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Merkel, Social Democrats Work Out Coalition Deal

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((Correct graf 2 to add "Christian Democratic Union party")


German lawmakers have arrived at a deal to form a coalition government, more than two months after the country's elections.

After marathon negotiations Tuesday, officials from Chancellor Angela Merkel's Christian Democratic Union party and the Social Democrats finalized an agreement to form a "grand coalition" that will establish a mandatory minimum wage and streamline some banking policies.

Details of the coalition plans are expected to be released later Wednesday.

But before the deal is finalized, it must be approved by a vote of the Social Democrats' 470,000 members. Results are expected by mid-December. If the deal with the Social Democrats falls through, she could go to the smaller Green party for a possible coalition, or call fresh elections.

Ms. Merkel won re-election in September's national vote, but her party lost its majority in parliament, forcing her to seek coalition rule.

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