Wellington, New Zealand – Negotiations between the National and ACT parties in New Zealand are progressing positively, with both sides expressing optimism about reaching a coalition agreement.

National leader Christopher Luxon and ACT leader David Seymour have been meeting regularly to discuss policy areas and a potential working relationship. Seymour has indicated that the parties are close to finalizing a draft agreement, which could be unveiled in the coming days.

“We’ve had several weeks of really productive discussions,” Seymour told reporters on Tuesday. “We’re getting close to having a draft agreement.”

Luxon echoed Seymour’s sentiment, stating that the parties are “making good progress” in their negotiations.

“We’re working together to form a stable and effective government that will deliver for all New Zealanders,” Luxon said.

The two parties share similar ideologies, with both advocating for lower taxes, less government regulation, and a strong focus on economic growth. However, there are some areas of disagreement, such as climate change policy and the role of the state in the economy.

Despite these differences, both parties are keen to form a government that can implement their shared agenda. If they are able to reach an agreement, they will likely need the support of a third party, such as New Zealand First, to hold a majority in Parliament.

New Zealand First leader Winston Peters has previously said that he is open to working with either National or Labour, but he has not yet indicated which party he favors.

The outcome of the coalition negotiations will have a significant impact on the direction of New Zealand. If National and ACT are able to form a government, they are likely to pursue policies that reduce the role of the state in the economy and prioritize individual rights and freedoms.

If Labour is able to retain power, it is likely to continue its focus on social justice, environmental protection, and reducing inequality.

The outcome of the coalition negotiations is expected to be known in the coming days.