German coalition said to reach preliminary deal in talks - report

Author: Justin Low | Category: News

Some details on the coalition agreement are out on the wires via a negotiations source, awaiting official release

  • German coalition blueprint envisages no tax rises
  • Parties are committed to strengthening Eurozone in close partnership with France
  • Parties want to transform ESM bailout mechanism into European monetary fund under parliamentary control
  • Parties committed to developing common positions with France on all important questions of European and international politics
  • Parties are prepared to boost German contribution to EU budget
  • Parties support devoting specific budget funds for economic stabilisation, social convergence, and structural reform support in Eurozone
  • CDU and SPD want to gradually do away with solidarity tax
Some general details on the preliminary agreement between Merkel's CDU party and her sister party CSU, along with the SPD party.

EUR/USD is up to session highs of 1.2084 now, as the dollar is falling across the board.

Update (0841 GMT): Pop, goes the weasel as EUR/USD takes out the 1.2100 level. Now to highs of 1.2109!