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Germany's Free Democrats forfeit demand for large tax relief

Germany's Free Democratic Party (FDP) leader, Christian Lindner, gives a statement as he arrives at the Reichstag building for exploratory talks about forming a new coalition government in Berlin, Germany, November 7, 2017. REUTERS/Hannibal Hanschke

BERLIN (Reuters) - Germany’s pro-business Free Democrats (FDP) will have to accept smaller income tax cuts than they had previously wanted, their leader said on Tuesday, signaling compromise in discussions with two other parties on forming a new government.

FDP leader Christian Lindner said his party would not be able to push for tax relief totaling 30-40 billion euros ($35-46 billion) and will instead seek to get the Greens and the conservatives to accept an abolition of the “solidarity tax” introduced after reunification in 1990 to support poorer eastern states.

Reporting by Andreas Rinke; Writing by Joseph Nasr; Editing by Michael Nienaber