Investing.com -- On Tuesday, a slight majority in the Dutch parliament advised the government to refrain from participating in the newly agreed European Union (EU) plans intended to bolster European defense. This would be achieved through relaxed fiscal rules and collective borrowing.

European leaders, including Dutch Prime Minister Dick Schoof, praised the proposals last week. The plans provide EU member states with fiscal leeway on defense expenditure, and propose a joint borrowing of up to 150 billion euros ($160 billion). This borrowed amount would then be loaned to EU governments for their military spending.

However, the financing arrangements faced opposition from three out of four parties in the Dutch government coalition. These parties supported a motion put forward by a conservative opposition group.

This motion is not mandatory and the government’s response remains uncertain.

The European Commission is in the process of detailing these plans. The decision could be made with a qualified majority of EU governments, meaning that no single country could veto them.

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