Germany migrants: Interior minister Seehofer will not resign

EU leaders agreed at last week’s summit to build migrant detention centres

EU leaders agreed at last week’s summit to build migrant detention centres

In an earlier series of closed-door talks, Seehofer was also said to have muttered, twice, that he "can't work with this woman anymore", though the leaked complaint was later denied by his CSU party.

German Chancellor Angela Markel on Monday balked on her signature immigration policies in a bid to stay in power, agreeing to create border camps for migrants and enforce tighter border control.

German Chancellor and chairwoman of the German Christian Democratic Union (CDU), Angela Merkel, announces new deal with Interior Minister and chairman of the German Christian Social Union (CDU), Horst Seehofer, in Berlin on Monday.

Mr Seehofer proposed turning away immigrants from Germany's borders who had registered in other countries if Ms Merkel could not secure agreement with European partners on tougher measures to deal with the issue.

Merkel, however, rejected a key provision: turning back at the border all migrants previously registered in another European Union country as a unilateral act that would come at the expense of other member states.

As Merkel won key concessions from European Union partners on toughening migration rules, Seehofer and the CSU faced increasing pressure from other parties to avert a historic coalition breakdown.

CSU leaders are divided over how to face down a challenge from the anti-immigration Alternative for Germany (AfD) in October's regional election.

However, the row with the CSU appears to have galvanised support for Merkel within the CDU ranks, even though many members prefer Seehofer's policies.

The border deal, hailed by the German chancellor as a "good compromise", foresees setting up so-called transit centres on the southern border, where asylum seekers who have already been registered in other European Union countries will be held until they can be sent back to those countries.

To politically survive, Merkel could attempt a minority government, seek a new coalition partner in the ecologist Greens or pro-business Free Democrats, or orchestrate a no-confidence vote in parliament that could trigger new elections. But if he had pulled the CSU out of the coalition, the government would have collapsed-and Merkel's career likely would have been over.

"We are open to compromise", Bavarian State Prime Minister Horst Söder told an event in Bavaria.

Seehofer and Italian counterpart Matteo Salvini spoke by phone and agreed to meet for bilateral talks before a summit of interior ministers in Innsbruck on July 11.

Then reports emerged from the CSU that Mr Seehofer had offered to step down both as party leader and interior minister.

It was the latest aftershock from Merkel's 2015 decision to open Germany's borders to more than a million refugees from war in the Middle East and Africa.

Both European and United States markets had mixed macro data outcome on Monday and it had little effect on the pair as investors were focused on German political proceedings.

The most important factor for her survival is probably how long her own CDU lawmakers stand by her, and for now they are.

Following the news of Seehofer's resignation, the CDU has immediately stressed its support for Merkel's European solution in asylum policy.

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