Power struggles at home will affect Merkel’s EU impact

THE battle to agree to common goals for the future government of Germany is well underway following the division of the ministries between the two coalition partners.

The areas for disagreement have been reduced with the incoming chancellor, Angela Merkel, agreeing to ditch some of the more controversial aims of her party including reducing trade union powers in wage agreements.

The market that responded positively to the news that she is to become Germany’s first woman chancellor, fell back yesterday as they realised that her four-seat majority hampers her scope for reforms.