New Zealand’s National Party clinches deal to form government
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Mr Christopher Luxon leads the National Party that promises relief for struggling middle-income New Zealanders.
PHOTO: REUTERS
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WELLINGTON - New Zealand’s National Party said on Nov 23 it has reached an agreement with ACT New Zealand and New Zealand First (NZ First) to form a government, ending weeks of negotiations and political uncertainty with the country under a caretaker government.
The centre-right National Party won the largest share of votes
Negotiations have dragged on as the three parties had to agree on a political agenda for the coming three years and allocate ministerial positions.
“I’m very pleased to announce that we’re in a position where we’ve concluded negotiations with the respective parties. Those agreements are now before the parties for ratification, which we hope to have this evening,” incoming prime minister Christopher Luxon told reporters.
“We are genuinely excited.”
Both NZ First’s leader Winston Peters and ACT’s leader David Seymour confirmed negotiations had concluded.
The conservative National Party won over voters by promising relief for struggling middle-income New Zealanders, and to bring historically high inflation under control while reducing the country’s debt.
It is expected to announce plans to return the central bank to a single mandate of targeting inflation of 1 per cent to 3 per cent.
The formation of the new coalition government will bring to an end six years of left-wing government led by Labour.
Labour lost the support of many New Zealanders who were disgruntled over the country’s long Covid-19 lockdown and the rising cost of living.
New Zealand operates a mixed member proportional system, which means coalition governments are the norm, and historically, it takes roughly a month for a government to be formed but can take longer.
A detailed breakdown of the new government’s policy agenda is expected to be released on Nov 24. Ministerial appointments are also expected to be announced then. REUTERS
