The cabinet was a centrist grand coalition and had a substantial majority in the House of Representatives with Labour Leader Wim Kok serving as Prime Minister.

On 6 May 1994 Queen Beatrix appointed President of the Senate Herman Tjeenk Willink (PvdA) as Informateur to start the cabinet formation process.

The first round of negotiations were troubled by objections from the Leader of the People's Party for Freedom and Democracy Frits Bolkenstein, in the end an agreement was reached to form a coalition.

On 14 May 1994 Queen Beatrix appointed President of the Association of Netherlands Municipalities Klaas de Vries (PvdA), a former Member of the House of Representatives and Gijs van Aardenne (VVD), a former Deputy Prime Minister and Minister of Economic Affairs and Senator Jan Vis (D66), a professor of Constitutional law at the University of Groningen as Informateurs.

On 3 June 1994 party leaders Wim Kok (PvdA), Frits Bolkenstein (VVD) and Hans van Mierlo (D66) reached an agreement to begin the cabinet formation.

On 6 July 1994 Queen Beatrix appointed Wim Kok as Informateur to write an open coalition proposal with the possibility of other parties to join the agreement.

The aim of the cabinet was to increase the influence of markets in the economy, with policies of tax reduction, economizing and trying to keep people out of the social care by supporting employment.