Germany edges closer to three-way coalition led by Social Democrats

Berlin (dpa) – Germany’s Social Democrats and two smaller parties – the Greens and the business-friendly FDP – agreed to launch formal talks to forge a left-leaning government after last month’s election led to a reordering of the country’s political landscape.

“We are convinced that we can conclude an ambitious and viable coalition agreement,” a joint paper issued after a final exploratory round on Friday said.

It came almost three weeks after the September 26 elections saw a sharp fall in support for outgoing Chancellor Angela Merkel’s conservative alliance.

Her bloc came second to the centre-left Social Democrats (SPD), which put forward Finance Minister Olaf Scholz as their candidate for chancellor, in a remarkable turnaround for a party that had been all but written off.

“The exploratory talks were characterized by trust, respect and mutual consideration. We aim to continue with this,” the paper said.

The Greens are to hold a party conference in reduced format that could meet this weekend. The FDP negotiators will go back to party executive bodies before proceeding.

Among the points agreed thus far are that the new coalition led by the Social Democrats would seek to accelerate phasing out coal to generate electricity, ideally by 2030, against the current target of 2038.

“That demands the massive expansion of renewables and the construction of modern gas-fired power stations in order to cover the electricity and energy demand at competitive prices over the years ahead,” the paper said.

The three parties said they aimed to reduce electricity costs to German consumers who currently pay among the highest prices in Europe.

In a clear victory for the FDP and defeat for the Greens, the parties agreed that no overall speed limit would be imposed on German motorways.

“We aim to turn Germany into the leading market for electrical mobility and massively accelerate the expansion of charge points. There will be no general speed limit,” the paper said.

Greens co-leader Robert Habeck said the joint paper had aimed at clarity. “We were unable to push through the speed limit. We are very satisfied with the other points,” he said.

Whereas the exploratory talks are about sounding out common ground and differences without any commitment, substantive talks will signal the start of a process with a clear intention of forming a viable coalition.

If they succeed, this will result in the first three-way coalition at federal level since the 1950s.

The SPD leader and candidate for the chancellorship, Olaf Scholz, indicated recently while in Washington that he believed the so-called “Traffic Light” coalition, named for the parties’ colours, could be up and running soon.

The exploratory talks had taken place in a “very, very good and constructive atmosphere,” he said. German leaders have been at pains to counter speculation the process could drag on, after the coalition formation following the 2017 elections took six months.

The outcome of the September 26 elections handed considerable power to the two smaller parties. The Greens secured 14.8 per cent and the FDP 11.5 per cent, according to preliminary results.

Together they are to have 210 seats in the new Bundestag, outnumbering the SPD, which will have 206 based on the 25.7 per cent it scored in the election.

The official results are to be published on Friday but are not expected to deviate from the preliminary figures.