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10/29/12

Netherlands: Dutch Parties Reach Deal to Form Government - by Maarten van Tartwijk

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 Labor 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 Monday morning before being presented to the public.

The deal follows a relatively short period of coalition talks after the Sept. 12 general election. Messrs. Rutte and Samsom had vowed to reach a deal quickly in light of the euro-zone 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. The two leaders are expected to outline their plans in a news conference later Monday. The new government will likely be installed next week.

Earlier this month the leaders struck a deal on a 2013 austerity budget in order to bring the national deficit below the European Union limit of 3% of gross domestic product.

Read more: Dutch Parties Reach Deal to Form Government - WSJ.com

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