Merkel’s conservatives and Social Democrats pledge to work closely with France
Berlin — On Friday, German Chancellor Angela Merkel’s conservatives and the centre-left Social Democrats (SPD) pledged to work closely with France to strengthen the eurozone, saying they were open to creating an "investment budget" for the currency bloc. In a 28-page policy document agreed after all-night talks between the parties, they also backed the idea of turning the European stability mechanism (ESM) bailout initiative into a full-blown European monetary fund that would be placed under parliamentary control and anchored in EU law. The document is expected to form the basis for formal coalition talks between the parties that could begin later this month if grassroots party members give a green light. Merkel’s first attempt to form what Germans refer to as a "Jamaica" coalition with the Greens and Free Democrats (FDP) collapsed in November. The section on Europe, entitled, A New Awakening for Europe, is the most concrete response so far from Berlin to French President Emmanuel M...
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