German opposition party side with Hollande on fiscal measures

Germany's centre-left opposition told Angela Merkel it would only support her fiscal pact if it was accompanied by measures to boost growth and jobs, siding with France's new Socialist President Francois Hollande hours ahead of his visit to Berlin.

Angela Merkel is set to meet Francois Hollande in Berlin later. Credit: REUTERS/Tobias Schwarz

Markets and European politicians will be closely watching the dialogue between Germany's conservative chancellor and the new French leader for signs that they can overcome their differences on Merkel's drive for austerity.