Germany’s Bavarian conservatives are pressing for corporate tax cuts and abolition of a tax imposed after reunification to help poorer eastern states, which could complicate talks with the Social Democrats (SPD) on forming a new government, according to Reuters.
Chancellor Angela Merkel hopes to secure a fourth term in office by persuading the center-left SPD to extend the “grand coalition” that ruled Germany for the past four years, even though both blocs suffered big losses in September’s election.
Exploratory talks are scheduled from Jan. 7 to January 12.
The SPD, which initially wanted to stay in opposition, has agreed to explore the possibility in the interest of political stability after Merkel’s coalition talks with two smaller parties collapsed in November.
But SPD officials have made no promises.
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