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		</div><p>A leader of one of the three parties holding talks on forming a new German government has said the discussions have “a long way to go” and will have to bridge significant policy differences.</p>
<p>The centre-left Social Democrats, the environmentalist Greens and the pro-business Free Democrats held their first round of talks Thursday on a possible coalition.</p>
<p>If they eventually succeed, the alliance would send outgoing chancellor Angela Merkel’s centre-right Union bloc into opposition after her 16 years at the helm of Europe’s biggest economy.</p>
<p>More talks are scheduled for Monday and Tuesday, but the process of putting together a new government can take weeks or months in Germany, and Mrs Merkel’s outgoing government will stay in office in the meantime.</p>
<p>Robert Habeck, one of the Greens’ two leaders, told Deutschlandfunk radio: “We have a long way to go, and it will get very arduous.</p>
<p>“And the public will see that there are some conflicts between the possible coalition partners.”</p>
<p>Mr Habeck identified finance as a particularly difficult issue in the talks — including how to fund investments in fighting climate change and approaches for dealing with the debt European countries have run up during the coronavirus pandemic.</p>
<p>In recent decades, the Free Democrats mostly allied with the Union, while the Greens traditionally lean left. A three-way alliance with the Social Democrats has been tried successfully in Germany at the state level, but not yet in a national government.</p>
<p>If the negotiations result in a coalition, Social Democrat Olaf Scholz — the vice chancellor in Mrs Merkel’s outgoing government — would become Germany’s new leader.</p>
<p>The Union is in turmoil after Armin Laschet, the governor of North Rhine-Westphalia state, led the two-party bloc to its worst-ever election result on September 26.</p>
<p>Speculation about who will take over the leadership of Mrs Merkel’s Christian Democratic Union, the dominant party, is in full swing after Mr Laschet indicated his willingness to step aside.</p>
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