To form a government, the National Party had to rely on a coalition with the right-wing liberal ACT and the populist anti-immigration party New Zealand First. After difficult negotiations, they only reached an agreement last week.
During the first half of the three-year legislature, New Zealand First party leader Winston Peters is the deputy prime minister. That position will then go to ACT President David Seymour. As minister, Peters will be given the Foreign Affairs portfolio.
Jacinda Ardern’s social democratic Labor Party has been in power in New Zealand for the past six years. She surprisingly resigned in January and was replaced by Chris Hipkins.
Luxon is a successful businessman who worked for the consumer goods group Unilever for a long time and was also CEO of the New Zealand airline Air New Zealand. The 53-year-old has only been in parliament since 2020.
“It is an honor and a huge responsibility,” Luxon told journalists after being sworn in. “The most important task is to restore the economy. We need to lower the cost of living and curb inflation to lower interest rates and make food more affordable.”