Political leaders in Germany have reached a breakthrough in talks to form a new coalition government, following months of uncertainty after elections in September failed to produce an overall majority for any party.Germany’s Chancellor Angela Merkel entered into talks with a rival party earlier this week in a last-ditch effort to form a government. This after a political deadlock in the euro zone’s largest economy that had shed some doubt on the future of Merkel’s leadership.After 24 hours of grueling discussions — that reportedly ran all through the night — a new blueprint for more formal coalition talks was presented to party members on Friday morning. At best, a government will still not be sworn in by late March or early April, according to some experts. Nonetheless, the euro surged higher Friday morning on the news and German bond yields hit fresh five-month highs.
Source: German lawmakers reach breakthrough in talks to form a new government
Euro at Three Year High on Possible Coalition Deal
EUR/USD – Euro Soars to 3-Year High as German Coalition Talks Show Progress
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Craig Erlam
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