German FDP demands policy change as price for coalition with Merkel

BERLIN – The leader of Germany's liberal Free Democrats (FDP) said his party will only join an alliance with Chancellor Angela Merkel if there is a change in the direction of government policy.

Merkel's conservative bloc remained the largest parliamentary bloc after Sunday's national election but bled support to the far-right. With coalition talks set to get underway, her only realistic option now is a tie-up with the FDP and the environmentalist Greens.

But the FDP and the Greens disagree on issues from energy to tax, Europe and migration, complicating the path to any deal on forming a so-called 'Jamaica' coalition - a reference to the parties' respective colours: black, yellow and green.

Further complicating matters, Merkel's conservative bloc compromises two parties: her Christian Democrats (CDU) and their Bavarian allies, the Christian Social Union (CDU), who are shaping up as an obstacle to a coalition deal.