German Greens drop car and coal policies in coalition talks with Merkel

Decision to drop key issues welcomed by other negotiating parties but criticised by some supporters

Germany's Green party has agreed to compromise on key environmental issues in talks between parties hoping to form a coalition government by the end of the year.

The party's decision to back down on its insistence over a ban on combustion engines and the closing down of coal-fired power plants was welcomed by the other negotiating parties as paving the way for official negotiations to begin.