German Chancellor Angela Merkel's Christian Democratic Union (CDU) and the opposition Social Democratic Party (SPD) today struck a deal on a new "grand coalition" to replace the centre-right government, which lost power in the parliamentary election nearly a month ago.
Leaders of both parties said at the conclusion of their third round of exploratory talks in Berlin that coalition negotiations could be kicked off on next Wednesday, a day after the newly-elected Bundestag, the lower house of parliament, holds its constituting session.
The breakthrough came after the CDU and its Bavarian sister party Christian Social Union (CSU) showed willingness to accept the SPD's demand to introduce nation-wide minimum wage for all sectors through legislation.
The SPD said it no longer insists on tax hike as a condition to join a new "grand coalition" the second under Merkel's leadership.
"We came to the conclusion that even on contentious issues, it will be possible to find solutions acceptable to both sides and in line with national interests," Sigmar Gabriel, chairman of SPD said after their three-hour meeting.
The SPD delegation unanimously agreed to take up coalition negotiations with the two conservative parties and to recommend it to a special party congress on Sunday, he said.
"We are convinced that there is a good basis to bring coalition negotiations to a successful conclusion, even though we cannot present any concrete agreement in specific areas," he told journalists after the meeting.
Ahead of today's discussions, CSU chairman Horst Seehofer indicated for the first time that his party is prepared to accept the SPD's demand to introduce a nation-wide minimum wage of 8.50 euros.
Gabriel said his party will outline its central themes for the coalition negotiations at the party congress where it will also seek the delegates' approval to pursue negotiations.
In spite of a resounding victory for the CDU in the election on September 22, Merkel needs a new coalition partner as her junior partner, the Free Democratic Party (FDP) failed to gain parliamentary representation by missing the minimum five per cent votes needed.
The CDU's exploratory talks with the opposition Green party on forming a new coalition collapsed on Tuesday, leaving a coalition with the SPD as the only alternative for Merkel to avoid a new election. Merkel headed a grand coalition in her first term between 2005 and 2009.
The CDU and the CSU, which together polled 41.5 per cent of the votes and secured 311 seats in the new Bundestag, fell five seats short of an absolute majority.
Together with the SPD's 193 seats, the new government will have a majority of 504 seats in the 631-member Bundestag.
The new coalition will dominate the lower house to such a level the two opposition parties, the Left party and the Green party, with a share of 127 seats, will not get sufficient votes to pass setting up of an inquiry commission or other motions against the government.
Leaders of both parties said at the conclusion of their third round of exploratory talks in Berlin that coalition negotiations could be kicked off on next Wednesday, a day after the newly-elected Bundestag, the lower house of parliament, holds its constituting session.
The breakthrough came after the CDU and its Bavarian sister party Christian Social Union (CSU) showed willingness to accept the SPD's demand to introduce nation-wide minimum wage for all sectors through legislation.
More From This Section
In exchange, the SPD offered its readiness for compromise on its demand for raising the taxes on high-income earners, which was vehemently opposed by the two conservative parties.
The SPD said it no longer insists on tax hike as a condition to join a new "grand coalition" the second under Merkel's leadership.
"We came to the conclusion that even on contentious issues, it will be possible to find solutions acceptable to both sides and in line with national interests," Sigmar Gabriel, chairman of SPD said after their three-hour meeting.
The SPD delegation unanimously agreed to take up coalition negotiations with the two conservative parties and to recommend it to a special party congress on Sunday, he said.
"We are convinced that there is a good basis to bring coalition negotiations to a successful conclusion, even though we cannot present any concrete agreement in specific areas," he told journalists after the meeting.
Ahead of today's discussions, CSU chairman Horst Seehofer indicated for the first time that his party is prepared to accept the SPD's demand to introduce a nation-wide minimum wage of 8.50 euros.
Gabriel said his party will outline its central themes for the coalition negotiations at the party congress where it will also seek the delegates' approval to pursue negotiations.
In spite of a resounding victory for the CDU in the election on September 22, Merkel needs a new coalition partner as her junior partner, the Free Democratic Party (FDP) failed to gain parliamentary representation by missing the minimum five per cent votes needed.
The CDU's exploratory talks with the opposition Green party on forming a new coalition collapsed on Tuesday, leaving a coalition with the SPD as the only alternative for Merkel to avoid a new election. Merkel headed a grand coalition in her first term between 2005 and 2009.
The CDU and the CSU, which together polled 41.5 per cent of the votes and secured 311 seats in the new Bundestag, fell five seats short of an absolute majority.
Together with the SPD's 193 seats, the new government will have a majority of 504 seats in the 631-member Bundestag.
The new coalition will dominate the lower house to such a level the two opposition parties, the Left party and the Green party, with a share of 127 seats, will not get sufficient votes to pass setting up of an inquiry commission or other motions against the government.