Angela Merkel Pays a Steep Price To Stay in Power
Bloomberg Businessweek|February 19, 2018

The German chancellor has a coalition deal, but it comes at a steep cost

Patrick Donahue, Arne Delfs, and Rainer Buergin
Angela Merkel Pays a Steep Price To Stay in Power

Angela Merkel once claimed she had bested Vladimir Putin during their first meeting in the Kremlin, employing what she said was an old KGB technique: staring at the Russian leader in silence for several long minutes. As the sun rose over a frigid Berlin on Feb. 7, the German chancellor’s rivals from the Social Democratic Party (SPD) used the same tactic. This time, Merkel blinked.

Merkel and her team had spent the previous day and night at the headquarters of her Christian Democratic Union (CDU) locked in tense negotiations with the SPD leadership. The SPD had issued an ultimatum that broke with long-standing protocol of German coalition- building: Off the bat, they demanded three key posts, including the finance and foreign ministries, power centers from which the SPD planned to set the government’s agenda, especially on Europe.

An earlier attempt at an alliance with the Greens and the Free Democrats had failed. A second collapse in talks, more than four months after the September election, threatened to sweep out the governing elite, including the chancellor who has dominated German politics for 12 years.

As delegates were summoned back to the CDU building, they could barely believe what Merkel and her party’s Bavarian sister group, the Christian Social Union (CSU), had negotiated. With so much at stake, she surrendered the portfolios for finance, foreign affairs, and labor to the Social Democrats (though the deal still needs to be approved by the SPD’s 464,000 members). CDU lawmaker Olav Gutting captured the mood with gallows humor. “Puuuh! At least we kept the Chancellery!” he tweeted on Wednesday. On Sunday, Merkel took to the airwaves to explain her position. “It was a painful decision,” she told the ZDF television network. “But what was the alternative?”

This story is from the February 19, 2018 edition of Bloomberg Businessweek.

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This story is from the February 19, 2018 edition of Bloomberg Businessweek.

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