Merkel in final talks to form new govt

German Chancellor Angela Merkel’s conservatives will sit down with their historic center-left rivals Sunday (Monday in Manila) to try and seal a deal to form a government more than four months after legislative elections.

They have set a deadline of Sunday evening, with the option of extending into Monday or Tuesday.

On the agenda are detailed questions about how a repeat of the “grand coalition” or “GroKo” shape healthcare, labor law, pensions and reform of the European Union and euro single currency.

Both sides are reluctant to compromise too much and risk losing support, but are equally fearful of going back to voters in repeat elections that could see a further rise of the far-right.

But neither can they afford to dig in their heels, as a poll for - cent of people do not understand “why forming a government is taking so long.”

“I hope we can manage it,” Merkel said Friday, warning however that there were still “a whole list of very serious points of disagreement.”

At stake for Merkel -- still rated a “good” or “very good” - cent of respondents to the same poll -- is whether she leads a stable coalition into her fourth term, or risks a fragile minority government or new elections.

The SPD is a reluctant partner, having initially vowed to go into opposition after plunging to a percent in September.

Social Democrats agreed to talks only after Merkel’s soundings with two smaller parties, the ecologist Greens and the pro-business Free Democrats, fell through.

Challenged by rebels within his own ranks, SPD leader Martin Schulz has sought political cover Kevin Kuehnert, leader of the SPD youth wing, has become a standard bearer for opponents of a new deal with Merkel.

“This kind of politics was point drop ( for CDU and SPD combined) last year, and I suspect things will continue that way” if the coalition materializes, he has said.

Others warn the SPD is too weak to face voters again so some polls -- just a few points ahead of the far- right Alternative for Germany ( AFD).

Merkel too faces grumbling among her troops, with more conservative voices accusing her of marching her Christian Democratic Union (CDU) too far into the political center, giving up terrain to the AFD.