Friday, 12 January 2018
Germany: More than 3 months without a government and coalition is not a certainty
An image that speaks volumes: the facial expression of Angela Merkel tells things as they are and a set of conditions that will not go down well with German voters.
Despite the fact that Britain's withdrawal will mean higher German contributions to the EU budget, coalition talks are heading in the direction of making a statement explicitly saying that German contributions will be increased as one of the requirements that must be met for a deal between CSU and SPD.
As part of the deal, CDU will be forced to speed up the phasing out of the country's coal industry. Something that will go against both businesses and workers and it will lead to a higher dependency on other energy sources including oil and will lead to a wave of job losses of those employed by the coal industry.
There is also the added issue of increasing supply of monies to other EU countries for the sake of economic and social convergence, something that those who will have to pay for it will most likely oppose. Neither of these measures is a vote winner and this will most certainly affect an already embattled CDU, after a historical disastrous Federal Election.
Health Insurance contributions are yet another headache for Angela Merkel. SPD asked for equalisation of contributions for Healthcare meaning that, if there is a deal, employers will have to pay more for their employees healthcare.
The issue of Immigration and Immigration Control is also at the forefront in the exploratory talks between CDU and SPD with winds that blow in the direction of less Immigration. Angela Merkel knows that Immigration is an important issue and also knows that if she is seen as somebody that wants to maintain the status quo she will lose, once again, to Alternative für Deutschland and others who are against present levels of immigration.
Parties stated that these were merely exploratory talks and if at the end of the process there is no agreement there would be a new Federal Election and Angela Merkel might not be the candidate leading CDU as discontent within the CDU/CSU is rising.