Negotiations between Angela Merkel's conservatives and the Social Democrats have entered what's being billed, once again, as a decisive day. Labor market and healthcare policy points still divide the two parties.
Image: picture-alliance/dpa/G. Fischer
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On Wednesday morning Germany is still awaiting an announcement that Chancellor Angela Merkel's conservative bloc and the Social Democrats (SPD) have struck a deal to forge a new coalition government after elections on September 24, 2017.
As she headed into the final round of talks on Tuesday, Merkel called on all sides to make the necessary concessions and strike a deal that would end months of political limbo.
"Each of us will still have to make painful compromises," the chancellor said. "I am prepared to do that if we can be sure in the end that the advantages outweigh the disadvantages," she added.
"We live in turbulent times. We need a government that offers dependability in the interests of the people."
SPD leader Martin Schulz also said today's decisive stalks were "about nothing less than building stable, lasting government in one of the largest industrialized countries in the world."
However, the sides still remain divided on several issues, most notably labor and healthcare policy.
The CDU and its Bavarian sister party, the Christian Social Union (CSU), continue to reject any sweeping changes to Germany's health insurance system. The SPD, meanwhile, wants to see Germany's two-tier health system reformed with a new system that closes the care gap between citizens with private and statutory insurance.
The CDU's Klöckner said her party wanted to see welcome changes to Germany's healthcare model but warned that a "one-size-fits-all" system would be too expensive.
SPD chief Martin Schulz also wants to see the phasing-out of fixed-term job contracts. Some 2.8 million contracts in Germany are said to be on a fixed-term basis without an explicit reason, with workers under the age of 30 particularly affected.
Only once has federal Germany been ruled by a single party with a parliamentary majority. Coalitions are, therefore, the norm. DW looks at the various governing combinations that have presided in the Bundestag.
Image: Fabrizio Bensch/REUTERS
CDU-SPD (2025-?)
Yet another coalition of the conservative Christian Democratic Union, Christian Social Union (CDU/CSU) and the center-left Social Democrat Party (SPD) has taken office on May 6, 2025. Both the CDU and the SPD have dwindled in recent years, so there is now no talk of "grand coalition" as they embark on a mission to save Germany's economy from decline and society from further polarization.
Image: Florian Gaertner/IMAGO
SPD-Green Party-FDP (2021-2024)
From 2021 until late 2024, Germany was governed by a center-left coalition of Social Democrats (SPD), ecologist Greens and neoliberal Free Democrats (FDP), whose color is yellow. The government known as "Ampel" (traffic light) in Germany, started out as a self-declared "Fortschrittskoalition" (progress coalition) but got mired in infighting and became the least popular government ever.
Image: Michael Kappeler/dpa/picture alliance
CDU/CSU-SPD (2013-2021)
After taking more than 40% of the vote, Chancellor Angela Merkel's conservatives probably weren't expecting to rule with the SPD. However, her old allies, the FDP failed to meet the 5% threshold to enter the Bundestag, and options were limited. Merkel called on the SPD to join her and "take on the responsibility to build a stable government." She made the same speech again four years later.
Image: Maurizio Gambarini/dpa/picture alliance
CDU/CSU-FDP (2009-2013)
The SPD, part of the outgoing coalition, picked up a disappointing 23% in the 2009 federal election. The Free Democrats, by contrast, won more than 14% of the vote. Chancellor Angela Merkel (center) and the FDP's Guido Westerwelle (left) formed a coalition with relative ease. It was, after all, Germany's 11th CDU/CSU-FDP government.
Image: Markus Schreiber/AP Photo/picture alliance
CDU/CSU-SPD (2005-2009)
"Grand coalitions" do not come easily. When the first exit polls came in, both Gerhard Schröder (left) and Angela Merkel (right) declared themselves the winner. In the end, Merkel's conservatives defeated the SPD by just 1%. Germany's two largest parties agreed to form the country's second-ever grand coalition, and Schröder left politics.
Image: Stefan Sauer/dpa/picture alliance
SPD-Green Party (1998-2005 )
In 1998, the CDU/CSU lost a general election and SPD candidate Gerhard Schröder (left) became chancellor, heading a center-left government with the Green Party. Joschka Fischer of the Greens took over the Foreign Ministry.
Image: Andreas Altwein/dpa/picture-alliance
CDU-DSU-Democratic Awakening (1990)
Shortly after the fall of the Berlin Wall, East Germany held its first free election. The Christian Democrats under Lothar de Maiziere took over 40% of the vote. They went into coalition with two small parties: German Social Union and Democratic Awakening, whose members included one Angela Merkel. In October that year, the government signed the reunification treaty with West Germany.
Image: Wolfgang Kumm/dpa/picture alliance
CDU/CSU-FDP (1982-1998)
The friendship between the SPD and FDP ended as the two parties' differing ideologies became irreconcilable in the early 1980s. The liberals again switched sides, seeking a deal with the conservatives. They formed a new CDU/CSU-FDP coalition under the leadership of Helmut Kohl (pictured), who remained chancellor for 16 years until well after German reunification.
SPD-FDP (1969-1982)
Willy Brandt (left) became Germany's first Social Democratic chancellor in the postwar period. The CDU/CSU was the strongest party, but Brandt struck a deal with the FDP to secure a narrow majority in the Bundestag. This wouldn't be the last time the FDP would be called out for a lack of loyalty. In 1974, Brandt was replaced by Helmut Schmidt (right), who went on to win two more elections.
Image: Sammy Minkoff/picture alliance
CDU/CSU - SPD (1966-1969)
The first-ever "grand coalition" was not the product of an election. Ludwig Erhard was re-elected in 1965 and continued to rule alongside the FDP who left the government in the following year over budget disputes. Erhard also resigned and Kurt Kiesinger (center) was chosen to take over. With the FDP out, he governed with the center-left Social Democrats, led by Willy Brandt.
Image: UPI/dpa/picture-alliance
CDU/CSU-FDP (1961-1966)
After four years of ruling West Germany on their own between 1957 and 1961, the conservatives lost their majority in the Bundestag and were forced to enter into coalition with the Free Democrats again. Adenauer resigned in 1963 for his part in the so-called "Spiegel" scandal. His economic affairs minister, Ludwig Erhard (left), was elected by parliament to take over.
Image: Alfred Hennig/dpa/picture-alliance
CDU/CSU-FDP-DP (1949-1961)
The first democratic government to govern West Germany since the end of World War II saw Christian Democratic Union leader Konrad Adenauer form a governing coalition with the Free Democrats and the German Party (a now-defunct national conservative party). It had a very slim majority. Small coalition partners fell by the wayside, eventually leaving the CDU/CSU to govern alone.
Image: - /dpa/picture alliance
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Loose ends also still need tying up on foreign, defense, developmental and financial policy.
Officials from the CDU/CSU and the SPD had hoped to conclude the negotiations by Sunday evening, but set aside an additional two-day buffer to reach a deal.
Despite their differences, The deputy leader of Merkel's Christian Democrats (CDU), Julia Klöckner, told reporters on Monday evening she assumed "we will be ready tomorrow night on Tuesday into Wednesday."
Should the talks reach a successful conclusion, the SPD's 450,000 registered members will then get the opportunity to vote on the agreed draft coalition deal. The public is expected to have to wait around three weeks for the vote to yield a result.
Should it pass, a new federal government would be expected to be formed by around Easter.
Key points agreed so far:
An annual limit of between 180,000 to 220,000 migrants allowed to settle in Germany
More money for clinics and doctors in rural areas
More financial aid for families with children
The creation of 15,000 new police jobs split between the federal government and the 16 states
A €4 billion ($4.97 billion) investment into social and private housing construction, with the goal of building 1.5 million new homes by 2021
A €10 billion investment into high-speed broadband expansion, with the right to fast internet enshrined in law by 2025.