Friday 18 October 2013

German Coalition talks to turn formal

In the latest step in snail-paced negotiations to form a 'grand coalition' government in Germany, the Social Democrats (SPD) have said they want "formal talks" with Chancellor Angela Merkel's party if the move is approved in a party vote scheduled for Sunday.

Sigmar Gabriel, Chairman of the centre-left SPD, said on Thursday that his party's senior leaders were unanimous in supporting coalition talks with Merkel's Christian Democratic Union (CDU) nearly a month after the September 22nd general elections. Approximately 200 SPD members will vote on Sunday whether to start "formal talks" with the CDU. 

If the move is approved by the party, talks would begin on Wednesday to agree on coalition policies and the sharing of cabinet posts. 

"We are convinced that we can find sensible solutions for both sides, and most of all for the country, even on disputed questions," Gabriel said. 

A central demand for the SPD has been the implementation of an €8.50-per-hour minimum wage. Yet, German think tanks warned on Thursday against such a move. In a report announcing reduced growth forecasts for the Eurozone's largest economy, four institutes noted that "a blanket minimum wage that applies to all sectors and all regions would probably have significantly more negative consequences for the labour market than the current sectoral deals". 

However, Gabriel reiterated the need to implement this proposal for there to be a deal. "A general minimum wage of €8.50 is a central demand without which a grand coalition with the SPD wouldn't make any sense," the the chairman said. 

CDU General Secretary Hermann Gröhe appeared to give up some ground, saying that both sides "have a common aim of a sensible minimum wage arrangement". 

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