Narikaton and Darnussia

[Mbites]

Breaking: Great Reform Party and VVP agree to form coalition cabinet

June 5619

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President Fein leaving the GRP headquarters

President Fein’s first challenge has been successfully overcome as the newly elected GRP politician managed to come to an agreement with the VVP to form a grand coalition. This comes as the first try to form a four-party government with the smaller centrist parties and the DRP failed. According to the agreement between the GRP and the VVP, the VVP has strongarmed important ministerial positions as a condition to form a coalition. The VVP will occupy the Foreign Ministry and the Finance Ministry as well as Economic Affairs. The rest will go to the GRP. From a policy standpoint the agreement sees to reduction of the Defence Spending which is now possible due to the naval capacities being reduced to pre-crisis levels. Many were anxious to see what kind of agreements the two rivals were going to achieve when it comes to taxation and subsidies. It seems like the GRP has agreed to subsidies in the form of tax exemptions for corporations that report believable growth perspective and those that are able to stabilize the trade situation after the Neset has taken a hit in stability following the last decade of uncertainty. While many have voiced an uneasy feeling over the formation of this government it seems that for now that the political situation is stable. Critical opinions were perceivable from all sides but most of them came from the Thallerists as they think that their strong gains in the last election should be seen as a mandate to govern together with the GRP.