German Chancellor and leader of the Christian Democratic Union (CDU) Angela Merkel talks with Sigmar Gabriel (R) leader of the Social Democratic Party (SPD) prior to a constitutional meeting of the Bundestag, Germany's lower house of parliament, in Berlin October 22, 2013. REUTERS/Pawel Kopczynski
BERLIN (Reuters) - Angela Merkel's conservatives and the Social Democrats (SPD) said they had agreed in coalition talks on Monday to push for a financial transaction tax but needed to consult further on the key issue of a European banking union.
The parties started negotiating policy compromises last week with the goal of having a new "grand coalition" government in place by Christmas.
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