Merkel’s CDU agrees to negotiate a grand coalition

(Reuters) The Conservative Party and the Social Democrats agreed to negotiate the “grand coalition”. These measures are taken to resolve the plistic problem and break the deadlock. Instability in one of the strongest EU countries can significantly affect the position of EUR on the currency market.

The creation of an alliance between the Social Democrats and the Conservative Party will significantly increase Merkel’s chances for another term in the government. This is reinforced by the fact that the Social Democrats express their desire to maintain stability and avoid new elections. Conservatives, in turn, will have to make some concessions. Conservative Party will have to agree to higher government spending and less severe tax cuts than in the case of an alliance with other partners. Merkel against the union of Conservative Party and “Greens”, due to inherent instability of this alliance.

We have the firm intention of having an effective government,” Daniel Guenther, conservative premier of the state of Schleswig Holstein, told reporters.
We firmly believe that this is not a minority government but that it is an alliance with a parliamentary majority. That is a grand coalition,” he said.

An alliance of the conservatives and SPD is the best option for Germany – better anyway than a coalition with the Free Democrats and Greens, new elections or a minority government,” Horst Seehofer, head of the Bavarian CSU, told Bild am Sonntag.

An Emnid poll also showed on Sunday that 52 percent of Germans backed a grand coalition.

The SPD premier of the state of Lower Saxony said he feared there was no way a decision would be reached this year.

Edited by Joshua Hayn

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