchildren and possible other beneficiaries of her inheritance.

Money hungry or not money hungry Oranges: had Queen Juliana not created these foundations, Queen Beatrix would have been forced to compensate her three sisters for their share. And later again when Prince Bernhard died... It would have exhausted her financial means completely, while she had an heritage to pass to her son Willem-Alexander. Her three younger sisters could continue to live as überwealthy ladies without worries, in comparison with their eldest sister, with an empty bank account but a full attick...
 
According to RTL, the royal family has for decades received a -secret- compensation by the state for their capital tax (vermogensbelasting). The news station looked at secret goverment documents form 1969-1973; Queen Juliana received compensation for the tax that she had to pay from 1973 onwards. In 1973 the amount, which was 150.000 guilders in 1973. The number at the moment is unknown, but is included in the dotation of the king.

It was prince Bernhard -who else- who made sure that the compensation was added to the agreement about the tax agreement. The highest public servant at the ministery of finance wrote at the time to the cabinet members that he did not agree with the decision.

Oranjes krijgen al tientallen jaren compensatie voor betalen belasting - RTL Nieuws
 
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As a Dutch citizen I think this is rather unfair. This makes them seem much better than they are. They either pay taxes or they don't. This is stupid.
 
As a Dutch citizen I think this is rather unfair. This makes them seem much better than they are. They either pay taxes or they don't. This is stupid.

NRC Handelsblad seems to hint that this has to do with the donation of the Crown Domains to the State. The monarch always received revenues from these privately owned Crown Domains (the vast lands around Het Loo on National Park De Veluwe). Princess Wilhelmina gave these domains as a gift to the State but the monarch could still enjoy revenues.

In the 1960's a commission found out that year after year Queen Juliana had to use her private money because of deficits in the budget of the Royal House. This was the reason this commission was established to review the finances and it came up with the Act on the financial statute of the Royal House 1972, exactly the period where RTL is speaking about. Apparently as part of the new income structure, the revenues from the Royal Domains were taken into a sort of transfer period, as these were always free from taxation because it was used to fund the workings of the Royal House.

We will know soon enough when the Prime Minister will answer the questions.
 
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NRC Handelsblad seems to hint that this has to do with the donation of the Crown Domains to the State. The monarch always received revenues from these privately owned Crown Domains (the vast lands around Het Loo on National Park De Veluwe). Princess Wilhelmina gave these domains as a gift to the State but the monarch could still enjoy revenues.

In the 1960's a commission found out that year after year Queen Juliana had to use her private money because of deficits in the budget of the Royal House. This was the reason this commission was established to review the finances and it came up with the Act on the financial statute of the Royal House 1972, exactly the period where RTL is speaking about. Apparently as part of the new income structure, the revenues from the Royal Domains were taken into a sort of transfer period, as these were always free from taxation because it was used to fund the workings of the Royal House.

We will know soon enough when the Prime Minister will answer the questions.



It is!! Waiting for the big answer of the Prime Minister. But I have no big illusions of it...
 
It is!! Waiting for the big answer of the Prime Minister. But I have no big illusions of it...

Usually the answers are very detailed, with references to earlier agreements et al. When the Government answers in 17 sheets A4, the media picks only once sentence. With other words: blowing up everything and when then the details come maybe, if lucky, a small article on page 7 or so.

The private tax assessments of the Royal House have to be handled by the inspector of the Tax Revenue Service, district The Hague himself and has to be reported to the State Secretary of Finances. The current Minister of Finances already stated that the tax-exemption as mentioned by RTL is not known to him.

Only recently the Act on the financial statute of the Royal House has been reviewed and modernized. A couple of years ago a special commission chaired by former Minister of Finances Gerrit Zalm has completely reviewed the King's Budget. Since then the way of accounting, reporting and the budgetting methods have been modernized. We will see what the Prime Minister will say.
 
Usually the answers are very detailed, with references to earlier agreements et al. When the Government answers in 17 sheets A4, the media picks only once sentence. With other words: blowing up everything and when then the details come maybe, if lucky, a small article on page 7 or so.

The private tax assessments of the Royal House have to be handled by the inspector of the Tax Revenue Service, district The Hague himself and has to be reported to the State Secretary of Finances. The current Minister of Finances already stated that the tax-exemption as mentioned by RTL is not known to him.

Only recently the Act on the financial statute of the Royal House has been reviewed and modernized. A couple of years ago a special commission chaired by former Minister of Finances Gerrit Zalm has completely reviewed the King's Budget. Since then the way of accounting, reporting and the budgetting methods have been modernized. We will see what the Prime Minister will say.

Very much the same.RTL is behaving like a rag while Parliament has yet another doorstep to trip over or so they pretend..All amazement et tralala over nothing..But ofcourse,matters were already deald with recently,so there's really not all of a big big deal here.And NRC btw,has since long lost the predicate of being a Class A evening paper.

But it DOES become annoying that time after time there's this tiresome and uncanny non-discussion about costs of this or that,that should stop.
 
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At his press conference after the weekly Council of Ministers, the Prime Minister, Mr Mark Rutte, stated that neither Princess Beatrix nor King Willem-Alexander are aware of any arrangement made in the early 1970's. In every case there is not something like "a return on private wealth tax" as RTL News did put it (and which was immediately spread furtherer by all other media).

The Prime Minister stated that his department "still has to investigate three meter of files in the National Archives around the Act on the financial statute of the Royal House 1972". Then he will answer all questions of Parliament.

That Princess Beatrix and King Willem-Alexander are not aware is indeed likely. Since 1972 the State grants an income to the present, the future and the former King (and their spouses). The amounts were once calculated in 1972 and since then it raised with the general indexation for all civil servants. How would Princess Beatrix of King Willem-Alexander ever have known that in the original calculation of this sum there was maybe a compensation for the loss of income from the Crown Domains or something?

They just have an annual Budget. That Budget is administered by the Thesauriër des Konings (the King's Treasurer) who has an office full with professionals for that. Every year the Rekenkamer (Auditory Chamber) audits the Dienst van het Koninklijk Huis (Royal House Agency) and it has always passed the audit without any problem. Once the Prime Minister stated that the accountancy by the Royal House Agency was a shining example for all ministerial departments, services and agencies!

In short: when Prince Bernhard indeed arranged a compensation for something in the original calculation of the annual income for the King, this was not his responsibility but that of the Cabinet De Jong, which agreed with said arrangement. And it was a responsibility of all successive Parliaments since 1972 which all approved the annual Royal House Budget...
 
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'Koning en prinses Beatrix niet op de hoogte van belastingdeal' | NU - Het laatste nieuws het eerst op NU.nl
Indeed that's the story, but as the Oranjes are very money-conscieus i tend to doubt that really nobody in the family other than P.Bernhard knew.
If indeed it is true than this is a good moment for the Oranjes to make the gesture by themselves to suggest they start paying taxes from now on

google translated

They actually pay all taxes except two:
- the King pays no inheritance taxes
- the (maximum six) receivers of a state income pays no income tax

That the King pays no inheritance taxes is because the properties of the family were (and are) used for the royal function. After all the carriages, the tableware during state banquets, the jewels adorning the royal ladies, the furniture in the palaces are not from the state but from the family. In the meantime all valuables have safely been placed in foundations, so that article is more or less a dead letter.

That the receivers of a state income pay no income tax is also understandable. They are funded by the state. It makes little sense to give them a higher income and then they have to make tax returns with "aftrekposten" (deductions) which will be hopelessly complicated because what is private and what is functional, etc.

For the rest the King and the members of the royal family pay all taxes as any other Dutchman.

I immediately believe that Princess Beatrix and King Willem-Alexander did not know that Bernhard had been dealing again. Probably Queen Juliana knew but even about her I am not sure. Bernhard seems to have been the one the most interested in money.

In the 1970's the royal finances were reviewed: the costs of the palaces, the pensions of retired staff, the incomes from the domains in Gelderland, Utrecht and Holland, the use of private properties for state functions, etc. On a certain moment, after long negotiations, the Cabinet agreed with a new annual sum and it was calculated with A-components and B-components and whatever more arrangements.

That in 2016 King Willem-Alexander has to know how exactly the Budget was cemented from various arrangements more than 40 years ago is most unlikely indeed. Maybe Princess Beatrix should have known it but it was her adored "Pappie", King Bernhard, who did the deal. And Bernhard was not the type of man to tell his daughter anything. "'None of your business Trix. Daddy does best."
 
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As always there is nagging about the costs of the Royal House. The Raad van State (established in 1531, it is the highest advisory council of the Government as well the supreme Court of Administration: the King is President of the Council) has written some comments about it.

The underlying question is: how much may the monarchy cost us, the taxpayers? Are the Oranges not living a too luxurious lifestyle? Can it not be less, with all that pomp and circumstance? The Council provided an answer, appended to the Budget of the King in 2017.

According the Raad van State, spending on the monarchy can not be separated from the State as well the prestige and dignity of the monarchy. Which, according the Council, "applies in particular to the substantial obligations of representative character. The importance of the State shall entail that these obligations must be met in a befitting way." The Council of State referred to a Government position in 1969/1970. Already 46 years ago the Government stated that members of the Royal House simply have a grander -and costly- structure of their Household. As an example is mentioned: "the level of receptions, revenue and banquets, the representation, ceremonial, clothing, gifts and the like". With other words: palaces, carriages and uniformed footmen give, like a plane, an own extended website, a fleet of cars "cachet and appearance" to the kingship.

Attachment (in Dutch): https://www.google.nl/url?sa=t&rct=j&q=&esrc=s&source=web&cd=1&ved=0ahUKEwjIj6z3zu7PAhVHrRoKHfI3BFEQFggeMAA&url=https%3A%2F%2Fwww.rijksoverheid.nl%2Fbinaries%2Frijksoverheid%2Fdocumenten%2Fbegrotingen%2F2016%2F09%2F20%2Fi-de-koning-rijksbegroting-2017%2F1.-i-de-koning.pdf&usg=AFQjCNEtCCqrM9oKU2ECkonKZHYpzAyMaw&sig2=Rf5zQQNsTOPtm66-xLtPBg&cad=rja
 
The Prime Minister has informed the Second Chamber that there is no "compenastion for wealth taxes" as part of the annual income of the King, as was claimed by RTL News. However it is desireable that it becomes clear what exactly the agreements were which resulted into the amounts as established in the Act on the financial statute of the Royal House 1973. After all: since then the incomes of the King has been based on that calculation and has risen each year when there was a general indexation.

In short one can say that the situation BEFORE the Act from 1973 was:
- The King was exempted from all taxes;
- The King received an income from the Crown Domains;
- The King was compensated for functional and material costs.

Because of the explosion of the welfare state in the 1960's, the booming economy (with booming wages and prices) and because the income from the Crown Domains went down, for years and years Queen Juliana had to finance the proper workings of the monarchy from her private wealth, which led to an undesirable situation.

The deal with the Act from 1973:
- The King, the Heir and the abdicated King (and their spouses) get a personal netto income fixed with general indexation (A-component);
- The named 6 royals also get an annex to their income for functional costs (B-component);
- The State provides in accomodation, staffing, etc.

In return for this agreement:
- The several privately owned Crown Domains became state property with right of usufruct for the King;
- The privately owned Soestdijk Palace and the surrounding domain became state property with right of usufruct for Queen Juliana and Prince Bernhard;
- The tax freedom for the King is ended: he has to pay all taxes except the constitutional freedom of succession taxes for inheritances from the King to the Heir.

There is talk about a freedom of ƒ 750.000,-- (circa € 340.000,--) from taxes because in return no facilities could be claimed for functional costs. With other words, the Tax Revenue Service says: "We do not disturb you for € 340.000,--, in return you do not disturb us with endless deductions for functional costs." All by all it is not that shocking and understandable.
 
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Yesterday saw the debate in the Second Chamber of the States-General (Lower House of Parliament) about the Budget of the King.

Income of the Princess of Orange
Several parties at the left wanted to prevent that Princess Catharina-Amalia, when she turns 18 years old, will receive a personal annual income of € 260.000,-- plus € 1.200.000,-- for expenditures.

The Prime Minister pointed to the Second Chamber that -at their request- in 2008 a Commission lead by former Minister of Finances, Gerrit Zalm, has investigated the finances of the Royal House. As a result a modernized systematic for the finances of the Royal House was introduced. All amounts were known and were voted for, unanimous, by the very same Second Chamber. For an example: the leader of D66, Alexander Pechtold, wanted to prevent Princess Amalia getting this amount but he himself in own person approved it in 2006. The Prime Minister accused some fractions of "populism" and requested "show guts and stand for what you yourself approved". The amounts of the incomes are regulated by "normal law". This means that a normal majority is enough to change it. Not clear is if the Chamber indeed will support an initiative Bill by some left parties to lower the income of the Princess of Orange.

The funding of the costs of the Royal House
The Act on the financial statute of the Royal House 1973 regulates the incomes and the budgets for expenditures of at maximum 6 members of the Royal House:
- The present King (and his spouse)
- The future King (and his spouse)
- The former King (and his spouse)

The incomes of these -at maximum- 6 members have been fixed with the general pay rise of civil servants. But what was the calculation which led to these amounts? Were there fiscal deals or compensations? The Prime Minister promised the Second Chamber to appoint a Commission to review the whole process which led to the Act of 1973. The Chamber agreed with that.

The King has to pay income taxes?
The constitutional income for the -at maximum- six members of the Royal House is a netto amount. All Dutchmen pay income taxes. Some parties thought the King should pay income taxes too.

The Prince Minister rejected the idea. This would mean that the income of the King has to rise, to a bruto amount, after which the tax revenue services slashes it with some 40-50% income taxes and it will lead to endless discussions about tax deductions.

Probably there will be an Inititive Bill by Labour to let the King pay income taxes. However this needs a heavy procedure with two readings: a majority in the Second Chamber, then a majority in the First Chamber (Senate), then elections, then a 2/3rd majority in the Second Chamber and then a 2/3 majority in the First Chamber.

Opening up palaces and the royal burial crypt
D66 thought the summer opening of Noordeinde Palace and the Royal Mews in The Hague was a succes and asked the Prime Minister if this could be repeated. The Prime Minister was open for it, to make it a regular summer opening indeed. The Royal Palace in Amsterdam is open for visitors, almost all year. As is Het Loo Palace in Apeldoorn. The private residence of the King, Huis ten Bosch Palace in The Hague, remains private, for understandable reasons.

D66 wanted a virtual sightseeing of the royal burial crypt in Delft, so that people could visit the underground mausoleum virtually. The Prime Minister rejected the idea: it is the last resting place of members of the royal dynasty. Out of piety and respect the royal burial crypt should be left in peace, so thought the Prime Minister.
 
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The Dutch public broadcaster NOS has learned from public registries that Princess Beatrix has donated the Royal Domain De Horsten (more than 400 hectare of nature reserve in densely populated region The Hague) to her son King Willem-Alexander.

The estate is owned by the royal family since 1845. Usually it is inherited but now the Princess decided to donate it by life. Not known is if she has given something to Prince Constantijn, for an example her private estate Drakensteyn in the lush green forests surrounding Soestdijk Palace.
 
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It is a bit a mystery why Princess Beatrix did this. In the Netherlands gifts to and inheritances by the King are constitutionally excluded from taxation. On itself there is no reason for the Princess to distribute her properties by life.
 
The Dutch public broadcaster NOS has learned from public registries that Princess Beatrix has donated the Royal Domain De Horsten (more than 400 hectare of nature reserve in densely populated region The Hague) to her son King Willem-Alexander.

The estate is owned by the royal family since 1845. Usually it is inherited but now the Princess decided to donate it by life. Not known is if she has given something to Prince Constantijn, for an example her private estate Drakensteyn in the lush green forests surrounding Soestdijk Palace.

Does it have to do with avoiding taxes ? Probably not, as WA is exempt from inheritance taxes as far as I understand.
 
Does it have to do with avoiding taxes ? Probably not, as WA is exempt from inheritance taxes as far as I understand.

Was Beatrix taxed on it after her abdication?

(I know there was a lot of talk just upthread about taxation, but I admit my head is swimming from all the detail and I didn't retain much of it)
 
Was Beatrix taxed on it after her abdication?

(I know there was a lot of talk just upthread about taxation, but I admit my head is swimming from all the detail and I didn't retain much of it)

The members of thr royal family all fall under the normal taxation regime for two exceptions:

- the state incomes to the present, the future and the former King (and their spouses) is a netto income, so no taxation

- inheritances by the King and gifts to the King are excluded from taxation

On itself there was no reason for Princess Beatrix to donate the Royal Domain De Horsten to her eldest son. Like Beatrix herself, or like her mother, or her grandmother, or her great-grandfather, etc. also her son Willem-Alexander could have inherited De Horsten without any taxation.

The lawmaker has thought that the private properties of the King are often "subservient to a proper functioning of the kingship and for the exection of the royal dignity". When generation after generation the art collection, the jewels, the carriages, the palace inventories are taxed, and taxed, and taxed, this would damaging the functioning of the monarchy.

That danger is actually prevented by Queen Juliana when she placed all historic and/or important valuables of the House Orange-Nassau in special foundations. As a foundation is no natural person, it can not die and it has no heirs. So inheritance rules and succession taxes are avoided and the valuable historic collections are kept together for generation after generation. Princess Catharina-Amalia knows that she will have the use all jewels of her great-grandmother Queen Wilhelmina already used: nothing is lost, nothing is diverted to uncles or nephews or cousins.
 
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Thanks for the update, I missed the news.

The press says that the value of the land is estimated at 25 million euros. But on further reading it seems they used the average price of land in the province of Zuid Holland to calculate the total value. The price in Wassenaar -one of the poshest areas of the country- must be much higher. They also did not include the value of the buildings that are located on the estate.

The press has not speculated about the reasons. I suppose the princess may think that in today's volatile political climate the tax/inheritance laws of the king are not set in stone?
 
Thanks for the update, I missed the news.

The press says that the value of the land is estimated at 25 million euros. But on further reading it seems they used the average price of land in the province of Zuid Holland to calculate the total value. The price in Wassenaar -one of the poshest areas of the country- must be much higher. They also did not include the value of the buildings that are located on the estate.

The press has not speculated about the reasons. I suppose the princess may think that in today's volatile political climate the tax/inheritance laws of the king are not set in stone?

If they are written in the constitution though, it should be rather difficult to change them, shouldn't it
 
Yes, the exemption is written in the Constitution and indeed for sensible reasons. When King after King after King, again and again is taxed for something like a Glass State Carriage (picture), then the reflex is to sell it and put it away in a museum, as they are eating away private fortune (while it is only used for the execution of a public function).

Even when Parliamentarians are guests at at State Banquet in the Royal Palace Amsterdam (state owned), they can sit on furniture which is owned by the family, or eat from fabulous gold-, silver, porcelain- and crystalware privately owned by the family (and safely placed in a foundation). It is -for all parties- the best that this exemption exists for the head of state since he is in the unique circumstance to be born into a public office anyway and has no other choice.
 
Now that the King privately owns the Royal Domain De Horsten (picture), we may be fairly sure that the Princess of Orange will have her future private house in Villa De Eikenhorst (picture) on that domain indeed.

Maybe this means that Drakensteyn, the privately owned estate of Princess Beatrix near Utrecht (picture), will become the future residence of Prince Constantijn.
 
Now that the King privately owns the Royal Domain De Horsten (picture), we may be fairly sure that the Princess of Orange will have her future private house in Villa De Eikenhorst (picture) on that domain indeed.

Maybe this means that Drakensteyn, the privately owned estate of Princess Beatrix near Utrecht (picture), will become the future residence of Prince Constantijn.

Fantasy,not sure yet at all.
 
Fantasy,not sure yet at all.

I used the word "maybe". And it is not so far-fetched. The Princess has two sons. We may assume she loves both to bits, equally. The one son gets the Royal Domain De Horsten in Wassenaar. So maybe (there is the word again) Prince Constantijn will get the lush, green and romantic estate Drakensteyn in the province Utrecht?
 
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In October 2016 RTL reported that there was a 'secret' tax deal between the royal family and the state in the 1970s. It was agreed that the monarch would not have to pay tax over his/her private fortune. The deal was reached as the funding for the RF had been insufficient and for years the RF had to use money from their private fortune to meet the functional costs of the monarchy.

On the request of the prime minister a commission of historians was set up to research the matter and yesterday they published their findings in a report of 296 pages.

The chairwoman of the committee, Carla van Baalen denied that the deal was secret. The matter was discussed in parliament by prime minister de Jong. The state wanted to prevent that the royal family had to pay for functional costs from their own fortune. This had the benefit of giving the state more control of the expenditures of the head of state. Van Baalen noted that there was little interest in parliament for the deal.

The prime minister has called the research 'thorough'. Political parties have responded positively, though some used the opportunity to stress that they would like to see the king pay tax over his income.

https://nos.nl/artikel/2205444-geen-geheime-afspraken-met-oranjes-over-vermogensbelasting.html
 
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I think there is a fault in your post: in the 1970's it was actually agreed that the monarch and the members of the royal family would pay taxes over their private income.

Yesterday I was irritated because the reporter of the NOS Journaal stated that "de Oranjes" pay no income taxes (wrong: the King, his spouse and Princess Beatrix get netto incomes from the State, all other members of the royal family pay normal taxes) and that "de Oranjes" pay no inheritance- and gift taxes (wrong: only inheritances by the King and gifts to the King are free of taxes, all other members of the royal family fall under normal tax regime).

It is this sloppy reporting that confirms the widespread idea that "alle Oranjes" (including the De Bourbon de Parmes, the Van Vollenhovens and the Guillermos) receive a state income, live for free and pay no taxes.
 
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Yesterday, in the Second Chamber (Lower House) there was a reading and a debate about Chapter 1 of the State Budget 2018: "The King".

- Recently a commission has deeply investigated how -in the end of the 1960's and the first years of the 1970's- the State agreed with the current Financial Statute for the Royal House, which regulates the financial arrangements. There were rumours that the royal family would have made secret deals, like a compensation, for the fact that they had to pay taxes on their private wealth. The Commission came to the conclusion, in a 300-pages long report, that there was no ground for these rumours: the royal family pays taxes and there are no "deals" with the Tax Revenue Service. So the Second Chamber had no more questions about that.

- the restoration of Huis ten Bosch Palace (see picture) has -again- become more expensive. It is now apporoaching the mark of 70 million Euro (and that while the already expensively restored Oranjesael, is no part of this restoration). The Prime Minister directed the questions to the Minister who has the State Real Estate Agency in his portfolio and remarked "that lessons will be learned for the coming massive restoration of the Inner Court complex" (which houses the Parliament - see picture).

- For years the Socialist Party and D66 (progressive liberals) have requested the Government that the King, Queen Máxima and Princess Beatrix should pay income tax over their state income. (They get a netto income, without taxation, as is regulated in the Constitution). Now D66, who is part of the majority coalition, has ended their attempts to change this. Reason: it needs a change of the Constitution (2/3rd majority in two different elected Parliaments) and there is no any realistic prospect to obtain that majority.

- for the rest no upheaval over the costs for the De Groene Draeck, the royal airplane, the King's properties in Greece and Argentina or the future income of Princess Amalia (who will get 1,5 million Euro a year in 4 years time).

All by all an easy ride for the Prime Minister.
 
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