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German Chancellor Angela Merkel's government and the country's 16 states have been unable to reach a compromise regarding planned reductions to solar feed-in-tariff (FIT) rates. Arbitration talks will resume June 17, according to a statement from Bundesrat, the parliament's upper house, provided to Bloomberg.

The discussions were initiated last month, when several federal states blockaded against a bill that would have delivered significant reductions to Germany's solar FIT. PV manufacturers and investors have protested the FIT cuts as destructive to the industry.

According to an anonymous lawmaker quoted by Bloomberg, the states' and federal government's positions on the FIT cuts are so far apart that it is possible no agreement will be reached - and FIT changes could be dropped altogether.

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