Angela Merkel is accused of making too many concessions to the Social Democrats

German’s Social Democratic grass roots are in revolt and may veto a new government in their upcoming vote. If SPD members say no, a grand coalition will be dead.

Martin Schulz, the passionately pro-EU SPD leader, vowed not to enter a grand coalition with Angela Merkel’s CDU/CSU bloc in the immediate aftermath of the Bundestag election, which took place last September, but performed a U-turn – under pressure from senior party members and Germany’s president Frank-Walter Steinmeier – after Mrs Merkel’s efforts to form a three-way coalition with the pro-business Free Democrats and the Green party failed in November.

Mrs Merkel’s conservative alliance and the SPD each had their worst election result in the post-war period in September, while Germany’s left and right fringes were strengthened. The far-right populist Alternative for Germany (AfD) entered the Bundestag for the first time.

Many Social Democrats have blamed Mrs Merkel for their dismal performance. They argue that the SPD needs to go into opposition to rebuild its identity and reconnect with voters, because at the moment too little divides Germany’s two largest parties.

Mrs Merkel and Mr Schulz reached an agreement last Wednesday to revive a grand coalition that governed Europe’s largest economy for eight of the past 12 years. Mr Schulz secured six ministries in a new government for the SPD, including finance, foreign and labour, giving the Social Democrats a critical role in shaping Berlin’s policy on Europe over the next four years. Ms Merkel’s CDU secured five ministries, with the CSU winning a further three. Mrs Merkel awarded the centre-left higher spending on infrastructure, pensions and public services.

Later this month, Mrs Merkel will reveal the names of the five CDU ministers likely to take their place in the new cabinet.

Under a grand coalition agreement, Olaf Scholz, the popular mayor of Hamburg, is set to take on the powerful role of finance minister. He would follow eight years of Wolfgang Schäuble, who dominated Europe’s policy response to the eurozone debt crisis, forcing eurozone countries, which received international bailout loans, to enact significant budget cuts and other tough austerity measures.

Mrs Merkel came under fire for giving key ministries to the SPD to secure a fourth term as German chancellor. Conservative critics think that the concessions are too generous, but there is no sign of an open revolt against her.

Mr Schulz also faced anger from across the SPD after taking the foreign ministry job, having previously insisted he would never to serve in a government led by Mrs Merkel. His decision created a credibility problem. Sigmar Gabriel, the serving foreign minister, attacked him in a newspaper interview for taking his job. Mr Schulz on Friday abandoned his plan to become Germany’s next foreign minister after the SPD’s youth wing accused him of securing a favourable position for himself.

The SPD will now put a coalition deal to its 460,000 members for a vote later this month, with results due on March 4. The party’s youth wing is already campaigning for a no-vote as it fears that another grand coalition with Mrs Merkel’s conservatives will further erode the party’s identity.

If approved, a coalition deal would end Germany’s longest period without a government since the Second World War.

Photo: Annika Haas (EU2017EE)

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