Dutch Prime Minister Mark Rutte has finalized a deal to form the next four-party coalition government, ending the country's longest alliance talks since World War II, Reuters reported.
The right-wing Liberal VVD party, led by Rutte, was the last of the four parties to approve the new coalition agreement, DutchNews.nl reported.
Rutte will be the only one of the four party leaders who will be part of the cabinet. He is expected to start picking officials after the parliament debate on the pact, with the cabinet expected to be installed by the end of this month.
The progressive D66's Alexander Pechtold, the conservative Christian Union's Gert-Jan Segers, and Sybrand Buma of Christian Democratic Appeal will all remain in the lower house of parliament to maintain party discipline.
The new coalition will be more right-leaning than the outgoing government of the VVD and the center-left Labour Party, Reuters noted.
The coalition agreed to limit financial allowances for asylum seekers in the first two years of their stay. The new government also plans a reduction in income taxes of around €6 billion that will benefit the wealthy and middle classes and to lower the corporate tax rate to 21% from 25%.
The Netherlands' budget office said the government's plans would increase GDP growth by 0.2 percentage points annually through 2021, with average growth projected at 2%.