New Zealand election leaves National and Labour nearly deadlocked

2 min read
New Zealand election leaves National and Labour nearly deadlocked
PrimeXBT Editorial Team
Reviewed by PrimeXBT

New Zealand's National and Labour parties were nearly deadlocked in the popular vote, leaving the next government unclear. The final count, including special votes, will not be released until November 27. Until then, the National-led coalition stays on as a caretaker government.

New Zealanders were unlikely to have much clarity on who will govern for the next three years after preliminary results showed National and Labour both polling at just under 30% of the popular vote. Only a few hundred votes separated the two parties, according to the Electoral Commission.

Coalition projected to secure a two-seat majority

An Electoral Commission projection showed the three-party ruling coalition, led by National, securing a two-seat majority. The election was dominated by a struggling economy and voter disillusionment with the two largest parties.

However, the final count may change that picture. It will include special votes, which have historically favoured left-leaning parties, and will not be released until November 27. The coalition, led by Prime Minister Christopher Luxon, continues to operate as a caretaker government in the meantime.

The Opportunity Party could decide the outcome

If the National-led coalition loses its majority at the official count, either it or a left-leaning coalition would need the support of the centrist Opportunity Party, which looks likely to enter parliament for the first time. Luxon has repeatedly ruled out working with Opportunity.

Mona Krewel, a senior political science lecturer at Victoria University of Wellington, said the two could still cooperate. According to Reuters, she described the party as "very centrist, very pragmatic" and said National could make it work.

Tactical voting reshapes seat balance

National and the minor party Te Pati Maori each won a disproportionately high share of constituency seats relative to their popular-vote support, because of tactical voting. The result has sparked debate about the electoral system.

Political commentator Ben Thomas said it looks as if New Zealand is on track for the least proportional parliament it has had.

Source: Reuters via Investing.com

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