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Merkel, under fire from left, right, backs German immigration plan
09 July 2018, 03:33 | Darnell Patrick
Image Migrant numbers have fallen but German politicians know the issue continues to win votes
In response, Austrian Chancellor Kurz said on Tuesday that he would not accept a plan that is disadvantageous to his country, indicating he will seek stricter border controls if Germany implements the agreement.
Germany's interior minister said on Thursday he was confident that his conservative bloc's centre-left coalition partner would back a plan aimed at defusing a dispute over asylum policy that has threatened to bring down the government.
Reuters reported that the U.S. ambassador to Germany, Richard Grenell, has repeatedly met with executives of German carmakers and major suppliers to discuss the issue.
Chancellor Angela Merkel said she will make "every effort" to avoid a trade war with the United States and repeated her pledge to increase defence spending, addressing two major points of contention in the US-German relationship.
German Federal Interior Minister Horst Seehofer said after the meeting that there would be no transit centers, as agreed by the Merkel-led Christian Democratic Union (CDU) and Seehofer-led Christian Social Union (CSU) on Monday.
Germany's Social Democrats (SPD) has reached an agreement on migration with the other parties in Chancellor Angela Merkel's coalition, its head said on Thursday, stressing that there would be no transit centres of any kind.
Seehofer predicted that talks with Greece and Italy about these so-called secondary movements of people would be "extremely complex and complicated".
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"Stocks are higher as improved political relations in Germany and constructive trade comments from China have lifted investor sentiment", David Madden, market analyst at CMC Markets UK, said, adding that the positive mood might not last. "We are fighting for a European solution".
Kurz - whose country's border with Italy includes the Brenner pass, an important north-south transport link - was more explicit about what might happen if a deal with Italy was not reached.
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