German coalition faces difficult path

Chancellor Angela Merkel’s centre-right Christian Democratic Union bloc and the Social Democrats have agreed a preliminary deal.

Dr Matthew Partridge
By
published
in Features

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Coalition talks have been tough
(Image credit: 2018 Getty Images)

Finally a breakthrough in Germany's coalition talks, says Philip Oltermann in The Guardian. Chancellor Angela Merkel's centre-right Christian Democratic Union bloc and the Social Democrats have agreed a preliminary deal. The two parties are set to embark on formal coalition negotiations after agreeing compromises on questions including European integration, healthcare and migration quotas.

"Still, the path ahead promises to be difficult, particularly for SPD leader Martin Schulz," says German weekly Der Spiegel. He needs unequivocal backing from his party's leadership committee to enter formal coalition talks. But some SPD bigwigs remain sceptical, including Kevin Khnert, head of the SPD's youth wing.

The party is "extremely wary of yet again playing second fiddle in a Merkel-led government" given the collapse in their support that ensued after the last CDU-SPD grand coalition. If the SPD's membership does reject talks, Schulz "would likely be forced to step down".

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The revival of the grand coalition may end up helping the far-right populist Alternative for Germany party, notes Darrell Delamaide in Handelsblatt,a German business newspaper. "As the biggest party in parliament that is not in the government, the Alternative for Germany would have a number of perks including more speaking time on the floor and chairmanship of the key budget committee."

Overall, this new status "may enable it to further extend its support", especially "if a new coalition just sits on its hands and creates the impression it hasn't learned anything".

Dr Matthew Partridge
Dr Matthew Partridge
Shares editor, MoneyWeek

Matthew graduated from the University of Durham in 2004; he then gained an MSc, followed by a PhD at the London School of Economics.

He has previously written for a wide range of publications, including the Guardian and the Economist, and also helped to run a newsletter on terrorism. He has spent time at Lehman Brothers, Citigroup and the consultancy Lombard Street Research.

Matthew is the author of Superinvestors: Lessons from the greatest investors in history, published by Harriman House, which has been translated into several languages. His second book, Investing Explained: The Accessible Guide to Building an Investment Portfolio, is published by Kogan Page.

As senior writer, he writes the shares and politics & economics pages, as well as weekly Blowing It and Great Frauds in History columns He also writes a fortnightly reviews page and trading tips, as well as regular cover stories and multi-page investment focus features.

Follow Matthew on Twitter: @DrMatthewPartri

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