German coalition talks enter decisive week

Germany’s Social Democrats pressed for a new tax on high-income earners today as negotiators opened a decisive week in their efforts to form a new government - talks that will focus on plugging a huge budget shortfall.

Chancellor-designate Angela Merkel’s conservatives and the Social Democrats, the party of outgoing Chancellor Gerhard Schroeder, hope to complete an agreement by the weekend on forming a so-called “grand coalition.” That would allow party conventions to approve any deal next week and parliament to elect Merkel as chancellor on November 22.