BERLIN, 6 October 2005 — Germany’s conservative Angela Merkel and Chancellor Gerhard Schroeder voiced optimism after talks yesterday that their rival parties would resolve a row over who should lead the country and seal a deal to share power.
Following a two-and-a-half hour meeting to resolve Germany’s crippling political impasse, Merkel sounded more positive on the prospects of forging a new government than she has since she narrowly edged ahead of Schroeder in a Sept. 18 election.
The vote left neither Merkel’s Christian Democrats (CDU) nor Schroeder’s Social Democrats (SPD) with enough votes to form a government with their preferred partners, forcing them into talks with each other.
“Overall I am more optimistic than pessimistic,” Merkel told reporters. “On the basis of substantive policy issues I am broadly positive that I can recommend my party enter serious coalition negotiations.” Schroeder, speaking shortly after Merkel, struck a positive tone. “The exploratory talks have shown that there is a basis for a grand coalition,” he said.
The rhetoric from both parties contrasted sharply with the barbs they had exchanged ahead of the discussions. Merkel’s CDU had threatened to break off talks unless Schroeder, who has refused to concede defeat, agreed to step down.
While this issue was not resolved in yesterday’s discussions, the comments suggested a breakthrough could come soon, with both parties pledging to hold another high-level meeting to clear up who would be Germany’s next chancellor.
A source who attended yesterday’s meeting told Reuters this second meeting — to be attended by Merkel, Schroeder, SPD chief Franz Muentefering and Christian Social Union (CSU) head Edmund Stoiber — would take place today at 7 p.m. (1700 GMT).
“I got the signal from the SPD that there is a readiness for such a meeting,” Merkel said when asked whether Schroeder had given any signs he could step down. “Overall I have the impression that there is a clear will by the SPD to ensure that coalition talks can start.”
The tone of the comments suggests Germany’s top parties may be close to ending a deadlock that has plagued the country for two-and-a-half weeks.
Once Europe’s economic powerhouse, Germany now faces weak growth, high unemployment and a stubborn budget deficit.
Protracted talks and conflicts between the CDU and SPD over how to solve Germany’s woes risk exacerbating these problems.
But CSU chief Stoiber said the talks had shown that a consensus existed on problems in the labor market, on the need to address Germany’s budget woes and to tackle its cumbersome federal structure.
“Consolidation of the budget, a cleaning up of our social security system — these issues can be better solved by a grand coalition,” Stoiber said. “I am optimistic that we can come to serious talks in the next week if the other issues are cleared up,” he added, in a reference to the chancellor issue.
Others are more cautious about whether a grand coalition, which existed only once before in Germany in the 1960s, is a cure all for the best solution.
German industry fears the SPD could block some of Merkel’s plans to loosen the labor market by easing firing rules and cutting payroll costs.
“The talks on forming a grand coalition are going back and forth and are unlikely to lead to a modernization of the German economy,” said Anton Boerner, president of the BGA trade association yesterday.
