Dutch parties agree pact for government

HOLLAND: Three far-right and centre-right parties have reached a deal paving the way for a new government in the Netherlands…

HOLLAND: Three far-right and centre-right parties have reached a deal paving the way for a new government in the Netherlands, more than six weeks after an election overshadowed by the murder of populist politician Pim Fortuyn.

The Liberal Party (VVD), Fortuyn's populist Pim Fortuyn List (LFP) and the conservative Christian Democrats (CDA) will present the deal to parliament for approval and the government is expected to take office in the middle of next month.

The future coalition government is to incorporate some of Fortuyn's tough proposals on stemming immigration and asylum- seekers and cracking down on crime in the traditionally liberal country, and is also expected to introduce measures of economic austerity.

"In the beginning, everyone will have to swallow the pill," said CDA leader Mr Jan Pieter Balkenende, whose party was the biggest winner in the May 15th election, gaining 43 seats in the 150-member parliament.

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Last month, the three parties agreed that immigrants would not be allowed to request political asylum if they entered the Netherlands without identity papers - which the press says is the case for some 80 per cent of asylum seekers.

The parties also said at the time that they would attempt to allow the "least possible number" of immigrants to enter the country, particularly by limiting the number of family members immigrants can bring in.

The economy also figures high on the coalition's agenda, with a proposed austerity programme that would save the state some €6.5 billion. But weak economic growth means proposals to cut fuel tax and property deductions can only be implemented in 2004 or 2005.

The three parties also plan to restructure some government offices, including the office which deals with the 900,000 people considered incapable of working.

The government pact was preceded by 35 days of talks between the parties and Mr Piet Hein Donner, a CDA member appointed as negotiator by Queen Beatrix. - (AFP)