German Parliament Elects Angela Merkel for Third Term

Angela Merkel has been elected to a third term as German chancellor by the lower house of parliament, setting the stage for her grand coalition government to be inaugurated later in the day.

In the vote, 462 of the 621 parliament members supported Ms. Merkel, while 150 opposed her, and nine members chose to abstain.

In the German elections held on September 22, Ms. Merkel’s Conservative party received 42% of the vote but did not achieve an overall majority, necessitating extensive negotiations with the Social Democratic Party (SDP).

The SDP agreed to support the coalition on Sunday. The coalition agreement stipulates no tax increases, while the SDP gained a significant concession concerning the introduction of a mandatory minimum wage of 8.50 euros per hour, set to begin in 2015 and fully implemented by 2017.

Additionally, the retirement age will be reduced from 67 to 63 for individuals who have contributed to the system for over 45 years, which was a key demand of the SDP.

The agreement also includes provisions for pension increases, updates to dual citizenship regulations, and further advancements in renewable energy development.

These coalition negotiations were the lengthiest for any German government since World War II.

Within the new cabinet, the SDP will hold six ministerial positions, with party leader Sigmar Gabriel assuming the role of economy minister and deputy chancellor, while Frank-Walter Steinmeier is set to become the foreign minister.

Wolfgang Schauble will continue as Germany’s finance minister, signaling a commitment to maintaining Germany’s strict fiscal policies in light of the euro zone debt crisis.

The first official cabinet meeting is scheduled to take place later in the evening at the chancellery, following the swearing-in of the new cabinet members.