Chancellor Angela Merkel’s Christian Democrats and the Free Democrats, her proposed coalition allies, were trying desperately on Monday to resolve a stand-off over the size of tax and spending cuts as they pledged to agree on a new government by the end of the week.

Ronald Pofalla, CDU general secretary, said negotiations to form a coalition continued “in an atmosphere of trust” in spite of “blunt formulations from both sides” after a weekend of fractious talks.