Germany's opposition parties were trying to agree on Sunday on joint positions for a series of reforms on taxes, the labour market and wage negotiations.
The leaders of the conservative Christian Democrats and their Bavarian Christian Social Union sister party have agreed in principal, according to documents obtained by Reuters, to change rules protecting workers from dismissal and relax rules on nation-wide wage deals.
"Our aim is to take the brakes off growth in Germany and strength economic growth," the CDU/CSU wrote in the paper, which was being discussed by party executives on Sunday.
The parties are also expected to agree on cutting the top tax bracket to 36 percent and the lowest rate to 12 percent.
Chancellor Gerhard Schroeder's government has ruled out any further cuts in the top bracket, which it trimmed to 45 percent from 48.5 percent in January - it will fall further to 42 percent in 2005.
The bottom tax was cut from 19.9 percent to 16 percent in January and will fall further to 15 percent in 2004.
The government has said it is looking into reforming taxation of capital income such as dividends and interest on savings rather than any change in income tax levels beyond what was already agreed.
The conservatives also want to suspend job protection rules for workers until they have been with their employer for four years. Also unemployed people older than 50 years who find new jobs would not be protected by the rules.
Companies should also be allowed to pay those who were unemployed for a long period of time wages below pay deals.
The conservatives want to cut worker contributions to unemployment benefits to five percent of wages from 6.5 percent.
The SPD and unions criticised the proposals. Some leaders of the CDU's left wing also spoke out against the plans.
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