Germany’s SPD, Greens, FDP reach initial deal to form new government

The three parties have outlined plans for Europe’s biggest economy in an initial coalition agreement, touching on issues such as minimum wage, taxes and climate protection.

(L-R) Co-leader of Germany's Greens (Die Gruenen) Annalena Baerbock, German finance minister, vice chancellor and the Social Democratic SPD Party's candidate for chancellor Olaf Scholz and leader of Germany's free democratic FDP party Christian Lindner prepare to leave after giving a statement following a session of exploratory talks between leading members of the social democratic SPD party, the Greens and the free democratic FDP party on October 15, 2021 in Berlin.
AFP

(L-R) Co-leader of Germany's Greens (Die Gruenen) Annalena Baerbock, German finance minister, vice chancellor and the Social Democratic SPD Party's candidate for chancellor Olaf Scholz and leader of Germany's free democratic FDP party Christian Lindner prepare to leave after giving a statement following a session of exploratory talks between leading members of the social democratic SPD party, the Greens and the free democratic FDP party on October 15, 2021 in Berlin.

German Finance Minister Olaf Scholz has taken a step closer to succeeding Angela Merkel as chancellor, as his Social Democrats, the ecologist Greens and liberal FDP announced a preliminary deal to form a new government.

The three parties have been holding talks since Scholz's centre-left Social Democratic Party (SPD) won the general elections on September 26 with Merkel's conservatives in second place as she prepares to leave politics.

READ MORE: Social Democrats narrowly win German vote, seek to replace Merkel's bloc

'New beginning'

"Overall, we can sense here that a new beginning is possible, brought about by the three parties that have come together here," Scholz told reporters.

"We have agreed on a text from the exploratory talks," he said, adding that this "is a very good result that clearly shows that a government that aims to ensure we achieve progress can be formed in Germany."

Greens co-leader Annalena Baerbock said the initial agreement heralds a "coalition of progress" to "really use the next decade as a decade of renewal".

The agreement that will form the basis of formal coalition talks all but means that Merkel's CDU-CSU alliance is headed for the opposition benches after scoring their worst post-war election result.

CDU leader and chancellor hopeful Armin Laschet had recently said his party remains open to forming a governing coalition, but even his own job is hanging on a thread.

Facing their worst crisis in decades, the conservatives are planning a clean sweep of their leadership, with a congress by December to elect their new bosses.

READ MORE: Migrant candidates seek to reverse divisive trends in German politics

Scholz, who is also Merkel's vice chancellor, this week voiced confidence that the three-way talks involving his party will produce Germany's next government before Christmas.

A coalition of SPD, Greens and FDP – known as "traffic-light" after the three parties' red, green and yellow colours – has found favour with Germans, with 62 percent approving the constellation as the next federal government, according to a poll published on Friday.

Scholz's approval rating was even higher, as three in four say it was "good" for him to become chancellor. 

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