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| German coalition talks to move to next stage after marathon session | German coalition talks to move to next stage after marathon session |
| (35 minutes later) | |
| Leaders of Angela Merkel’s conservative Christian Democratic Union bloc and the centre-left Social Democrats have cleared a first hurdle towards the formation of the next German government after marathon overnight talks. | Leaders of Angela Merkel’s conservative Christian Democratic Union bloc and the centre-left Social Democrats have cleared a first hurdle towards the formation of the next German government after marathon overnight talks. |
| Merkel, the German chancellor, and the SPD leader, Martin Schulz, on Friday morning recommended moving on to formal coalition negotiations after agreeing compromises on a wide-range of issues. | Merkel, the German chancellor, and the SPD leader, Martin Schulz, on Friday morning recommended moving on to formal coalition negotiations after agreeing compromises on a wide-range of issues. |
| “We have realised that the world isn’t waiting for us,” Merkel said at a press conference on Monday morning. “We are convinced that Europe needs a fresh start and have developed the right ideas to go with it.” | “We have realised that the world isn’t waiting for us,” Merkel said at a press conference on Monday morning. “We are convinced that Europe needs a fresh start and have developed the right ideas to go with it.” |
| The Bild newspaper reported that the breakthrough was reached after Merkel’s conservatives ceded to SPD demands for an equalisation of health-insurance contributions made by employers and employees. | The Bild newspaper reported that the breakthrough was reached after Merkel’s conservatives ceded to SPD demands for an equalisation of health-insurance contributions made by employers and employees. |
| Under Germany’s multipayer healthcare system, employers and employees used to contribute an equal amount towards each individual’s statutory “sickness fund”, but since the system was changed in 2005, the insured have increasingly had to shoulder additional payments. | |
| In return, reports indicated that the Bavarian sister party of Merkel’s CDU had succeeded in its goal to limit the number of family members who can be reunited with refugees that have been granted asylum in Germany. | In return, reports indicated that the Bavarian sister party of Merkel’s CDU had succeeded in its goal to limit the number of family members who can be reunited with refugees that have been granted asylum in Germany. |
| A 28-page coalition paper, presented by Merkel as a “give-and-take” compromise, suggests family-reunification arrivals should be capped at 1,000 a month, and overall immigration be capped at between 180,000 and 220,000. | |
| Christian Democrat and Social Democrat leaders also agreed to lower the tax surcharge introduced to fund the reunification of east and west Germany by €10bn (£9bn) by 2021. | Christian Democrat and Social Democrat leaders also agreed to lower the tax surcharge introduced to fund the reunification of east and west Germany by €10bn (£9bn) by 2021. |
| According to a coalition paper leaked to German press on Friday morning, the new government would be prepared to make higher contributions to the EU budget, as well as support “funds for economic convergence and social convergence and support of structural reforms that can be starting point for future investment budget for eurozone”. | |
| In the early stages of exploratory talks this week, it was reported that Germany’s would-be coalition partners had agreed to drop plans to lower carbon dioxide emissions by 40% from 1990 levels by 2020. | |
| Without additional measures, Germany will miss its 2020 emissions target, due to better than expected economic growth. The coalition paper foresees the new government drawing up a timetable for phasing out coal power by the end of this year. | |
| Negotiation talks at the SPD headquarters in Berlin on Thursday night were accompanied by noisy protests by climate change activists and workers in the country’s coal industry. | |
| SPD delegates will vote on whether to move talks to the next stage at a party conference on 21 January. Even then, the Social Democrats’ leaders will still have to sell the coalition to their membership, and will face resistance. | SPD delegates will vote on whether to move talks to the next stage at a party conference on 21 January. Even then, the Social Democrats’ leaders will still have to sell the coalition to their membership, and will face resistance. |
| If talks fail, Merkel’s only remaining options will be to form a minority government or hold new elections. | If talks fail, Merkel’s only remaining options will be to form a minority government or hold new elections. |
| The Social Democrats had initially ruled out another coalition with Merkel after poor results in the election on 24 September, but reconsidered after her talks with two other parties failed. | The Social Democrats had initially ruled out another coalition with Merkel after poor results in the election on 24 September, but reconsidered after her talks with two other parties failed. |