News Summary: German players agree on fiscal pact

Published June 21, 2012 8:28pm ET



A STEP FORWARD?: German Chancellor Angela Merkel’s governing coalition reached a deal Thursday with opposition parties on Thursday to ensure that the country ratifies Europe’s budget discipline pact, agreeing to push for a financial transaction tax and support investments to foster economic growth.

SOME RESISTANCE: Merkel’s center-right government blocked opposition calls to accept a so-called European debt redemption fund, however, sticking to its resistance to any form of pooling debt among eurozone countries.

THE OUTLOOK: The government still needs a deal with Germany’s 16 states, which are represented in the upper house.