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Against the clock, German parties haggle over immigration, euro budget

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Angela Merkel, leader of the Christian Democratic Union (CDU), arrives at the German Parliamentary Society for exploratory talks about forming a new coalition government in Berlin, Germany, November 15, 2017. REUTERS/Hannibal Hanschke

BERLIN (Reuters) – With just one day left to conclude exploratory talks on forming a new coalition government, German parties were still far apart on Wednesday on the hot issue of immigration and the future governance of the euro zone.

Merkel, 63, wants the exploratory talks to end on Thursday, when German media expect her to press all sides to strike a compromise before moving to formal negotiations that could lead to her securing a fourth term as Chancellor.

Merkel is hoping to put together an unlikely alliance of her conservatives, the pro-business Free Democrats (FDP) and the ecologist Greens – a combination untested at national level but a deal which could head off fresh elections.

The parties are struggling to reach agreement on the touchy issue of immigration, with the Greens firmly opposed to a conservative plan to cap at 200,000 per year the number of migrants Germany will accept for humanitarian reasons.

The parties are also at odds over the number of foreigners who qualify to join relatives granted asylum in Germany.

Differences over whether Germany should back a French proposal to create a joint euro zone budget also highlight the difficulties Merkel faces in trying to forge the awkward alliance.

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But the coalition negotiations are complicated by the dynamics within the conservative bloc, which comprises Merkel’s Christian Democratic Union (CDU) and their Bavarian sister party, the Christian Social Union (CSU).

The CSU, worried about losing support in a state election next year, is uncompromising on immigration – a risk for the three-way ‘Jamaica’ coalition, so-called because the parties’ colours match those of the Caribbean country’s flag.

CSU Secretary General Andreas Scheuer said his party was ready to compromise, but added: “It is becoming ever more clear that Jamaica is not a pleasure trip.”

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