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DRESDEN, Germany (Reuters) – German Chancellor Angela Merkel called on her conservatives on Saturday to create a three-way alliance with pro-free Free Democrats (FDP) and Green, with its clearest support for the so-called "Jamaica" coalition.
Merkel, who won the fourth term in the September 24 elections, but encourages the support of the far right, must form a coalition. The "Jamaica" alliance, named after the black, yellow and green party colors that match the Jamaican flag, is the most likely way for the parliamentary majority.
Merkel also said that a special party should be held at a meeting in order for members of its conservative Christian Democrats (CDU) to discuss and vote on all coalition agreements.
She told the party's young party in Dresden that the members should focus on the conversations that lie ahead, first within the conservative block between the CDU and its sister party CSU from the state of Bavaria, and then the FDP and the Green.
Aside from internal differences in the conservative camp, especially on migrant policy, the three blocs that would form the Jamaica coalition are at odds on energy and climate policy, tax and Europe.
Yet in a marked shift, Merkel made clear there were no other realistic options. She closed the door on another tie-up with the Social Democrats (SPD), her coalition partners for the past four years, who have announced their intention to go into opposition after slumping to their worst post-war result.
“It is clear that the Social Democrats are not capable of being in government on the national level in the foreseeable future, so I advise us all to waste no time thinking about that any more,” said Merkel.
If Merkel is unable to form a “Jamaica” coalition, the prospects of a minority government or even new elections loom, an unpalatable scenario for investors who are already spooked by months of uncertainty ahead.
CRUNCH TALKS WITH CSU
Merkel’s first task in building a coalition comes on Sunday when she meets the CSU to agree common positions, most notably on migrant policy, before starting exploratory talks with other parties.
The CSU, which has served as sister party to the CDU for decades, fears heavy losses in next year’s Bavaria election and is digging its heels in over a demand for a cap on the number of refugees. Merkel says a cap would breach the constitution which guarantees asylum to politically persecuted people.
Merkel, who left Germany’s borders open to 1 million migrants in 2015, acknowledged her handling of that crisis had shaken the relationship between the CDU and CSU, and took responsibility for election losses because of her decision.
Most of the migrants who arrived two years ago entered Germany through Bavaria.
Merkel implored both parties to compromise, saying the parties’ deal to live with their differences and fight the election together this year had meant they had won.
“I will do everything I can to move this forward.. With good will, that is possible,” she said.
The conservative youth wing on Friday agreed on a “Dresden declaration” calling for change after the heavy election losses. While it stopped short of the CSU’s demand for an upper limit on migration, it rejected “uncontrolled” immigration.
On euro zone reform, Merkel sounded skeptical on the idea of a finance minister for the currency zone.
“A finance minister will only be appointed if a finance minister is necessary,” she said.
The FDP has said it could not agree to a euro zone budget that would help redress economic imbalances within the bloc.
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Aside from internal differences in the conservative camp, especially on migrant policy, the three blocs that would form the Jamaica coalition are at odds on energy and climate policy, tax and Europe.
Yet in a marked shift, Merkel made clear there were no other realistic options. She closed the door on another tie-up with the Social Democrats (SPD), her coalition partners for the past four years, who have announced their intention to go into opposition after slumping to their worst post-war result.
“It is clear that the Social Democrats are not capable of being in government on the national level in the foreseeable future, so I advise us all to waste no time thinking about that any more,” said Merkel.
If Merkel is unable to form a “Jamaica” coalition, the prospects of a minority government or even new elections loom, an unpalatable scenario for investors who are already spooked by months of uncertainty ahead.
CRUNCH TALKS WITH CSU
Merkel’s first task in building a coalition comes on Sunday when she meets the CSU to agree common positions, most notably on migrant policy, before starting exploratory talks with other parties.
The CSU, which has served as sister party to the CDU for decades, fears heavy losses in next year’s Bavaria election and is digging its heels in over a demand for a cap on the number of refugees. Merkel says a cap would breach the constitution which guarantees asylum to politically persecuted people.
Merkel, who left Germany’s borders open to 1 million migrants in 2015, acknowledged her handling of that crisis had shaken the relationship between the CDU and CSU, and took responsibility for election losses because of her decision.
Most of the migrants who arrived two years ago entered Germany through Bavaria.
Merkel implored both parties to compromise, saying the parties’ deal to live with their differences and fight the election together this year had meant they had won.
“I will do everything I can to move this forward.. With good will, that is possible,” she said.
The conservative youth wing on Friday agreed on a “Dresden declaration” calling for change after the heavy election losses. While it stopped short of the CSU’s demand for an upper limit on migration, it rejected “uncontrolled” immigration.
On euro zone reform, Merkel sounded skeptical on the idea of a finance minister for the currency zone.
“A finance minister will only be appointed if a finance minister is necessary,” she said.
The FDP has said it could not agree to a euro zone budget that would help redress economic imbalances within the bloc.
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