Merkel says her coalition 'working very well' despite spying row

Closed-circuit televisions (CCTVs) are pictured at the Chancellery in Berlin, Germany, May 4, 2015. German Chancellor Angela Merkel defended Germany's BND intelligence agency against accusations that it violated laws by helping the U.S. spy on officials and firms in Europe and said her office would cooperate fully with a parliamentary investigation. REUTERS/Hannibal Hanschke

BERLIN (Reuters) - Chancellor Angela Merkel tried to reassure Germans on Tuesday that the government was working smoothly despite a spat between her conservatives and their Social Democrat (SPD) coalition partners over the activities of the BND intelligence agency.

The political bickering erupted following allegations that the BND helped the U.S. National Security Agency (NSA) to spy on European companies and officials, putting strain on Merkel's right-left coalition, which has run Europe's largest economy relatively harmoniously for the past 18 months.