German Chancellor Angela Merkel gives a press conference at the headquarters of the Christian Democratic Union (CDU) party in Berlin on September 25, 2017, one day after general elections.
/ AFP / Odd ANDERSEN
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Germany's Greens and liberal Free Democrats (FDP) gave remarkably similar messages on European reform Monday as they began exploring a coalition alliance with Chancellor Angela Merkel's humbled conservatives. After her conservative bloc hemorrhaged support to the far-right in Sunday's election, Merkel has little choice but to try to work out a three-way coalition with the Greens and FDP – an tie-up untested at national level and widely seen as risky.If their party programs are taken at face value, the Greens want to press ahead with deeper European integration and the FDP wants to hold it back – a conflict that could frustrate coalition talks with Merkel, who wants a "stronger Europe". The Greens and FDP are from opposing ends of the political spectrum and must navigate differences on tax policy and immigration, as well as Europe, before they team up.Investors remained sanguine about the prospects for European reform under a three-way coalition of conservatives, FDP and Greens – known as a "Jamaica" alliance after their respective party colors: black, yellow and green.
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