Jan Peter Balkenende, the Dutch prime minister, steered his ruling coalition towards the centre ground on Wednesday with a programme including increased spending on social policies and the environment and a softer stance on immigration.

In a retreat from some of the harsh policies of Mr Balkenende's previous three administrations, the agreement between his Christian Democrats and his Social Democrat (PvdA) and Christian partners, called for eased spending restraints to help families and the less well-off. He also agreed a pardon for asylum seekers resident since before 2001, when entry laws were tightened.