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Concessions help Dutch form new government

AMSTERDAM, Netherlands, Oct. 30 (UPI) -- The Netherlands' center-right Liberal and center-left Labor parties have agreed to a centrist government after 47 days of talks following September elections.

Both parties agreed to concessions that will move the government to the center after a coalition with anti-Europe populist Geert Wilders moved it to the far right, The Financial Times reported Monday.

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Liberal Prime Minister Mark Rutte, in a joint press conference with Labor leader Diederik Samsom, said many of the concessions had been "painful."

Samsom said it was "impossible to talk about being joyful at this accord."

The Liberals agreed to cut back sharply on the tax deduction for mortgage interest while Labor agreed to reduce eligibility for unemployment insurance from three years to one and to accept tax cuts that dropped the top marginal rates from 52 percent to 49 percent.

Samsom added the new government would have an "open attitude" towards Europe, a dramatic turn from the previous resistance to mutualizing European debt.

Observers said the move to the left was not likely to have much effect on Dutch eurozone policy. Rutte is bound by a campaign pledge to oppose any new aid packages for Greece.

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Parliament is expected to debate the agreement next week, DutchNews.nl reported

The new cabinet of 12 full ministers and seven junior ministers will probably be sworn in next week, Rutte said Monday night.

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