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Merkel talks tax to break coalition deadlock

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Merkel talks tax to break coalition deadlock


The German Chancellor has been chairing talks between her conservatives and the Free Democrats to break a deadlock over forming a centre-right coalition

Angela Merkel’s Christian Democrats and Bavaria’s Christian Social Union have been at loggerheads with the business-friendly party since last month’s election. Whilst the three parties have agreed on a range of issues, the biggest obstacle is the scale of tax cuts and how to fund them. A further sticking point is the financing of Germany’s health fund which needs a 7.5 billion euro cash injection. But the nuclear issue proved to be most explosive for protestors outside the meeting. The parties have agreed to try to extend the working lives of some nuclear power plants, but details are unclear. Some reports suggest the extensions could last 10 years.

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