WSJ: Dutch parties reach deal to form government

29 October 2012

The two Dutch political parties that secured the most votes in last month's election have reached a deal to form a government, which is expected to continue its austerity drive to fix the country's public finances.

The Liberal Party of Prime Minister, Mark Rutte, and the leftist Labour Party of Diederik Samsom reached a deal over the weekend, the parties said late Sunday evening. The agreement will be discussed with the parties' lawmakers on Monday morning before being presented to the public. The deal follows a relatively short period of coalition talks after the September 12 general election. Messrs Rutte and Samsom had vowed to reach a deal quickly in light of the eurozone debt crisis and the challenges facing the Dutch economy.

Mr Rutte is expected to head the new government, while Mr Samsom has said he would remain a member of parliament. Labour has often been critical of the hard-line approach, raising expectations that a new government might soften its stance. The first test will likely arise in the coming weeks, when international creditors discuss whether to give Greece more time to meet its budget targets.

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