Thursday

30th Nov 2023

German parties agree 'Grand Coalition'

  • Bundestag: A deal has been reached, but needs approval (Photo: BriYYZ)

German Chancellor Angela Merkel in the early hours of Wednesday (27 November) reached a deal for a "Grand Coalition'" with the Social Democrats (SPD), after over two months of negotiations.

But the centre-left party still needs the approval of its 475,000 members, with the vote result expected on 14 December.

Read and decide

Join EUobserver today

Become an expert on Europe

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

... or subscribe as a group

Merkel and the leaders of the SPD and her Bavarian sister-party, CSU, will present the coalition deal later on Wednesday. The parties have divided the ministries among themselves, but the names of the new ministers will not be made public until after the SPD vote, prompting criticism from opposition parties.

SPD general secretary Andrea Nahles on her way out of the 17-hour long talks seemed confident the party members will endorse the deal.

"I am pretty sure with this result we will be closer to a Yes than a No," she said.

But some prominent Social Democrats, like the writer Gunter Grass are openly against another Grand Coalition, pointing to the fact that the parliamentary opposition will be too small for a proper democratic checks and balances system.

Others fear that the SPD will further erode its support base - as it did in the last Grand Coalition with Merkel between 2005 and 2009 - because it will fail to really steer policies more to the left.

But polls indicate that snap elections would be an even worse option for the SPD. They are currently polling at 23 percent, three points down compared to their 22 September elections result.

As for the coalition deal, the SPD got its way on the introduction of a minimum wage of €8.5 an hour. But it will only be introduced from 2015 and some jobs - like seasonal workers in agriculture or newspaper vendors - will continue to have lower wages.

European Parliament chief Martin Schulz, a member of the SPD negotiation team, gave somewhat good news to troubled eurozone countries.

A 2012 deal on allowing troubled banks to be directly recapitalised from the eurozone's bailout fund (ESM) - which seemed to be off Merkel's table in recent months - seems to be partially back.

"We have agreed in principle, that the cascade of liabilities when a bank is being wound down has to be stopped," Schulz said, in reference to the vicious circle between troubled banks and state coffers.

In order to break this circle, first there will be a "bail-in process" hitting the bank's creditors, then a state guarantee for the banks.

"Finally, if the bail-in process and the state guarantee are not working, then there can be direct recapitalisation from the ESM," Schulz said.

Germany unveils new Merkel government

Merkel will start her third term this week, with Schaeuble to stay on as finance minister and Social Democrat Steinmeier to return to the foreign minister post.

Interview

Why populism appeals to less brainy EU voters

People who voted for Brexit tended to be less clever, research shows, in findings that also shed light on the appeal of EU populists, such as Dutch politician Geert Wilders, who won elections this week.

Analysis

How Wilders' Dutch extremism goes way beyond Islamophobia

Without losing sight of his pervasive Islamophobia, it is essential to note Geert Wilders' far-right extremism extends to other issues that could drastically alter the nature of Dutch politics — and end its often constructive role in advancing EU policies.

Opinion

'Pay or okay?' — Facebook & Instagram vs the EU

Since last week, Mark Zuckerberg's Meta corporation is forcing its European users to either accept their intrusive privacy practices — or pay €156 per year to access Facebook and Instagram without tracking advertising.

Column

How centre-right conservatives capitulate to the far-right

Many conservatives in Europe seem to have forgotten the lesson of 1930s Germany. They sacrifice their principles on the altar of the polls and all-too-often try to overtake rightwing radicals on their own pet subjects like security or migration.

Latest News

  1. What are the big money debates at COP28 UN climate summit?
  2. 'Pay or okay?' — Facebook & Instagram vs the EU
  3. EU offers Turkey upgrade, as Sweden nears Nato entry
  4. Russia loses seat on board of chemical weapons watchdog
  5. Finland's closure of Russia border likely violates asylum law
  6. The EU's 'no added sugars' fruit-juice label sleight-of-hand
  7. EU belittles Russia's Lavrov on way to Skopje talks
  8. Member states stall on EU ban on forced-labour products

Stakeholders' Highlights

  1. Nordic Council of MinistersArtist Jessie Kleemann at Nordic pavilion during UN climate summit COP28
  2. Nordic Council of MinistersCOP28: Gathering Nordic and global experts to put food and health on the agenda
  3. Friedrich Naumann FoundationPoems of Liberty – Call for Submission “Human Rights in Inhume War”: 250€ honorary fee for selected poems
  4. World BankWorld Bank report: How to create a future where the rewards of technology benefit all levels of society?
  5. Georgia Ministry of Foreign AffairsThis autumn Europalia arts festival is all about GEORGIA!
  6. UNOPSFostering health system resilience in fragile and conflict-affected countries

Join EUobserver

Support quality EU news

Join us