The cabinet was formed by the conservative-liberal People's Party for Freedom and Democracy (VVD) and the Christian-democratic Christian Democratic Appeal (CDA) after the election of 2010.

The cabinet was a right-wing coalition and had a minority in the House of Representatives but had confidence and supply from the Party for Freedom (PVV) for a slim majority with Liberal Leader Mark Rutte serving as Prime Minister.

Domestically, it had to deal with the fallout of the financial crisis of 2008 but it was able to implement several major social reforms to law enforcement, victims' rights and immigration.

Internationally, it had to deal with the European debt crisis, the war on terror and the government support for the Task Force Uruzgan.

The cabinet fell just 18 months into its term on 23 April 2012 after the Party for Freedom withdrew its support following a disagreeing with the coalition over stronger austerity measures to reduce the deficit following the financial crisis.

Then negotiations for a "purple plus" coalition consisting of the VVD, PvdA, Democrats 66 and GreenLeft lasted for about three weeks, but the parties could not reach agreement on the amount of budget cuts.

In accordance with the People's Party for Freedom and Democracy (VVD) approach to laissez-faire and a small government, the number of ministers and State Secretaries was reduced from the previous cabinet by merging several ministries.

Because of the financial crisis in the Netherlands and because of the rules of the Euro convergence criteria that the deficit should be maximum 3%, the Leaders of the People's Party for Freedom and Democracy Mark Rutte, Christian Democratic Appeal Maxime Verhagen and the Party for Freedom Geert Wilders decided to talk with each other about new, severe austerity measures, worth about 14 billion Euro.

On 16 December 2011, Minister of the Interior and Kingdom Relations Piet Hein Donner (CDA) resigned after he was nominated as the new Vice-President of the Council of State succeeding Herman Tjeenk Willink.