No ‘Grand Coalition’ Yet for German Parties

By Patrick Brogan

 

Germany’s main political parties are still trying to reach an agreement after they failed to do so over the weekend. While many have said the obstacles are only small, other politicians feel there is still a long way to go before an agreement can be reached.

This comes four months after the German elections and highlights the difficult position Angela Merkel is in. Her party are going to have to make a series of concessions if they want to retain power after their worst election results in the post-war period. Many were critical of her stance on migration.

This will not soothe the fears in the markets. The Eurozone and indeed the EU face big challenges in the short and long-term. Unease is growing as Europe’s biggest economy still hasn’t reached an agreement on the future course of the country.

 

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