German Chancellor Olaf Scholz's three-way coalition government, consisting of the centre-left Social Democrats, the ecologist Greens and the business-friendly Free Democrats, is also split on the matter.
Behind closed doors, leaders of the three parties agreed to avoid a fight against the European Commission's compromise proposal and simply abstain in the vote when EU leaders will have their final say at a summit later this year, two people familiar with the decision said on condition of anonymity.
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