Germany prepares for the third Grand Coalition. After a marathon of more than twenty-one hours and almost four months after the elections, Angela Merkel's Christian Democrats, the CSU and the SPD finally seem to have managed to find an agreement that will allow for the formation of a new government.
A press conference should be held shortly in which the official announcement will be made, but in the meantime the comment by Martin Schulz: "We reached an outstanding result“said the leader of the Social Democratic party pointing out the results achieved "for a government contract" on the welfare state, with the increase in aid to families, investments in the training system. “We have reached unanimity with our SPD negotiators”.
Thus ends the political uncertainty which has characterized the last three months, a period during which the specter of new elections has repeatedly emerged. After difficult weeks, the Chancellor can therefore breathe a sigh of relief.
The so-called "coalition contract” will be drafted next week. The new common government program will be contained within it. However, the definitive agreement depends on the assent of the conservatives and social democrats.
In the coming days will be held the SPD congress. Immediately afterwards, Martin Schulz's party will carry out an internal referendum aimed at asking the members of his party to approve the agreement, the outcome of which, however, is not obvious. In fact, only a few days ago, the Youth of the SPD had announced their intention to give battle to the congress.
One point of the agreement should concern health insurance. In this context, Berlin is preparing to return to the system whereby insurance contributions regarding medical treatment will be shared equally between employer and employee.
In foreign policy, the parties would instead have agreed on the desire to change the Save ESM States fund, transforming it into a European monetary fund subject to parliamentary control, pledging to increase the German contribution to the European budget.
The leaders of the Union parties (CDU-CSU) and SPD have agreed to overcome the obstacles that for weeks have been blocking the negotiations for a new edition of the Grosse-Koalition: taxes and migrants. On the first issue, it was decided not to increase the maximum tax rate, as instead requested by the SPD, while on the second, it is expected to allow family reunification of migrants at the rate of 1000 people a month.
The agreement will give life to the fourth consecutive government led by Angela Merkel who thus obtains the umpteenth victory of her career as Chancellor.
On the markets, while the Frankfurt Stock Exchange does not react (+0,1%) the euro leaps to its highest level in three years, exceeding 1,21 after the news of the agreement on the broad coalition in Germany. On the front of rates, the German ten-year contract fluctuates around parity, confirming a yield that is now very close to 0,60%.
