New Zealand still negotiating to form a government – caretaker govmt will remain for now | Forexlive

New Zealand PM Hipkins and Christopher Luxon have agreed the Governor
General will be advised to extend current caretaker government
arrangements until the new government is formed

New Zealand is inching closer towards forming a government after the election back on October 14.

Incoming prime minister Luxon is engaged in talks with two minor parties – ACT and New Zealand First – to build a government.

New Zealand moved to a mixed-member proportional electoral system in 1996 which makes it harder for a single party to achieve a majority.

Typically, talks are led by the biggest party, in this case National, which offers policies and positions to minor parties in exchange for support.