Germany has been thrust into political disarray as talks to form a new coalition government recently collapsed after the liberal Free Democrats walked out of negotiations with Chancellor Angela Merkel’s conservatives and the Greens, saying there was no hope the parties could break their stalemate.
Before the breakdown, the Social Democrats (SPD) reiterated they would not renew a so-called grand coalition with Merkel’s Christian Democrats. If the SPD, led by Martin Schulz, a former MEP and President of the European Parliament, doesn’t reverse course, a new election is almost inevitable.
On Tuesday, Jo Leinen, a Socialist MEP from Germany, told this website, “The failure of chancellor Merkel to form a government is poisonous for Europe. In the upcoming months far-reaching decisions about the future of the European Union have to be taken, especially concerning the reform of the economic and monetary union, the creation of a defence union, and the EU’s finances after 2020 with the introduction of own resources.
“As long as no new government has a majority in Germany, the former government will function as a caretaker government and manage Germany’s day-to-day business. There is no risk of Germany becoming unstable.”
He added, “However, only a government which is elected by the new Bundestag has the legitimacy and power to actively shape the EU's future together with France and other key partners. With Berlin being busy with itself, Germany will not be able to give new impulses and the EU’s reform agenda is practically put on hold.
“In the elections on 24 September, German voters gave clearly no mandate to continue the grand coalition. The SPD should thus stay true to itself and its supporters and not enter yet another Grand Coalition. As leader of the strongest party, it is Merkel’s responsibility to find partners and form a government.
“If Merkel approaches the SPD and offers concessions for a more social Europe, the SPD will take on its responsibility and reflect on the possibility to support a minority government led by the CDU. In Germany, we have a new situation that needs creative responses.”
He added, “The experience in other European countries has shown, that minority governments are not necessarily less stable. Yet, the SPD can neither support any government which does not work for a more democratic, social and successful European Union, nor can it be forced into a coalition that has no support amongst its own membership and the population.”
Further comment came from Hans-Olaf Henkel, another German MEP, who warned the crisis in Germany could have consequences for the EU, saying that new elections may be necessary.
The ECR group member told CNN, “The EU and Europe generally needs a strong Germany which is one reason why this all needs resolving as soon as possible.”
Angela Merkel is thought to want to avoid a new election while the SPD are angling for specific policy shifts as the price for signing up as the junior government partner once again, including more supplementary pensions for low-income pensioners and changes to private health insurance.
Merkel spoke out on Saturday against holding another election, saying she intends to form a government as soon as possible.
“The people have voted. And I absolutely do not favour, if we can’t do anything with the result, asking people to vote again,” Merkel said at a CDU party conference in Kühlungsborn in Northern Germany.
The SPD decided last Friday to help resolve a deadlock in talks to form a coalition government, dropping its earlier refusal to consider governing with Merkel’s conservatives.
“The SPD is deeply convinced there should be discussions,” Hubertus Heil, the party’s general secretary, told reporters on Friday. “The SPD will not refuse to talk.”
Merkel told the party conference on Saturday she was ready to talk to the SPD, but said the discussions should be based on mutual respect.
“Europe needs a strong Germany, it is desirable to get a government in place quickly,” Merkel said. She also stressed that her acting government is able to carry out its day-to-day business.