Markets clear German hurdle; Italy's up next

London

THE revival of Germany's grand coalition should aid stability and keep the eurozone's plans for tighter fiscal union on track, investors and analysts said as months of political uncertainty ended on Sunday.

Germany's Social Democrats (SPD) voted decisively for another tie-up with Chancellor Angela Merkel's conservatives, clearing the way for a new government in Europe's largest economy more than five months since the country's inconclusive election.

Two thirds of the SPD membership voted "yes" to the deal, a party official said, meaning Mrs Merkel could be sworn in for a fourth term by mid-March in a repeat of the gra…