Dutch PM Balkenende to unveil coalition accord
Source: Reuters
AMSTERDAM, Feb 5 (Reuters) - Dutch Prime Minister Jan Peter Balkenende unveils the coalition accord of his new centre-left government on Monday, likely stopping short of major economic reforms but shifting to a softer stance on immigration. Balkenende's Christian Democrats were forced to enter talks with the opposition Labour party and a small religious party, the Christian Union, after an inconclusive election in November. The draft agreement to form a coalition government, hammered out among the three partners-to-be in weeks of backroom bargaining, will go to the different parliamentary factions for final approval on Monday. Balkenende is not expected to unveil a full cabinet but some key posts may be announced. Labour party leader Wouter Bos appears set to become deputy prime minister and finance minister. It is unclear whether Christian Union leader Andre Rouvoet will take a cabinet post. Weekend media reports said the parties had shelved plans to limit mortgage tax breaks or ease rent controls. The financing of state pensions will be adapted to encourage people to work longer, seen as crucial as large numbers of 'baby boomers' are coming up to retirement, straining health care and pension systems. The coalition also plans to grant an amnesty to unsuccessful asylum seekers who entered the country before 2001, when new tougher rules took effect, Dutch media reported. The NRC Handelsblad newspaper said the agreement assumed average economic growth of 2 percent over the four-year government term, and that the parties were seeking a budget surplus of 1 percent of gross domestic product by 2011. The agreement also calls for extra spending of 800 million euros ($1 billion) for the environment and clean energy, the NRC said, adding the government planned higher taxes on pollution, including a tax on flying.
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