German coalition talks face crisis over minimum wage

(Vatican Radio) Germany's opposition Social Democrats say they will not participate in a 'grand coalition' government with Chancellor Angela Merkel unless she agrees on a national minimum wage.

Listen to Stefan Bos' report:

Though Chancellor Merkel's conservatives defeated her center-left rivals in the September 22 election, they aren't celebrating yet. On Sunday it became clear that they must overcome a high hurdle to form a new government. The influential Social Democratic Party, or SPD, made clear it would only form a government with Merkel's Christian Democratic Union if they agree on a minimum wage for Germany.

SPD deputy leader Andrea Nahles told the 'Bild am Sonntag' newspaper that her party will not join a coalition without an agreement on a national minimum wage of 8.50 euro per hour. She warned that she expects "more concrete commitments from Merkel at an upcoming meeting on Monday, not just on the minimum wage."

Merkel is against a single minimum wage for all, citing economic concerns, and has also come out against tax hikes. Yet she needs either the SPD or the Greens as a coalition partner to have a workable majority in parliament. With neither party showing much desire to join her, there are worries among Germany's European partners. They fear long negotiations it could delay decisions in what is the European Union's largest economy on measures to fight the euro zone crisis - such as a plan for banking union.