Germany’s opposition Social Democrats yesterday cleared the way for weeks of hard bargaining on a coalition agreement with Chancellor Angela Merkel, setting out a string of minimum demands for a deal.

They include a statutory minimum wage, a financial transaction tax, new rules to give immigrants dual citizenship and an investment drive in transport and schools to boost economic growth. But there was no mention of tax increases for top earners, a central SPD election demand.

The minimum wage – strongly opposed by German employers – is seen as key to persuading party members to vote for any deal. “I cannot imagine any coalition agreement which does not include a statutory minimum wage of €8.50,” said Sigmar Gabriel, party chairman and the person most likely to be Ms Merkel’s vice-chancellor in any “grand coalition” of the SPD with Ms Merkel’s Christian Democratic Union and its sister party the Christian Social Union.