Germany's Free Democrats endorse government coalition deal (Roundup)

Oct 25, 2009, 16:00 GMT

   Berlin - The pro-business Free Democrats (FDP) on Sunday endorsed a coalition deal designed to let them govern Germany in a conservative government led by Chancellor Angela Merkel for the next four years.

An overwhelming majority of the more than 600 delegates at a special party congress approved the 124-page programme worked out with Merkel's Christian Democrats after three weeks of negotiations.

The FDP would have five ministers in the new government, including the post of foreign minister for its leader, Guido Westerwelle, who is also set to become deputy chancellor.

'Germany will in future be governed from the centre, from a coalition of the centre,' Westerwelle told delegates, dismissing opposition claims that ordinary citizens would be worse off under the new government.

The agreement, which came almost a month after Merkel's conservatives and the FDP won a parliamentary majority in a general election, paves the way for the centre-right government to take office on Wednesday.

Legislators from all three coalition partners approved the deal on Saturday. The Christian Democrats and the CSU are set to hold party congresses on Monday so it can be formally signed Monday evening.

The new coalition enjoys a 20-seat majority in the 622-member lower house, or Bundestag. Parliament is set to re-elect Merkel on Wednesday, with the cabinet to be sworn in the same day.

Merkel said her new government would concentrate on spurring growth in Europe's biggest economy, which has recently shown signs of emerging from its worst recession in 60 years.

Key points are 24 billion euros (36 billion dollars) in tax cuts, some which will come into force next year, increased family benefits and an overhaul of health care funding.

There was also agreement to prolong the life of nuclear reactors due to be phased out by 2020, a move which overturns a policy adhered to by Merkel's previous coalition with the left-of-centre Social Democrats.

On foreign policy issues, the coalition partners agreed to end German involvement in the UN naval mission of Lebanon and support EU negotiations on membership for Turkey, without committing themselves to a definite outcome.

Meanwhile, incoming Finance Minister Wolfgang Schaeuble warned that Germany would not be able to produce a balanced budget during the four years the new government is in office.

Schaeuble told the newspaper Welt am Sonntag that the government first had to deal with 'the enormous amount of debt' amassed for measures taken to contain the economic and financial crisis.

The minister said it would not be possible to introduce belt- tightening measures or begin repaying the debt until the crisis had passed.

'No one can say with certainty when this will be,' he said.