Merkel Party, Social Democrats Reach 'Breakthrough'

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German Chancellor Angela Merkel's conservatives reached a "breakthrough" deal Friday with the second biggest party, the Social Democrats, toward building a new "grand coalition" government, sources close to the negotiations said.

After more than 24 hours of talks, the party chiefs reached an in-principle agreement to start formal coalition negotiations that could lead to a new government in coming months, the sources told AFP.

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