German Chancellor Angela Merkel agreed to a national minimum wage and to increased spending on pensions and infrastructure while holding firm to her refusal to raise taxes in a coalition accord with the Social Democrats.
Germany’s Social Democrats widened demands on workers’ pay in the last 72 hours of coalition talks with Chancellor Angela Merkel’s bloc, prompting industry fears that the country’s labor-market rules are being unraveled.
German Chancellor Angela Merkel’s top Bavarian ally said her bloc will concede to the Social Democrats’ demand for a minimum wage, signaling the parties will overcome a chief hurdle in talks to form a government.
Chancellor Angela Merkel’s Bavarian allies warned the Social Democrats to reel in their spending demands, citing “difficult days” ahead as they aim to complete talks to form a German government by the middle of next week.
European Union ministers overcame German unease on direct aid to lenders and agreed on rules for how public funds can be made available for banks shown to have insufficient capital in upcoming balance-sheet checks.
Chancellor Angela Merkel will meet with leaders of the opposition Social Democrats today in a bid to lay the ground for a new German government, 12 days after she won her party’s best election victory since 1990.
Germany’s Social Democrats want to strip euro policy making from the Finance Ministry in Chancellor Angela Merkel’s third term, according to three people familiar with the party’s negotiating strategy.