New Dutch government appearing on horizon
Sources in The Hague say negotiations over a new Dutch government are nearing completion.
Daily , which is quoting unnamed spokespeople, reports on Friday that free-market liberal VVD and Christian Democrat are close to agreement on a rightwing minority coalition cabinet. The new government would have to rely on make-or-break support from the anti-Islam, anti-immigrant Freedom Party of maverick MP Geert Wilders.
Economies The final negotiations of the parties centre on substantial budget cuts which are deemed inescapable given the fallout of the financial crisis. Initially, cuts of up to 18 billion euros were mooted, but after the outgoing government proposed some 3.5 billion in cuts for the coming year, the new coalition may be able to reduce its program of cutbacks.
Media commentators are speculating that prime minister designate, economic hardliner Mark Rutte, may be persuaded to accept a "milder" variant of the program, with fewer economies and a gentler phasing in of a later retirement age.
The prospective cabinet would have a shaky single-seat majority in the Lower House. If the coalition accord is approved by the three parties involved, the new Dutch government could assume power by early October.
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