Talks between the right-wing VVD and Labour party PvdA on forming a new government are as good as completed, Nos television reports on Monday.
A final agreement may be reached by the end of this week or beginning of next, Nos says, quoting sources from both parties.
Labour and the VVD have been negotiating about a new coalition for the past month after both parties emerged as the big winners in the September general election.
Various names are already circulating for potential ministers and many pundits expect Labour to be given the foreign affairs ministry job.
The two parties have already agreed to scrap the planned tax on travel expenses and the fine for slow students. The tax on insurance will be doubled to pay for this.
They also plan to abolish student grants and give local councils more powers to decide whether or not to allow shops to open on Sunday.
The Financieele Dagblad says on Monday insiders also expect the new coalition to ditch the outgoing government’s plans to reform mortgage tax relief and develop instead a phased reduction in the tax break for all mortgage holders.
The VVD took 41 seats in the September vote and Labour won 38, giving the tentative coalition a majority of four seats in parliament.
Once agreement between them has been reached, it will be assessed by the government’s macro-economic advisory body CPB for the likely effect on the economy and individual spending power.
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