The political parties negotiating to form Germany's next coalition government, the christian democrat CDU/CSU and the liberal FDP, are nearing agreement.

CSU leader Horst Seehofer says the parties have settled their differences on health care, the last remaining stumbling block, paving the way for a coalition agreement to be signed soon. Talks will continue today to discuss the allocation of ministerial posts.

Chancellor Angela Merkel hopes to present her new government before 9 November, when a host of international dignitaries will converge on Germany's capital to mark the 20th anniversary of the fall of the Berlin Wall.