Merkel told closer EU ties are the price for coalition deal

ANGELA MERKEL faces demands for sweeping European Union reform and further integration as the price of a new coalition government in Germany, it emerged yesterday.

Martin Schulz, the leader of the rival Social Democrats (SPD), said in an interview with Der Spiegel magazine that he would insist on deeper integration as a condition of joining any new government under Mrs Merkel.

In particular, he said he would demand German support for proposals from France’s President Emmanuel Macron for a Brussels-based finance minister and single eurozone budget.

“Germany’s European politics must change,” Mr Schulz, a former president of the European Parliament, told the magazine. “A positive response to Emmanuel Macron will be a key demand in any negotiation with the SPD.”

He also called for common EU tax and welfare policies. “We need a fresh start in the EU,” he said.

The interview was published as Mr Schulz denied reports that his party was ready to enter negotiations on forming a new coalition yesterday and accused Mrs Merkel’s Christian Democrats (CDU) of leaking false information to the media.

Mr Schulz and Mrs Merkel met on Thursday night to discuss a possible new coalition, or SPD support for a minority government. Initial reports suggested the talks had gone well.

However, Mr Schulz insisted yesterday that his party had still not decided if it was prepared for further talks. He said the SPD would consider the matter over the weekend and announce its decision on Monday. Mrs Merkel is looking to the SPD for a lifeline after coalition talks with smaller parties collapsed. If negotiations fail, Germany may face new elections.