Merkel tries to build coalition after election
Germany’s Angela Merkel began the tough task of trying to build a government on Monday after securing a fourth term as chancellor, urging the centre-left Social Democrats (SPD) not to shut the door on a rerun of their “grand coalition”.
Damaged by her decision two years ago to allow more than one million migrants into Germany, Merkel’s conservative bloc secured 33 per cent of the vote, losing 8.5 points —its lowest level since 1949. Her coalition partners, the centre-left Social Democrats, also slumped and said they would go into the Opposition.
Voters flocked to the anti-immigration Alternative for Germany (AfD), the first far-right party to enter the German parliament in more than half a century. However, the AfD hardly had time to savour its thirdplace showing before it fell into internal bickering. Many Germans see the rise of the AfD as a similar rejection of the status quo as votes for Brexit and Donald Trump last year. But Germany’s political centre held up better than in Britain and the United States as more voters have benefited from globalisation and most shun the country’s extremist past.
Merkel’s party remained the biggest parliamentary bloc and Europe’s most powerful leader sought to keep her coalition options open on Monday, saying she would start talks with the Free Democrats (FDP) and the Greens as well as the SPD.
SPD leader Martin Schulz said earlier his party had no choice but to go into the Opposition “to defend democracy against those who question it and attack it,” after dropping to a post-war low of 20.5 per cent.
“I heard the SPD’s words, nevertheless we should remain in contact,” Merkel told a news conference. “I think all parties have a responsibility to ensure that there will be a stable government.”
Merkel made clear she still intended to serve a full four years as chancellor. But her next coalition could be her toughest yet with her only remaining potential partners, the business-friendly FDP and the pro-regulation Greens, at odds on issues from migrants to tax, the environment and Europe.
The FDP’s leader Christian Lindner set the stage for tricky talks, saying his party would not agree to a coalition with the conservatives and the Greens, dubbed “Jamaica” because the parties’ colours mirror the country’s flag, at any price.
He said changes were needed in Germany’s energy policy and its stance on euro zone fiscal policy. But he struck a more conciliatory tone on Europe, saying Germany had an interest in a strong France.
The Greens set out climate change, Europe and social justice as their priorities in any coalition talks.
The emergence of the Greens as powerbrokers in any coalition weighed on markets. Shares in carmaker BMW were down 0.2 per cent, while those in automotive supplier Continental dropped 0.4 per cent.
Merkel will start talks with the Free Democrats and the Greens as well as the SPD, to keep her coalition options open