Former spy chief Dick Schoof was sworn in as Dutch Prime Minister on Tuesday, with far-right leader Geert Wilders lurking behind the throne.
Mr Schoof, 67, is the compromise choice to lead a four-party coalition that has promised the “strictest ever” immigration policy in the Netherlands.
He succeeds Mark Rutte, who is stepping down after 14 years in office and will become Nato's next secretary general in October.
King Willem-Alexander swore in Mr Schoof and his cabinet at the royal palace, 223 days after Dutch voters went to the polls.
The November election delivered a shock victory for right-wing firebrand Mr Wilders and his anti-Islam Freedom Party, which became the strongest force in parliament.
But coalition partners were unwilling to install Mr Wilders as prime minister despite his offer to put more radical anti-Islam policies “in the fridge”.
The talks eventually settled on Mr Schoof, the former head of the Dutch General Intelligence and Security Service, as an outside choice to lead the government.
Mr Schoof, who has no party, has said he will be “a prime minister for all Dutch citizens” and does not see himself “kowtowing to Mr Wilders”.
However, he has vowed to implement “decisively” a 26-page coalition agreement in which “getting a grip on migration” is a key focus.
The government is seeking an opt-out from EU asylum and environmental rules under the agreement called “Hope, Courage and Pride”.
Under the deal the Netherlands will “minimise the inflow of migrants” by freezing asylum decisions and pushing refugees to the back of the queue for housing.
Permanent asylum permits are to be abolished and family policies made stricter so that only children can join their immediate relatives.
Ministers will also consider moving the Dutch embassy in Israel to Jerusalem, according to the deal between the Freedom Party, Mr Rutte's liberal VVD, farmers' movement BBB and anti-corruption party NSC.
The coalition wants a new international tribunal to look into crimes by ISIS and says democracy is being “threatened by Islamic terrorism”.
However, Mr Wilders has had to back down on his support for a “Nexit” from the EU, with the government saying it will remain a “constructive partner” in the bloc.
The agreement says “firm action will be taken” against anyone guilty of anti-Muslim hatred, anti-Semitism or racism.
Mr Wilders, who last week fired off a fresh anti-Islam tirade on social media, is not joining the cabinet himself but his shadow will loom large over the new government.
But the 15-person cabinet includes several picks of Mr Wilders, who were sworn in as the first Freedom Party ministers in its 18-year history.
They include several who in the past have claimed that the government was actively working on replacing the Dutch population with immigrants.
Mr Schoof has been described as a “loyal and dedicated civil servant” by opposition leader Frans Timmermans, whose Labour Party came second to Mr Wilders at the election.
In his law enforcement career Mr Schoof was involved in the MH17 plane crash investigation that found a Russian-made missile was responsible for killing all 298 people on board. More than half of them were Dutch.
