Merkel's likely coalition ally backs CO2 backloading- sources

Reuters News
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Posted: Nov 04, 2013 9:53 AM
Merkel's likely coalition ally backs CO2 backloading- sources

BERLIN (Reuters) - Germany's Social Democrats (SPD), in talks with Angela Merkel's conservatives to form a coalition government, will back European Union plans to prop up carbon prices by 'backloading' permits, party sources told Reuters.

The plan has been stalled for months partly because Berlin has withheld backing due to differences within Merkel's outgoing center-right government.

But since her September election, there were signs that a possible 'grand coalition' between her conservatives and the SPD may embrace backloading.

Coalition talks are in progress and likely to take several more weeks.

(Reporting by Markus Wacket; Writing by Sarah Marsh)