CONTENT PREVIEW
Country Risk

Failure to form new German coalition government heightens risk of protracted political stalemate and early general election

20 November 2017

Event

On the night of 19/20 November, efforts failed to form a new coalition government composed of Chancellor Angela Merkel’s centre-right Christian Democratic Union (Christlich Demokratische Union Deutschlands: CDU) and its Bavarian regional affiliate, the Christian Social Union (Christlich-Soziale Union: CSU), the liberal Free Democratic Party (Freie Demokratische Partei: FDP), and the Greens (Die Grünen).

Following four weeks of preliminary negotiations, divisions over issues such as migration, energy policy, and taxation hampered agreement and FDP-leader Christian Lindner announced that his party would not be able to join the envisaged alliance.

Forecast

The collapse of talks weakens Merkel’s leadership and increases the risk of a protracted political stalemate hindering effective policy-making in the coming months.



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