After months of talks, the final touches are being put to the four-party coalition agreement, which could be finished as early as Monday, the AD has reported.

Once the agreement between the two Liberal parties (VVD and D66) and two Christian parties (CDA and ChristenUnie) has been finalised, it will be presented to the four parliamentary parties for approval.

Parliament will then debate the plans and after that, prime minister Mark Rutte will assume the role of ‘formateur’ and begin the process of recruiting ministers. Insiders say the new cabinet is likely to be presented to the king and the public in the week of October 23.

The Netherlands went to the polls on March 15 and this is the longest formation period ever.

Asset taxes

Meanwhile, broadcaster NOS suggests the new cabinet may also be planning to cut asset taxes by increasing the tax-free limit from €25,000 to €30,000. Assets include savings, shares, art, second homes and other assets.

The cut would benefit people with more than €25,000 in assets by some €60 a year, NOS said. The parties have also agreed to cut the effective tax rate itself, with is currently around 4%, well above actual returns booked on savings.

The new cabinet is also planning to reform the income tax system, NOS said at the weekend.