New Zealand Labour Will Form Government for First Time in Nine Years

Jacinda Ardern will become New Zealand’s youngest prime minister in more than 150 years after winning the backing of a minor nationalist party to form a coalition government.

After 12 days of negotiations, New Zealand First leader Winston Peters threw his support behind the 37-year-old, saying an economic slowdown was looming and that capitalism needed to regain its “human face.”

The announcement caps a stunning rise for Ardern, who became Labour leader less than two months before the Sept. 23 election and will now take it into office for the first time in nine years. The local currency plunged on concern the new government’s policies, such as a potential cut in immigration, may curb economic growth.