The cabinet was formed by the christian-democratic Christian Democratic Appeal (CDA) and the conservative-liberal People's Party for Freedom and Democracy (VVD) after the election of 1977.

The cabinet was a centre-right coalition and had a slim majority in the House of Representatives with Christian Democratic Leader Dries van Agt serving as Prime Minister.

In the end Van Agt found that the demands of the Den Uyl were too great and instead he formed a coalition with the People's Party for Freedom and Democracy.

The cabinet had to deal with a major economic depression, but refused to cut government spending due to fierce left-wing opposition in the parliament, which had nearly half of the seats.

On 5 March 1978 Minister of Defence Roelof Kruisinga (CHU) resigned in-protest after the cabinet decided to not publicly condemn the United States for further developing the Neutron bomb.

On 22 February 1980 Minister of Finance Frans Andriessen (KVP) resigned after disagreeing with the cabinets decision to not implement a stronger austerity policy.

On 1 September 1981 ten days before the new cabinet took office Minister for Housing and Spatial Planning Pieter Beelaerts van Blokland (CDA) resigned after he had been appointed Mayor of Apeldoorn.