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Monday, 20 November 2017 - 12:26
German coalition talks fail
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The protracted struggle to form a new German government under the leadership of Angela Merkel has collapsed, plunging Europe’s biggest economy into political uncertainty and raising the prospect of new elections.
 
The euro fell as much as 0.6 percent against the dollar in Asian trading to $1.1712.
 
After another tense day of negotiations in Berlin, the centrist Free Democrats announced shortly before midnight that they were pulling out of the talks with Merkel’s conservative bloc and the left-wing Green party.
 
Christian Lindner, the FDP leader, said the parties had been unable to bridge their differences on policy but had also failed to develop “a basis for trust and a shared idea”. He added: “It is better not to govern than to govern badly.”
 
Merkel and the other party leaders insisted, however, that a coalition deal would have been possible, suggesting that the FDP was largely to blame for the failure of the talks.
 
“We tried everything to find a solution,” the chancellor said in the early hours of today. “We think we were on a path where we could have reached an agreement.”
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