Merkel allies talk tax rises in coalition overtures

Conservative allies of Germany's Angela Merkel said yesterday they might agree to raise taxes to help lure the defeated centre-left Social Democrats into a coalition that would keep the chancellor in power.

Their overtures came in media interviews ahead of a meeting of SPD leaders in Berlin tomorrow.

Both the SPD and the Greens, Merkel's potential coalition partners, have been playing hard to get by suggesting they do want to join her government.

Tax policy is one area where the Christian Democrats could give ground in a process that could keep Germans and Europe guessing for months. – (Reuters)