Germany's Merkel Officially Announces Coalition Talks With FDP, Greens

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Speaking Saturday in Dresden to her party's youth wing, Merkel said she'd hold talks with the pro-business FDP and left-leaning Greens and then present her Christian Democratic Union with a coalition proposal for approval. If the Greek debt is not sustainable as the International Monetary Fund claims, Lindner said at the time, then it has to be restructured - and this can not take place within the eurozone.Lindner avoided to say if his party would push to take over the Finance Ministry."For us a change in fiscal policy is more important than a new minister", said Lindner, who also expressed doubts about the prospects of a three-way alliance between CDU, FDP and the Greens, known as the "Jamaica coalition".

"I advise everyone to concentrate on what lies ahead", Merkel told young members of her Christian Democrats (CDU) in Dresden.

The CDU, along with its Bavarian sister party, the CSU, won the national election on September 24 with almost 33 percent of the vote. Lindner ruled out taking on new debt to manage the balancing act of cutting income taxes and increasing investment on digital infrastructure - two key demands of his party.

Deputy finance minister Jens Spahn, considered a possible successor to Merkel, drew sustained applause for a speech in which he blamed the government's migration policies for the election losses, and said conservative leaders had refused to acknowledge that fact or address the public's fears head on.

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