German Chancellor Angela Merkel’s conservatives and the center-left Social Democrats (SPD) on Sunday broke a deadlock over a higher basic pension for low-income workers, an impasse which had threatened the future of their governing coalition.

Senior coalition members, including Merkel and SPD Finance Minister Olaf Scholz, sealed the compromise deal during talks in the chancellery that lasted more than six hours.

The package also includes lower contributions to the public unemployment insurance scheme and the creation of an investment fund to support local high-tech start-ups.

“Germany will get a (higher) basic pension and this is a socio-political milestone,” said SPD interim leader Malu Dreyer, whose party had been pushing for a better deal for lower-income workers.

The coalition between Merkel’s CDU/CSU bloc and the SPD has struggled to stay afloat for much of the time since it was formed in March 2018 to end months of political limbo following an inconclusive national election.

The conservatives had agreed to an SPD proposal to introduce a higher basic pension for low-income workers who had been employed for at least 35 years. But some details were left open and talks on finalizing terms had stalled for months.

The impasse led some SPD members, worried by the party’s falling ratings, to threaten to quit the coalition.

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