For the elections of 1977 and 1981 Terlouw served as "Lijsttrekker" (top candidate) and following a cabinet formation with Christian-democratic Leader Dries van Agt and Labour Leader Joop den Uyl formed the Cabinet Van Agt II with Terlouw appointed as Deputy Prime Minister and Minister of Economic Affairs taking office on 11 September 1981. The cabinet fell just seven months into its term and was replaced with the caretaker Cabinet Van Agt III with Terlouw continuing his offices. For the election of 1982 Terlouw again served as "Lijsttrekker" but shortly thereafter announced he was stepping down as Leader on 8 September 1982.