AlHijjah 13, 1433, Oct 29, 2012, SPA -- The Netherlands' liberal party (VVD) and the labour party (PvdA) agreed Monday to form a coalition government, nearly seven weeks after an election dominated by the euro crisis, dpa reported. The new government is seeking 16 billion euros (21 billion dollars) in spending cuts, including shortening the duration of unemployment benefits and higher contributions to health insurance programmes depending on income. "This is a balanced package, which will help the Netherlands emerge stronger from the crisis," caretaker Prime Minister Mark Rutte said in The Hague. "I am proud of what we have achieved," said labour leader Diederik Samsom. Rutte's liberal party won 41 of the 150 seats in parliament in the election, while labour obtained 39 seats. The two parties have also agreed to a cabinet, which is expected to be sworn in next week. Jeanine Hennis-Plasschaert, a 39-year-old conservative member of parliament will head the defence ministry, the first time a woman has held the position in the country's history.
