The conservative bloc comprising Chancellor Angela Merkel's Christian Democratic Union (CDU) and its Bavarian sister party, the Christian Social Union (CSU), had for years longed for a governing partnership with the business-friendly Free Democrats (FDP). Their wish was granted when voters at the September 27 general elections gave the parties the required mandate for the alliance.

However, the difficult negotiations that preceded the signing of the coalition agreement in October didn't seem to augur well for the partnership. And signs of discord have continued to afflict the coalition into 2010.

"The image of the coalition can be better," the head of the FDP's parliamentary group, Brigit Homburger, told the dpa news agency on New Year's Day.

Meanwhile, the FDP secretary general, Christian Lindner, made it clear who his party held responsible for flaws in the coalition's image. He told the Tagesspiegel newspaper on Saturday that the CDU/CSU lacked orientation where questions of core values were concerned.

In turn, the chairman of the employees' group in the CDU/CSU parliamentary contingent, Peter Weiss, told the Frankfurter Rundschau newspaper that the FDP was finding it hard to "say goodbye to party congress rhetoric and engage in the hard realities of government business."

Key areas of discord

At the core of the dispute are the nature and extent of tax relief for citizens. The CDU is proposing that tax cuts to the tune of 24 billion euros ($34 billion) be implemented starting 2011 only on condition that they can be financed.

The FDP's Homburger has warned that these decisions must be implemented without regard to tax estimates.

"We will make clear that we want to keep the promises we made before the election," she said.

Tensions also surfaced over issues like opening up European banking information to facilitate US anti-terrorism laws.

In November, the German Interior Ministry, headed by Thomas de Maziere of the CDU, opted not to block an EU deal giving US authorities access to banking transfer information from the financial-service provider SWIFT, which handles millions of transactions around the world. The FDP is opposed the SWIFT agreement.

Controversial appointment

The FDP also sought to block controversial CDU member Erika Steinbach from serving on the board of a proposed center for the documentation of the fate of German expellees from Poland and Czechoslovakia in the aftermath of World War II.

FDP leader and Foreign Minister Guido Westerwelle argued that the move would disrupt the process of improving bilateral relations with Poland.

Many in Poland view Steinbach's group, the Federation of Expellees, as attempting to claim victimhood for a group that was on the wrong side of the war, and trying to stake a German claim to lands which are now Polish.

Bruederle calls for discipline

Federal Economics Minister Rainer Bruederle of the FDP has also criticized the CDU and CSU, saying they should demonstrate more "coalition discipline."

In an interview to be published in the Monday edition of the Tagesspiegel newspaper, Bruederle says there are voices that are questioning what's already been agreed upon.

It would be better for the audience if the "same tune was sung," he said.

rb/dpa/AFP

Editor: Toma Tasovac