BERLIN - Germany's conservatives and the center-left Social Democrats are on track to come to an agreement to form a coalition government around midday on Wednesday, people familiar with the negotiations told Reuters.

Conservative election winner Friedrich Merz and his team will convene again with the Social Democrats, or SPD, led by Lars Klingbeil, at 9:30 a.m. (0730 GMT) with the aim to overcome last remaining differences within a few hours, the sources said.

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Merz and Klingbeil have internally scheduled a press conference in the afternoon, contingent on reaching a final pact around midday, the sources added.

The prospective coalition partners have come under pressure to advance the talks by global turbulence in an escalating trade war sparked by US President Donald Trump's sweeping import tariffs, which could stoke inflation and have raised fears of a global recession.