Published by Global Banking and Finance Review
Posted on February 27, 2025
BERLIN (Reuters) - Senior figures from Germany's conservatives and the Social Democrats will begin exploratory talks on forming a coalition government on Friday, sources at the parties told Reuters.
Friedrich Merz, leader of the conservative bloc which came first in Sunday's election, has said he wants a government in place by Easter on April 20, a deadline seen as tight given the deep differences between the parties.
Difficulties could be further exacerbated by Merz's abrasive style, which has already drawn angry rebukes from his potential partner.
A coalition between the conservatives and the third-placed SPD is the only mathematical possibility for forming a government if all parties stick to a commitment not to govern with the Alternative for Germany, which came second, the best performance by a German far-right party since World War Two.
The exploratory talks, involving nine senior figures from each party, could later lead to more detailed discussions involving working parties for different policy areas, with the aim of drawing up a detailed programme for a four-year legislative agenda.
The conservatives focused their campaign on economic deregulation and a promise to curtail immigration. The SPD, whose Olaf Scholz remains acting chancellor until a new government is formed, wants a minimum wage hike and opposes Merz's vision for tighter border controls.
(Reporting by Andreas Rinke; writing by Thomas Escritt; editing by Mark Heinrich)
