Germany: Politics again on the forefront – BBH

The immediate political focus in Europe is on the German attempt to put together a new government three months after the election, suggests the research team at BBH.  

Key Quotes

“In Germany's way, there will be exploratory talks first.  These can talk several weeks.  Merkel does not want to lead a minority government.  The SPD does not want to lose its identity in another coalition government.  Both blocs do not want to return to the polls.  In the September election, both saw their public support fall to post-WWII lows.”

“A type of arrangement where the SPD and CDU/CSU agree on several broad programs and then fight for the rest of the agenda in the Bundestag seems like a minority government.  However, it may be the basis of a compromise.  It allows the SPD to still be the main opposition party (rather than the AfD) and draw the parliamentary privileges associated with it.”