The newly-formed Amsterdam coalition presented its policy agreement at a press conference on Thursday afternoon.

The Liberal democratic D66 finally formed a coalition, ten weeks after the local elections, with the VVD Liberals and the Socialists.

The three partners have agreed to create more affordable housing in the city, both rental and for sale. They will do this by opening up Amsterdam to new housing corporations. ‘For all parties willing to build,’ D66 leader Jan Paternotte said.

The coalition wants at least 500 extra social housing units every year, with prices for middle-income earners between €700 and €1,000 a month.

It is also getting rid of the ground rent (erfpacht) system by allowing house owners who want to to pay off the rent in one go. The ground will, however, remain the property of Amsterdam.

There will also be extra money for education. Care will be organised at a neighbourhood level with the choice of the person needing the care paramount.

Other points include:

* The cost of a parking space for people living in the city will go up by 25%.

* Child poverty will be tackled with more sport and music activities for children.

* There will be a councillor responsible for sustainability.

* More support for entrepreneurs with some lower taxes.

* Substantial cuts in subsidies and council purchasing and buildings, including in the red light district.

* Dog tax is being abolished.

The new coalition marks three firsts: the first time D66 is the largest party; the first time the Socialists sit on the council; and the first time since 1945 Labour is not part of the coalition.