The coalition talks continue in Germany this week-end 18 Nov

After Thursday's self-imposed deadline passed without any deal, and almost 2 months after the election results, Merkel's CDU continue to try and thrash out a compromise with the FDP and Greens.

The three parties remain divided on climate policy and immigration and today will recommence talks on those issues as well as transport and agriculture.

Yesterday Volker Kauder, the parliamentary of the CDU, said they were prepared to compromise further on reducing emissions from coal-fired power stations to assuage Green concerns.

"I feel readiness by all sides and everyone has to make concessions."I believe that the exploratory talks must end this weekend."

Failure to agree could lead to new elections, something the mainstream parties fear could lead to the far-right Alternative for Germany (AfD) making further gains after surging into parliament in September.

Merkel could still approach her previous coalition partner, the Social Democrats (SPD), but they have said they want to stay in opposition after suffering their worst election result since 1933 in the Sept. 24 poll. A third option, a government without a parliamentary majority, would be unprecedented in Germany's post-war history.

Reuters has more on the story and developments here

Let's see what transpires but the ongoing uncertainty hasn't helped the euro too much of late understandably.

I have to head out now. Long trip ahead to football. Have a good week-end everyone and thanks as always for your excellent support and contributions

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