Thursday

28th Mar 2024

New German government to form 'by Christmas'

  • Christmas market: SPD chief Gabriel says no ministerial posts have been discussed yet (Photo: tunnelarmr)

German Social-Democrats (SPD) have agreed to coalition talks with Angela Merkel and aim to form a new government by Christmas, further postponing any decisions on eurozone governance.

An SPD party convention in Berlin on Sunday (20 October) decided by 229 votes in favour, 31 against and two abstentions to start coalition talks with Merkel's Christian Democrats.

Read and decide

Join EUobserver today

Get the EU news that really matters

Instant access to all articles — and 20 years of archives. 14-day free trial.

... or subscribe as a group

"We will negotiate in a tough manner, with the aim of forming a government before Christmas," SPD party chief Sigmar Gabriel said in a press conference after the vote.

The SPD set out 10 demands, including the imposition of a new financial transactions tax, which not all EU countries have signed up to and which is currently bogged down in legal challenges, and restrictions on EU weapons exports, including for the German weapons industry.

One demand which Merkel's allies have already signalled willingness to compromise on is a country-wide minimum wage at €8.5 euro per working hour.

More gender equality, measures against poverty and more investments in education are also on the wish list.

"We want to make the EU more capable of acting and to strengthen its structures through more democracy," the SPD said, adding that they want all EU countries to have "sustainable growth strategies" linked to their fiscal policies.

With coalition talks set to kick off just one day before an EU summit in Brussels on Thursday and Friday, EU officials are not expecting any big decisions on the eurozone governance at this meeting.

Der Spiegel reports on Monday that Merkel is again pushing for binding contracts between the EU commission and member states in return for access to a special eurozone budget.

The idea is not new and is hard to put in practice because it would require a change of the EU treaty which can only be done if all 28 EU countries and the European Parliament agree.

"Merkel is coming back to this idea after having been out of it for a while. She will realise there is great reluctance among other countries to change the treaty - this is a discussion that will be picked up again at the December summit," an EU source told this website.

Meanwhile, EU commission chief Jose Manuel Barroso is travelling to Berlin on Monday to meet Merkel on other EU files which are still blocked by Germany - setting up a eurozone-wide fund for failing banks and guaranteeing deposits across Europe.

But with the coalition talks barely under way and with the German finance ministry the most highly-prized post among the two parties, no movement is foreseen on that front either until a German government is formed.

Ukraine slams grain trade restrictions at EU summit

Restrictions on Ukrainian agricultural exports to the EU could translate into military losses in their bid to stop Russia's war, Ukrainian president Volodymyr Zelensky warned EU leaders during their summit in Brussels on Thursday.

Opinion

Why UK-EU defence and security deal may be difficult

Rather than assuming a pro-European Labour government in London will automatically open doors in Brussels, the Labour party needs to consider what it may be able to offer to incentivise EU leaders to factor the UK into their defence thinking.

Latest News

  1. 'Swiftly dial back' interest rates, ECB told
  2. Moscow's terror attack, security and Gaza
  3. Why UK-EU defence and security deal may be difficult
  4. EU unveils plan to create a European cross-border degree
  5. How migrants risk becoming drug addicts along Balkan route
  6. 2024: A Space Odyssey — why the galaxy needs regulating
  7. Syrian mayor in Germany speaks out against AfD
  8. Asian workers pay price for EU ship recycling

Stakeholders' Highlights

  1. Nordic Council of MinistersJoin the Nordic Food Systems Takeover at COP28
  2. Nordic Council of MinistersHow women and men are affected differently by climate policy
  3. Nordic Council of MinistersArtist Jessie Kleemann at Nordic pavilion during UN climate summit COP28
  4. Nordic Council of MinistersCOP28: Gathering Nordic and global experts to put food and health on the agenda
  5. Friedrich Naumann FoundationPoems of Liberty – Call for Submission “Human Rights in Inhume War”: 250€ honorary fee for selected poems
  6. World BankWorld Bank report: How to create a future where the rewards of technology benefit all levels of society?

Join EUobserver

EU news that matters

Join us