24 Sep 2013

Merkel ponders coalition make-up

3:32 pm on 24 September 2013

Chancellor Angela Merkel is considering who to form a new coalition with after her election victory in Germany.

The Christian Democrats Union won 41.5% on Sunday; their best result since 1994 but just short of a clear majority.

The Free Democrats failed to get any seats. The BBC reports a coalition with the Social Democrats is seen as most likely but only after hard bargaining.

Mrs Merkel told a news conference on Monday that she had already contacted SPD chairman Sigmar Gabriel.

"We are, of course, open for talks", she said, adding that Mr Gabriel had told her the SPD must first hold a meeting of its leaders on Friday.

The SPD came second, with almost 25.7%. In 2005-2009 they were in a "grand" coalition with the CDU but correspondents say the experience has made them wary about doing so again.

The SPD has criticised Mrs Merkel's economic austerity drive. SPD leader Peer Steinbrueck was finance minister in the previous grand coalition but has said he would not serve in such a government again.

At the news conference on Monday, Mrs Merkel also said "our European policy course will not change".

She said Germany's labour market reforms in the past decade were a model for other European countries.

The BBC reports Mrs Merkel's election victory is seen as proof that many Germans like her insistence on austerity and budget discipline for heavily indebted countries such as Greece.