German’s center-left Social Democrats (SPD) have agreed to form a grand coalition with Chancellor Angela Merkel's party, the CDU, after months of political uncertainty.

Some 66 percent of the SPD members approved entering a coalition with Chancellor Angela Merkel's Christian Democratic Union (CDU) and its Bavarian sister party Christian Social Union (CSU), the social democrats’ official confirmed on Sunday after a postal ballot.

“We now have clarity,” SPD chief Olaf Schols announced in the party’s HQ in Berlin. He added that he'll work on putting a cabinet together this week. Scholz has already informed Merkel on his party fellows’ decision.

The stalemate to form a government has lasted for months, following the September 24 general election. The "grand coalition" has governed Germany since 2013.

If the Social Democrat members voted against the talks, it would almost certainly trigger fresh elections that could end Merkel’s 12-year leadership of the country.

In late February CDU on its part approved a coalition deal with the SPD. The Christian Democrats' conference in Berlin followed Merkel’s announcement of her picks for a new, younger cabinet intended to rejuvenate the party. </s> The Christian Democratic Union (CDU), the Christian Social Union (CSU) in Bavaria and the Social Democratic Party of Germany (SPD) have reached a breakthrough in coalition talks on the formation of the country's government, the Reuters news agency reported, citing its sources.

After the CDU/CSU bloc failed to form a government with the Greens and the Free Democratic Party, they counted on the coalition with the SPD, which had initially refused to participate in it, but then changed their position on the matter.

READ MORE: 'It Will Be a Hard Day': Merkel on Stalled Government Coalition Talks

As the SPD leader Martin Schulz has revealed during the talks, lasting from January 7 till 11, the sides had set up a good foundation for the upcoming preliminary talks.

The hard situation in forming a government is connected to the German Free Democratic Party's (FDP) decision to withdraw from the coalition talks with the CDU/CSU and the Greens in on November 20, 2017. As a result of this move, if the coalition talks fail, the remaining options for Merkel will be snap elections or a minority government.

READ MORE: German Chancellor Merkel to Reveal Her Plans on Forming Government in 2018 </s> The Social Democrats (SPD), Christian Democrats (CDU) and their Bavarian counterparts, the Christian Social Union (CSU) had given themselves five days to discover whether there was enough common ground to start coalition talks. On the final day, and after more than 24 hours of huddling together, they appear to have stuck to their word.

Sources close to the talks announced Friday morning that a blueprint was in place that would allow for more detailed talks on forming another so-called grand coalition to take place.

While the news certainly bolsters the chances of Germany finally forming a new government after months of uncertainty, it's not a done deal yet.

Martin Schulz, the leader of the SPD, now has to make good on his promise and let the party's grassroots vote next week on whether the blueprint reflects enough of an SPD thumbprint that party members could live with.

How did we get here?

After the CDU/CSU outperformed the SPD in Germany's September 24 national election, Merkel was charged with forming a government, while Schulz declared that the Social Democrats would go into the opposition. But the breakdown of talks to form a three-way coalition between conservatives, the center-right business-friendly Free Democratic Party and the Greens (FDP) put the grand coalition back on the table as the only other realistic chance for a parliamentary majority.

Read more - The pros and cons of a grand coalition

That put Schulz in a bind. Having categorically ruled out another grand coalition and under pressure from the party's leadership, Schulz had to find a way to change tack without losing face. At a party conference in December, Schulz managed to secure secure support, albeit reluctantly, from the party faithful to enter exploratory talks with the caveat that a final decision would be voted on again by party members.

What do the two parties agree upon?

There is broad consensus between conservatives and Social Democrats on foreign policy and the European Union. Angela Merkel is a committed European, and conservatives have no problem with Social Democratic Foreign Minister Sigmar Gabriel, who would be more than happy to stay on in that post. The issue of refugees was viewed as a potential deal-breaker, although the SPD and the conservatives would have to hammer out a compromise on a hard cap on the number of refugees Germany accepts annually and on whether family members have a right to come join all refugees.

Otherwise, the two sides could likely reach consensus about popular initiatives like investing more in education, hiring more police officers and improving Germany's mediocre digital infrastructure. A law governing immigration to Germany would be within the realm of possibility, too.

What were some major points of conflict?

Merkel had said that "economic growth" should be at the core of potential coalition talks, while Schulz made "social equity" the focus of his unsuccessful campaign to unseat the chancellor. Those are the basic contours of the core disagreements between the two parties, as two examples illustrate.

The Social Democrats have floated the idea of unified health insurance for all, co-financed by employers and employees. That hasn't gone down well with privately insured people, and conservatives hate the idea.

The CDU/CSU favors using surplus state revenues to finance a broad-based tax cut, but the Social Democrats want to see any tax relief targeted at low- to middle-income Germans and favor raising the inheritance tax and the uppermost income tax rates.

The biggest winner in a new grand coalition would be Angela Merkel. She's already headed two grand coalitions in her 12-plus years of governing, and what she mainly wants at present is to form a stable government.

For her parliamentary group, the CDU/CSU, another spell with the Social Democrats would be a dubious blessing. The conservatives would be again the senior partners in the government, but they also recorded their worst election results in decades in September — perhaps in part because Merkel has moved them so far to the left.

Arguably, the Social Democrats would again come out the "losers" of such an arrangement. The SPD's share of the vote has declined every time after they've done deals with the conservatives, and it's hard to see them recovering after another stint as Merkel's junior partners.

Does this mean it's a done deal?

Given the protracted state of limbo, don't take anything for granted. As mentioned above, the SPD's party members could throw a spanner in the works. There's also no guarantee that the actual coalition talks reach a happy end.

In that event, the two remaining options are a snap election or a conservative-led minority government tolerated by the Social Democrats.

With the popularity of Germany's two biggest parties declining, the disadvantages of a new vote for them are obvious. The fear is that the far-right populist Alternative for Germany (AfD) party would emerge stronger if Germans went back to the polls.

A conservative-led minority government would mean that the CDU/CSU would have to seek partners for every bit of legislation it wanted to enact. Hardly a stable situation.

The Social Democrats would be in the opposition, but they would also be caught in a dilemma. The more government initiatives they tolerated, the more they would be open to accusations of pursuing a grand coalition in everything but name. The more government measures they refused to support, the more they could be charged with obstructionism. Hardly an enviable situation. </s> German's center-left Social Democrats (SPD) have agreed to form a grand coalition with Chancellor Angela Merkel's party, the CDU, after months of political uncertainty. The deal was reached despite divisions within the SPD.Some 66 percent of the SPD members approved entering a coalition with Chancellor Angela Merkel's Christian Democratic Union (CDU) and its Bavarian sister party Christian Social Union (CSU), the social democrats' official confirmed on Sunday after a postal ballot.Almost 464,000 members were eligible for voting, with a total of 378,437 having cast their ballot, NTV reports "We now have clarity," SPD chief Olaf Schols announced in the party's HQ in Berlin. He added that he'll work on putting a cabinet together this week. Scholz has already informed Merkel on his party fellows' decision. The acting Chancellor congratulated the SPD on the "clear result," saying she is looking forward to continuing work with the Social Democrats. If the Social Democrat members voted against the talks, it would almost certainly trigger fresh elections that could end Merkel's 12-year leadership of the country.In late February CDU on its part approved a coalition deal with the SPD. The Christian Democrats' conference in Berlin followed Merkel's announcement of her picks for a new, younger cabinet intended to rejuvenate the party.The stalemate to form a government has lasted for months, following the September 24 general election. Shortly after the polls, in which Merkel's party along with the SPD saw a dramatic drop in voter support, the chancellor attempted to form so-called 'Jamaica' coalition with the Free Democratic Party (FDP) and the Greens.The option evaporated as the FDP pulled out of the negotiations, with divisions over immigration being among the key stumbling blocks. Merkel was then forced to look for another coalition partner to avoid new polls or forming a minority government.Former SPD leader Martin Schulz repeatedly ruled out forming a coalition with the CDU both in the run-up to the September elections and after them. The parties locked horns over their vision for Europe, among other issues. Schultz has advocated strongly for the creation of a 'United States of Europe' under a single constitution by 2025. This position has received little support from CDU members.The potential new alliance with Merkel was also met with vehement opposition from some SPD members, especially within the party's youth wing. Against all odds and despite internal divisions in the SPD, the two parties finally reached a coalition deal in February. </s> Image copyright AFP Image caption Angela Merkel and Martin Schulz stressed the need for social cohesion

German politicians have achieved a breakthrough in talks aimed at forming a new coalition government.

A blueprint for formal negotiations was agreed between Chancellor Angela Merkel's Christian Democrats (CDU) and their former coalition partners, the Social Democrats (SPD).

Politicians stayed up all night to discuss the 28-page document, with the talks lasting more than 24 hours.

But they managed to reach agreement on key sticking points such as migration.

They plan to limit asylum-seeker arrivals to about 200,000 annually. The blueprint also speaks of capping at 1,000 a month the number of migrants who will be allowed to join their family living in Germany.

Stress on 'social cohesion'

Mrs Merkel and SPD leader Martin Schulz told a news conference they were optimistic that a new "grand coalition" could be formed.

They spoke of a "fresh start" for Germany, and Mr Schulz said that in Europe "we are determined to deploy Germany's strength".

Both stressed the need to ensure Germany's "social cohesion", a veiled recognition of voter frustration with centrist politics, amid tensions over the influx of asylum seekers.

The September election saw the far-right Alternative for Germany (AfD) win 94 seats in parliament - a first for post-war Germany.

Both the CDU and SPD suffered their worst election results for more than 50 years.

Uneasy partnership

By Jenny Hill in Berlin

After a gruelling all-night session - fuelled by currywurst - Angela Merkel appears to have clinched the deal.

The breakthrough is no doubt a relief to the chancellor, who might have faced the prospect of fresh elections had the talks failed. But Mrs Merkel won't be cracking open the Sekt straight away.

These were just exploratory talks, aimed at establishing whether there's a basis upon which a coalition can be formally negotiated. Before the next round of talks can go ahead, the SPD must give the go-ahead at a special party conference.

Bear in mind that many in the SPD - which had originally refused to work with Mrs Merkel again - blame her for their disastrous election result, and are still uncomfortable about another four years in her shadow.

Even if they approve the negotiations, any coalition treaty will be put to the SPD's 400,000 members in a postal ballot. Mrs Merkel is not out of the woods yet.

German official figures show that 280,000 asylum seekers arrived in 2016, a drop of more than 600,000 on the total for 2015. Arrivals fell after EU countries and Turkey tightened border controls.

However, the number of asylum applications continued to rise in 2016. The huge 2015 influx - many of them Syrians, Iraqis and Afghans fleeing war - created a major integration problem for German authorities.

Stumbling blocks

The centre-right CDU and its Bavarian CSU ally have been unable to form a government since the inconclusive election.

The German daily Die Zeit published the text of the CDU/CSU-SPD blueprint for formal negotiations. Under a coalition the parties would seek to:

Crack down on tax avoidance in the EU, plugging tax loopholes exploited by US tech giants and other big corporations

Press for "equal pay for equal work" across the EU, to make the labour market fairer

Turn the European Stability Mechanism (ESM) - the main bailout fund - into a European Monetary Fund under parliamentary control

Seek joint policies with France on all major international issues

Create a centre for artificial intelligence with France

Adopt measures to reduce child poverty, strengthen equal rights for women and attract more foreign skilled workers to Germany

Promote renewable energy, so that it achieves a 65% share of power generation by 2030.

Initially the SPD ruled out governing with Mrs Merkel in charge again. But Mr Schulz changed his mind after CDU coalition talks with the liberal Free Democrats (FDP) and Greens broke down.

It is Germany's longest ever post-war period of coalition-building and there is still a long way to go before a coalition deal can be clinched.

The SPD will hold a special congress in Bonn on 21 January to decide how to proceed. </s> BERLIN - German politicians have achieved a breakthrough in talks aimed at forming a new coalition government, reported BBC News.

A blueprint for formal negotiations was agreed between Chancellor Angela Merkel's Christian Democrats (CDU) and their former coalition partners, the Social Democrats (SPD).

Politicians stayed up all night to discuss the 28-page document, with the talks lasting more than 24 hours.

Dr Merkel and SPD leader Martin Schulz told a news conference they were optimistic that a new "grand coalition" could be formed, reported BBC News.

They spoke of a "fresh start" for Germany, and Mr Schulz said that in Europe, "we are determined to deploy Germany's strength". They signalled that a stronger alliance with France in the European Union would be a priority.

Dr Merkel wants to conclude negotiations on forming a coalition government by mid-February, a source in her conservative party said on Friday (Jan 12).

The goal is to give the SPD ample time to hold a postal vote among its members on the coalition agreement with Dr Merkel’s CDU and their Christian Social Union (CSU) Bavaria-based allies. Dr Merkel’s conservatives had said they want to have a government in place by the end of March.

The SPD, Germany's second-largest party, said in a statement on Friday that its 45-member board had overwhelmingly given its blessing to formal coalition negotiations with Dr Merkel's conservatives following a deal in principle sealed earlier in the day, reported Agence France-Presse.

The draft programme, outlining policy goals during Dr Merkel's fourth term, must now be approved by 600 SPD delegates at a party congress on Jan 21 and then by the party's more than 400,000 rank-and-file members. </s> Members of Germany's Social Democrat Party (SPD) have voted in favour of entering a coalition with Chancellor Angela Merkel's conservatives in a postal ballot, according to a statement by the party.

The vote clears the way for a rerun of the "grand coalition" that has governed Germany since 2013. It also puts an end to more than four months of political uncertainty in Europe's largest economy by making Merkel the country's chancellor for the fourth term.

SPD acting leader Olaf Scholz said on Saturday turnout in the poll had been "very, very high" after an intense internal campaign that pitted the party's pro-coalition leadership against its more left-wing youth wing, which campaigned for "no".

Representatives from Merkel's Christian Democratic Union (CDU) party, alongside partners from the Bavarian Christian Social Union (CSU) party, agreed on terms with SPD negotiators for a new partnership last month.

Al Jazeera's Dominic Kane, reporting from the capital Berlin, said that two-thirds of the party members voted to form another grand coalition with Merkel's bloc.

"It is a decisive majority, but there is no sense of jubilation among the SDP leadership," he said.

"The heads, rather than the hearts of the party members, made this decision. They believe being in coalition with Merkel costs this party votes."

Many in the party, including former leader Martin Schulz, had ruled out forming a coalition with Merkel's conservatives, saying that September's poll results - which saw the SPD recording its worst post-war election performance, at 20.5 percent - had directed the party to go into opposition.

However, the SPD agreed to negotiate with Merkel's conservatives after talks with the pro-business Free Democrats (FDP) and the environmentalist Greens on a three-way tie-up collapsed in November.

Schulz, the who led the party during the elections, quit in the process of the coalition talks.

The SPD has already been the junior partner in two Merkel-led "grand coalitions", from 2005 to 2009 and from 2013 to 2017.

Merkel's CDU/CSU alliance had finished first, securing 33 percent of the vote, down nine percentage points from 2013.

The biggest shock, however, was the emergence of the far-right Alternative for Germany (AfD) party as the country's third-biggest political force, winning a 12.6 percent share of the vote. </s> BERLIN (Reuters) - German Chancellor Angela Merkel wants to conclude negotiations with the Social Democrats (SPD) on forming a coalition government by mid-February, a source in her conservative party said on Friday.

The goal is to give the SPD ample time to hold a postal vote among its members on the coalition agreement with Merkel's Christian Democrats (CDU) and their Christian Social Union (CSU) Bavaria-based allies.

Merkel's conservatives had said they want to have a government in place by the end of March. </s> BERLIN (Reuters) - German Social Democrats sounded downbeat about their coalition talks with Chancellor Angela Merkel’s conservatives on Wednesday, a day before both camps decide whether they want to move to formal negotiations on establishing a new government.

Merkel, weakened by an election setback in September, turned to the left-leaning Social Democrats (SPD) to seek a re-run of their so-called “grand coalition” after the collapse in November of talks on a three-way coalition untested at national level.

The chancellor, who has won widespread respect abroad in more than 12 years in power, needs the coalition talks to succeed in order to avoid her personal authority being further undermined and Germany’s international standing diminished.

The Social Democrats know this, and are playing hard ball.

“The mood is like the weather,” Ralf Stegner, one of the SPD’s deputy leaders, said as he gazed at the cloudy sky above Berlin ahead of Wednesday’s talks.

As Europe’s largest economy and pre-eminent power broker, Germany is crucial to the region’s fortunes. Berlin’s partners are eagerly awaiting a new German government to help drive forward Brexit talks, euro zone reform and EU diplomatic initiatives.

Senior officials from the SPD, Merkel’s Christian Democrats (CDU) and their Bavarian sister party, the Christian Social Union (CSU), have been holding exploratory talks this week on whether to pursue formal coalition negotiations.

The talks are due to conclude on Thursday, before SPD leaders recommend to their members whether they should shift into official negotiations.

“We have a lot of work ahead of us today and tomorrow,” said conservative Finance Minister Peter Altmaier.

Participants have described the negotiations as “good”, but SPD leaders need to convince their party members as they are offering them a vote on Jan. 21 on whether to proceed.

The leader of the Jusos youth branch of the SPD told broadcaster ARD that a deal between the coalition negotiators to drop plans to lower carbon dioxide emissions by 40 percent from 1990 levels by 2020 “was not a good start to these talks”.

Merkel has ruled with the SPD in a sometimes unwieldy “grand coalition” in two of her three previous terms in office, including in the last parliament from 2013-2017. But both parties bled support in the Sept. 24 election, which saw the far-right Alternative for Germany (AfD) enter the Bundestag (national parliament) for the first time.

Many in the SPD rank-and-file oppose a repeat of the grand coalition as they fear it will further diminish the identity of the party, which suffered its worst result in September’s vote since 1933. Some SPD members are also concerned that a new grand coalition would make the AfD the main opposition party.

Despite such reticence, German media reported on Tuesday that conservative and SPD negotiators had reached agreement on a law to attract skilled immigrants.

Should the two biggest party groups fail to agree on moving ahead, Merkel could try to form a minority government or Germany could face new elections.

President Frank-Walter Steinmeier, eager to broker a deal, is keenly aware that the source of Germany’s international clout is its economic might and that businesses want a stable coalition soon to end the uncertainty and avoid another vote.
The CDU/CSU (Christian Democrats) and SPD (Social Democrats) agree on a blueprint for formal negotiations on a new "grand coalition" government after the September 2017 federal election.