Germans went to the polls in a general election on Sunday and delivered a third successive mandate to Chancellor Angela Merkel.
Her Conservative party was almost given the first absolute mandate since World War I, but their total share of the vote came in slightly short at 41.5%. However, Ms Merkel’s preferred coalition partner, the FDP (Free Liberal Democrats) were wiped out as a political force in parliament, falling below the 5% mark required to earn representation; they polled 4.8%. The FDP have been a feature of German politics since World War II and this will be the first time that they have not been represented in parliament. The former communist party (die Linke) and the Green Party both passed the 5% threshold, polling 8.6 and 8.4% respectively.
It is thought likely that Ms Merkel will seek to form a “Grand Coalition” by inviting the support of the Social Democrats (SPD) who garnered 26% of the popular vote. However, their leader, Peer Steinbrueck has indicated that he would not join such a collation. Mr Steinbrueck served as finance minister during the Grand Coalition which governed Germany during Ms Merkel’s first term from 2005-09. It is likely that the business of forming a coalition and so securing a majority in parliament could take several weeks. Most analyst expect the SDP to agree to a coalition eventually. The SDP and other opposition parties appear unable to be able to form a government since they would not work with die Linke and therefore will be unable to muster sufficient support.
The consensus view is that Germany’s economic policies will continue unchanged, but there may be some softening of the German position with respect to Austerity within the Eurozone.