German govt, states reach deal to boost childcare

BERLIN, Aug 29 (Reuters) Germany's government and its 16 states reached a deal on financing a large increase in childcare places, an issue that had threatened to split the coalition.

The deal was reached after Finance Minister Peer Steinbrueck agreed the federal government would cover a larger share of the costs involved in the plan to triple the number of nursery places by 2013.

''This is a successful and significant day for parents and young families in Germany,'' Family Minister Ursula von der Leyen told a news conference yesterday.

Germany has one of the lowest birth rates in Europe. The government hopes the new measures will encourage more women to have babies in a country where many still assume mothers will stay at home to take care of their children.

The battle over nursery places had been one of the fiercest since chancellor Angela Merkel's conservatives and the centre-left Social Democrats (SPD), traditionally fierce rivals, were forced into a partnership at the end of 2005.

Even after the coalition finally agreed to increase nursery places, some state premiers sought for months to block the move.

Steinbrueck said he planned to have a draft law on the increase in childcare places ready in September.

Reuters RKM VP0445