Merkel Secures Government Deal with Social Democrats

German Chancellor Angela Merkel’s Conservative party has reached an agreement to form a coalition government with the Social Democrats, following weeks of negotiations. This agreement is set to be ratified by approximately 470,000 members of the Social Democratic Party in a vote scheduled for next month before Chancellor Merkel can commence her third term.

The coalition deal stipulates that there will be no tax increases, and the Social Democrats achieved a significant concession regarding a mandatory minimum wage. This minimum wage, set at 8.50 euros per hour, will be introduced for the first time in 2015, though it will not be fully implemented until 2017.

Additionally, the retirement age will be reduced from 67 to 63 for individuals who have contributed to the system for over 45 years, a key demand from the Social Democrats. The coalition package also encompasses agreements on pension increases, adjustments to dual citizenship regulations, and advancements in renewable energy.

Hermann Groehe, the secretary general of the CDU, remarked on the effort involved in the negotiations, stating, “The work is done. It has been very intense and at times quite challenging, but I believe we have produced a result that benefits our country while reflecting a strong Conservative influence.”

Senior SPD MP Karl Lauterbach noted that while his party had succeeded on significant issues, they would need to address “many reservations” among their members. He emphasized, “The Social Democratic signature on this coalition agreement is everywhere.”

Merkel’s Christian Democrats won 42% of the vote in the elections held on September 22, securing her third successive victory; however, they did not achieve an overall majority. The Social Democrats garnered 26% of the vote, while Merkel’s previous coalition partners, the Free Democrats, failed to meet the minimum 5% threshold required for parliamentary representation.