Dutch Reach Coalition of Liberals and Labor

Will work together to cut public spending

DUTCH PRIME minister Mark Rutte and his centre-right Liberals have reached agreement with the Labour Party to form a new coalition government expected to make cuts of €16 billion in public spending over the next four years.

The deal was agreed on Sunday night and confirmed yesterday by Mr Rutte and Labour leader Diederik Samsom just 47 days after the election that gave the two parties a working majority between them of 79 seats – 41 for the Liberals and 38 for Labour – in the 150-seat parliament.