German coalition partners seek agreement on healthcare reform

Jun 19, 2010, 10:55 GMT

Berlin - German Chancellor Angela Merkel's coalition partners indicated Saturday that they were edging towards an agreement on healthcare reform after months of bitter discord.

Members of Merkel's Christian Democrats (CDU) and the junior Free Democrat (FDP) coalition partner said they were making progress on plans to reduce a projected 11-billion-euro (13.5-billion-dollar) deficit in state-backed healthcare funds by 2011.

Healthcare reform is one of many issues which has prompted fractious squabbling within the centre-right government coalition.

A key sticking point has been a proposal by Health Minister Philip Roesler of the FDP to charge individuals a monthly healthcare premium of 30 euros, irrespective of income.

The proposal has been vehemently opposed by Merkel's Bavarian coalition partners, the Christian Social Union (CSU).

'We are optimistic that we will meet the savings target of 4 billion euros,' Roesler said early Saturday, after the first day of a healthcare summit.

Indeed, discussions had advanced so well that the parties agreed to call off a second scheduled day of negotiations.

However Roesler said they had reached no conclusive agreement yet, and did not indicate what shape such an arrangement might take.

Approval ratings for Merkel's government have plummeted as the parties have disagreed on ways to manage Germany's gaping state deficits and recover from the economic crisis.

Less than a year into Merkel's second term in office, her coalition have lost a key state election and with it their majority in the upper house of parliament.

After a series of high-profile resignations in Merkel's coalition, she also faces a nailbiting showdown on June 30, when political representatives choose the country's next president, a largely ceremonial yet portentous role.