Merkel makes concessions
The German Chancellor announces a coalition with the PSD which still must be ratified by the socialists who control finances, labour and foreign affairs
“It has been a long road, but it was worth it,” said Angela Merkel, after the negotiations dragged on for a final 24 hours. “We have made improvements in everything” summed up her future coalition partner, Martin Schulz, who still needs to get the green light from his party to make it official. It has taken four months or so has taken Merkel to form a new grand coalition between the Christian Democratic Union (CDU), the Social Union of Bavaria (CSU) and the Social Democratic Party (SPD). If party rank and file ratify the agreement, Merkel will begin her fourth term before Easter. Schulz will be the new Foreign Minister and renounce his personal commitment to support the refoundation of Europe proposed by Emmanuel Macron. The SDP will also control Finance with Olaf Scholz, a previous labour minister in Merkel’s first term and now charged with ending Schäuble’s austerity programme. Other SDP ministries are Labour, Environment, Justice and the Family.
Merkel has given in on key areas of her programme, especially in immigration, although without capitulating entirely. However, even her own minsters will have changes made such as accepting an egalitarian health care reform and the elimination of the famous temporary employment contracts.
Opposition to a coalition within the SDP is very strong, especially among younger militants and the electorate still chooses to blame the party for supporting Schäuble’s economic policies for so long. With the worst result in its electoral history last year of only 20%, if elections were to be held now, polls predict the SDP would win only 17%.