Crisis talksFor the conclusions of the Davids report in English, click here.
The three coalition party leaders spent most of Wednesday in crisis talks to draw up a new response to the report. In Wednesday evening's letter, the prime minister said: 'Based on what we know now, the cabinet accepts that a more adequate legal mandate would have been necessary for such an action.'
Labour's parliamentary leader Mariëtte Hamer said the new statement meant the report had been 'removed from the waste bin'.
But opposition MPs were not so easily appeased. Alexander Pechtold, leader of the Liberal democratic party D66, said he had to ask if Balkenende's initial dismissal of the report was due to 'the arrogance of power' or 'clumsiness'.
Commentators said on Thursday the new statement appeared to have headed off a cabinet crisis.
Before the parliamentary debate on the letter, Balkenende said this was not the right moment for a crisis - referring to the economic problems facing the country.