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New Zealand's National Party Forms Coalition Government with ACT and New Zealand First

Coalition Plans Tax Cuts, More Police, and Changes to Reserve Bank Mandate; Deputy Prime Minister Role to be Shared

  • New Zealand's conservative National Party, led by Christopher Luxon, has formed a coalition government with the right-wing ACT and populist New Zealand First parties, six weeks after the general election.
  • The deputy prime minister role will be shared between New Zealand First leader Winston Peters and ACT leader David Seymour, with Peters serving the first 18 months and Seymour the remainder.
  • The new coalition government plans to cut taxes, train 500 more police within two years, and change the mandate of the nation's Reserve Bank to focus solely on keeping inflation low.
  • The coalition will also remove references to the 'principles' of the Treaty of Waitangi, New Zealand's colonial-era founding document, from legislation and consider holding a referendum to redefine its principles.
  • The coalition agreement marks a shift to the right for New Zealand, but foreign policy and international relations are expected to remain largely unchanged.
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