this is business briefing. i'm sally bundock. —— samantha. germany's social democrats vote to open talks with angela merkel‘s conservatives to form another grand coalition. we look at the economic situation they are facing. the former treasury minister and remain supporter, lord jim o'neill, tells the bbc that global growth is boosting britain's economy far more than expected. and on the markets: this is how the dow closed on friday. after months of deadlock, germany has moved a step closer to forming a new government. the centre—left social democratic party has voted to enter into new coalition talks with chancellor merkel‘s conservative bloc. a partnership between the two could signal a step change in economy policy.

over the past two years, germany has recorded a steady increase in its rate of growth. rising incomes have helped to boost tax revenue, but merkel‘s government has come under fire for its refusal to spend this additional revenue. at present, germany is the only country in the group of seven major economies, which collects more tax than it spends. in fact, germany has the largest budget surplus of any country in the world. the social democrats want all of this to change. in addition to a cut in taxes for low—income earners, the sdp has asked for an increase in spending on schools, pensions and housing. despite this, mrs merkel sounded hopeful when she announced the new talks. that