German Crisis Averted? SPD Ready To Negotiate With Merkel To End Political Deadlock

The Euro has jumped to a six week high following the latest record high print in the German IFO Business Climate index, which rose from 116.7 to 117.5 (exp. 116.6), but mostly as a result of what appears to be a breakthrough in the German political deadlock that some likened to "Merkel's Brexit moment", after Germany’s biggest opposition party, the Social Democrats, on Friday morning announced a reversal in their political strategy and said they are open to talks on backing a government led by Chancellor Angela Merkel, offering a way to break the Berlin deadlock and restore political stability to Europe’s biggest economy.

As the FT reports, the decision, announced after an eight-hour meeting of SPD leaders in party headquarters in Berlin wrapped up in the early hours of Friday, marks a U-turn for the centre-left party, which had vowed since September’s indecisive general election not to rejoin Ms Merkel’s centre-right bloc in a “grand coalition”.

Commenting on the latest political development, UBS economist Paul Donovan said that "the German SPD are discussing the possibility of some kind of support for the CDU, following talks with the German president. The German political crisis is not really looking very crisis-like. It is all very orderly and, frankly, a little dull."

Social Democrat Secretary General Hubertus Heil told reporters that the party is ready to start discussions if that’s the course that President Frank-Walter Steinmeier, who is trying to broker a deal, decides upon. Heil spoke after an eight-hour meeting of the SPD leadership in Berlin.  “The SPD is firmly convinced that talks are needed,” Heil was quoted as saying by Deutsche Presse-Agentur newswire. “The SPD won’t reject such talks.”

More than two months after an inconclusive election that brought a far-right party into parliament and was the CDU's worst showing since World War II, Merkel is still trying to work out how she can govern after her effort to forge a deal with three smaller parties fell apart on Sunday. Still, while Merkel remains skeptical about ruling without a parliamentary majority and the SPD leader Martin Schulz wants to avoid a formal coalition, the two sides are inching closer as they try to bring stability to the country.

Over the past few days, pressure has risen on Schulz to reverse his stance since the smaller free-market Free Democratic Party withdrew from coalition talks last week, plunging Germany into a rare bout of political uncertainty, as a repeat German vote is seen as the worst-case political outcome. As Bloomberg notes, "Schulz is facing calls by SPD lawmakers and state leaders to drop his refusal to join a Merkel coalition. Schulz favors pledging SPD support for a minority government, an arrangement Merkel wants to avoid. That arrangement might involve an SPD pledge to support Merkel on legislation on a case-by-case basis without joining her administration."

Seeking to reciprocate, and sensing the change in the political climate, senior members of Merkel’s party have doubled their efforts to bring the SPD back into the fold. Volker Kauder, head of the CDU-CSU group in parliament, told Germany’s Südwest Presse on Thursday that he would be happy “if the current partners in government found each other once again”. Mr Kauder pointed to the “special responsibility” of the country’s two biggest establishment parties.

Seeking to tame hopes that an SPD coalition is now a done deal, Manuela Schwesig, the Social Democrat prime minister of the eastern state of Mecklenburg-Western Pomerania, said on ZDF television that “for us it’s clear that if there are talks, then we will also take part in these talks, but added that "just because we’re saying that we’re open to talks, it’s not automatically a discussion about a grand coalition, and certainly not a vote for a grand coalition.”  She also stated that some in the SPD are asking “aren’t there alternatives to the automatic grand coalition or to new elections, are there alternatives in between?” Different things are under discussion and we’re saying that we have to talk about these different things now."

Furthermore, whatever the SPD decides, it will likely require the approval of members, Heiko Maas of the party leadership committee told ZDF television late Thursday. The SPD is holding a party congress in Berlin from Dec. 7 to Dec. 9, when Schulz will be up for re-election as chairman, and his political career is suddenly in doubt. Having led the SPD to its worst result since World War II in September, Schulz is under pressure from within his party to step aside, a move that might help clear the way for a grand coalition. Heil sought to quell the speculation on Thursday, saying “personnel matters” aren’t on the agenda for now.

On Thursday, Schulz met with German President Steinmeier as Germany’s head of state, a former SPD foreign minister, tries to secure a stable government. Steinmeier has made clear he wants to avoid new elections, and has urged party leaders on all sides to show flexibility and readiness to compromise.

Meanwhile, as they prepare to engage with Merkel, the Social Democrats are split between those on the left who see the two coalitions with Merkel as the main reason for the slump in its support and those who spy a chance to push through policies such as expanded health care and reaching out to French President Emmanuel Macron to strengthen the euro area, according to a Bloomberg wrap. Many in the SPD would prefer to stay out of government to prevent the far-right Alternative for Germany, which entered parliament for the first time with 12.6 percent of the vote in September, from becoming the biggest opposition force.

For now, the market is giving the latest developments the benfit of the doubt, and has sent the EURUSD up as much as 0.2% to 1.1875, its strongest level since Oct. 13; the pair climbs a fourth day, with the euro set for its best yearly performance since 2003.


css1971 Fri, 11/24/2017 - 05:25 Permalink

Pols like to think the world will end without their constant shepherding, tweaking and direction... No. We'll all get on just fine without you.

HenryKissinger… junction Fri, 11/24/2017 - 05:42 Permalink

ALL acording to plan...nothing to see here, it is just a plan to turn europe into a future race of mongrel (((bolshevik)))-worshippers... check also:-KALERGI plan (miscegenation into low IQ brown mongrels) / also Hooton plan-George Soros leaks on the Merkel plan Merkel Plan Compassion and Control…-Kalergi/ Charlemagne Prize BEARERS list professional rapefugee smuggler operation… divörsity™ Lerner Spectre"I think there is a resurgence of anti-Semitism because at this point in time Europe has not yet learned how to be multicultural. And I think we are going to be part of the throes of that transformation, which must take place. Europe is not going to be the monolithic societies they once were in the last century. Jews are going to be at the centre of that. It’s a huge transformation for Europe to make. They are now going into a multicultural mode and Jews will be resented because of our leading role. But without that leading role and without that transformation, Europe will not survive." ~ Barbara Lerner Spectre…"Instead of destroying European Jewry, Europe, against its own will, refined and educated this people into a future leader-nation through this artificial selection process. No wonder that this people, that escaped Ghetto-Prison, developed into a spiritual nobility of Europe. Therefore a gracious Providence provided Europe with a new race of nobility by the Grace of Spirit...The man of the future will be a mongrel.  Today’s races and classes will gradually disappear owing to the vanishing of space, time, and prejudice. The Eurasian–Negroid race of the future, similar in its outward appearance to the Ancient Egyptians, will replace the diversity of peoples with a diversity of individuals."Practical Idealism - by Richard von Coudenhove-Kalergi… Must Perish: A Plan For Permanent Peace Among Civilized Nations"I believe that the Jews have a mission in life. They must see to it that the nations of the world get together in one vast federation. "Union Now" is the beginning of this. Slowly but surely the world will develop into a paradise. We will have perpetual peace. And the Jews will do the most to bring about this confederation, because they have the most to gain" Theodore Newman Kaufman…"it does not get any better than this" ...

In reply to by junction

Gaius Frakkin'… HenryKissinger… Fri, 11/24/2017 - 08:25 Permalink

Germany has longterm political issues just like every other Western country.It will need to confront its past before it will ever have a true nationalist party. If it doesn't, it will continue to be overrun by the world's trash, exerting increasing political pressure on the self-hating White left.This is a confrontation bound to happen regardless of external politics. It is inevitable.

In reply to by HenryKissinger…

cat-foodcafe css1971 Fri, 11/24/2017 - 10:57 Permalink

The joke in the govt agency where I used to work was hoping the top brass would all go on vacation so we could actually get something done.  You have NO IDEA of the useless bullshit the top whores generate, which always goes no where fast. We would all be better off if they were buried out in the sand in the desert near Las Vegas.

In reply to by css1971

SpanishGoop Fri, 11/24/2017 - 05:41 Permalink

"Ms Merkel’s Christian Democratic Union, its Bavarian ally the Christian Social Union (CSU), and the Social Democrats (SPD) all recorded some of their worst results." Two big losers going to govern together dont make a right. 

hooligan2009 Fri, 11/24/2017 - 05:46 Permalink

germans can have any outcome they want, as long as it conforms to libtard socialist policies that favor mass immigration at the expense of their jobs, health and security combined with, of course, no interest on their savings and higher taxes.what's not to like about the failed "populism" of the last four decades and the loss of sovereignty to europe and increasing subjection to sharia, no more beerfest, no more pork (sausages), more gential mutilation, a far lower common denominator for the national iq and increased terrorism.sehr gut.

BorraChoom Fri, 11/24/2017 - 05:48 Permalink

CIA officials predict that Germany will be ungovernable by around 2020At the current rate of mass Muslim migration, Germany likely will not fall by 2020, but by 2030, there could easily be a widespread Muslim occupation there, with the native population in a steep decline. By 2050 Germany will be a Islamic Dictatorship.

Sandmann Fri, 11/24/2017 - 05:52 Permalink

This is so very dangerous. SPD gets 20.5% voter support in September and in not one State election are they able to rule without coalition.Steinmeier, a failed SPD candidate for Chancellor in 2009 after 4 years in Merkel's Coalition 2005-2009 appointed President in Feb 2017 npow pressures his party friends to join with Merkel to stop any fresh elections which might benefit the AfD and FDP.So this is a Party "Democracy" where the big parties join in a Grand Coalition to thwart the Voters who have no chance to obstruct them and their plans such as extending the term to 5 years instead of 4. The Constitution is not safe with such a Coalition.This will create pre-revolutionary situation as things deteriorate just as in 1968 with Kiesinger's Grand Coalition.

BarkingCat Sandmann Fri, 11/24/2017 - 08:34 Permalink

The stupid German voters had the ability to obstruct those two parties. They simply had to vote for someone else. It's like a country of Forrest Gump's. Stupid is as stupid does. Actually it's more like a country of Sheldon's from Big Bang Theory. Brilliance scientifically and dumb and every other fucking way. I think I'll take Forrest Gump. Dumb as he was, common sense he did not lack.

In reply to by Sandmann

Fireman Fri, 11/24/2017 - 06:19 Permalink

Go on drag it out but even without Merkill at the head of the CDU this is still the same combo that Germans rejected in the election for having spawned the EUSSR'S Coudenhove Germanistan in the first place. Just one more muslim terrorist "event" coming up to Christmas and AfD will sweep to power as the country erupts. The hatred shown by the frothing aristocratic bullhorn media towards everything AfD is like a re-run from NAZI Germany days. They are truly scared of losing power like their Clintonite cousins in USSA. Jihadi Santa Claw$ is coming to town The ongoing stain of muslim crime spreading across Germanistan...with daily updates! "Practical Idealism" 1920   The Coudenhove Kalergi plan for a mongrel United Snakes Of Urupp aka (EUSSR) like its ailing brother USSA under the control of the Kazarian mutts Charlemagne Prize for those who serve the ZIONAZI World Order  "Count" Richard Coudenhove von Kalergi's genocidal screed "Practical Idealism" in PDF format (link below) is the original Austrian Globo NAZI whose Satanic tome makes Onkel Adolf's "Mein Kampf" look like a bedtime story.    

falak pema Fri, 11/24/2017 - 06:46 Permalink

In this period of geopolitical change of GLOBAL magnitude, we see the German political class now showing its ability to rise to the occasion, in a situation of 11th hour compromise to avoid the unthinkable.This is about keeping the European dream a reality, and it will take more fiscal drive at the expense of the FANG Oligarchs and tax havened money to be brought back into the REAL economy.What Merkel has tried to avoid in her selfish mercantilist rule for past 7 years, with "Nein, Nein, Nein" to Eurobonding and fiscal harmonization-- to feed a true consolidated market of 500 Million Europeans-- will now be put BACK ON THE TABLE.Mutti's tactical skills of staying in power have been eroded by her miscalculation of the growing dissatisfaction amongst German common folk, fed on two teats : increased wealth inequality and fears of uncontrollable immigration to create "community" type distortions in the German landscape-- as everywhere else in First WOrld-- resulting from these MENA permawars of Pax Americana; ALL FOR OIL, and its unending trail of destitute seeking survival --some of whom are bitten by the obscurantist disease spread by Wahhabism.Her strategic vision has been inexistant with her head buried in running the EU from behind the curtain of the Euro council to protect her own banks and export industry model--in the ongoing monetary frothing of a Casino global economy which has not resolved the CRISIS.And she is paying for that now; especially as under Brexit, the ball is now firmly in the hard core camp of the original SIX members of Euro group, of which the Franco-Germany axis is the SPINAL PIVOT.WIth Macron and Schulz on the SAME PAGE when it comes to creating a long term investment IMPULSE in EUrope BASED on FISCAL measures-- not MOAR monetary sterile games feeding Casino speculation and inequality worldwide-- the EUro project will have to show some TEETH to its strategic long term impulse on investment on THREE continents : Europe (especially the Eastern countries to bring them to par), Africa and ME to stop the human emigrants trail by feeding DIRECT INVESTMENT in these regions to replace RM SCAMMING which has been the MODUS OPERANDI of Pax Americana, of Rule neo-Britannia and of Françafrique-- with the help of these TRANSNATIONAL Behemoths like Glencore, Areva, Exxon and Oil/RM cartels. Last train to Gun Hill, Europe : You better get it right for your own future! C'mon Schulz, Macron and Mutti, JUST DO IT !Strike a decisive blow to make the Planet LIVABLE !

falak pema HenryKissinger… Fri, 11/24/2017 - 07:25 Permalink

You talk like the European leaders do not have FREE WILL !WTF ! Is your convoluted mind seeing an OVERLORD like a Pax Americana POTUS behind every country?You guys in the USA are now paying for your hegemonic five eyes snoop and shove down every man's throat the "for us or against us" mantra, now being torn to shreds by your own hubris of US Oligarchy's global games spawning its own Frankensteins.Europe has been out of that loop as lead players, but have had to buy their oil and eat the petrodollar shit for 50 years. History does have unintended consequences. There is NO OVERLORD in the Europroject; just 27 nations trying to find a peaceful basis for building a future. That should be obvious unless you believe that every nation is as demented as the US Oligarchy since neoliberalism created this financialized and permawar model.

In reply to by HenryKissinger…

HenryKissinger… falak pema Fri, 11/24/2017 - 07:42 Permalink

Merkel: there is plenty evidence Merkel received the Merkel plan from SOROS... and Soros is just another Rothschild minion. &…Micron: has his whole life been a Rothschild minionSchulz: has his whole life been a Soros minio and is in the OFFICIAL Soros minion list (page 51) Snowflake :  this is a fact.

In reply to by falak pema

falak pema HenryKissinger… Fri, 11/24/2017 - 07:43 Permalink

Haha! Ok you need a BOGEYMAN who is more powerful than FANG.As if the world is run by a Hungarian immigrant part of the Clintonista family.Wake up ! You don't understand how power works if you think Soros is Sauron !This ain't a medieval story about a fellowship of the Ring.Pax Americana is a MUCH BIGGER fish and it runs the current world. Why does anybody think ONE MAN can run the world?Haha!  John Birch et al. have spawned a lot of nutcrackers, who fly out of their Cuckoo's nest, I'll grant you that!

In reply to by HenryKissinger…

HenryKissinger… falak pema Fri, 11/24/2017 - 08:03 Permalink

twenty strawman fallacies in a row... why are you trying to lie?Rothschild is a family, (who happens to OWN england since the 19th century, and do PRINT MONEY), not one man Soros is not part of the Clinton arkancide gang, they are way way way smaller. He can buy Hillary in a minute.2- you think Soros is Sauron Soros is not Sauron, he has a boss, too. Like Cecil Rhodes did.3- Why does anybody think ONE MAN can run the world? It seems a handfull of families DO SO. e.g. 

In reply to by falak pema

falak pema HenryKissinger… Fri, 11/24/2017 - 09:13 Permalink

Cecil Rhodes lost ; things go much faster these days. I don't know why you think Soros is  more important than the whole US combine that has built a 200 T $  debt economy which is petrodollar centred and now gone fragile. Its that combine that is the problem; not a Hungarian who brought down the pound and also pioneered the invention of the HFed shadow banking economy.But he was just ONE Gordon Gekko; symbol of a bigger problem. 

In reply to by HenryKissinger…

falak pema css1971 Fri, 11/24/2017 - 07:51 Permalink

Currently its the US Oligarchy of Pax Americana, a huge integrated politico-bureaucracy built over 70 years, that decides that.But for how long? The Europeans have their own idea about how to share the wealth : its two pronged: social and liberal; but regulated to define the tradeoffs. "There isn't enough for everyone" is really a meaningless phrase until you define what enuff means ! Some want 1000 people to own 90% of the world's economic wealth... Thats the current model.And it will fall ! 

In reply to by css1971

BarkingCat Fri, 11/24/2017 - 08:23 Permalink

Oh big fucking deal. Stick a fork in these guys. They can join Merkel for the last hoorah because in the next elections replaced with the Muhammed party.

Posa BarkingCat Fri, 11/24/2017 - 09:48 Permalink

On that front the SPD will insist on allowing more refugees in and those in Germany to exercise chain immigration so that the whole village can move to Germany. They'll also double down on the green energy debacle. In short, they are Merkel's Merkel and only accelerate Germany's rapid disintegration. Most Germans still favor immigration and Energiewende, so few tears shed for them.

In reply to by BarkingCat

Publicus_Reanimated Fri, 11/24/2017 - 13:22 Permalink

They are all lying.  This is like the early 16th century.  The only thing Catholics and Reformers agreed on is all Unitarians must be killed.There is only one goal for CSU/CDU/SPD/FPD/Linke/Greens -- AfD must never be mainstreamed as the formal opposition.  This and only this is why the coalition talks ended.  Merkel et al have some trick up their sleeves that they believe will ensure CSU/CDU can comine with SPD without AfD finishing third.

pizdowitz Sat, 11/25/2017 - 00:21 Permalink

Roosevelt did one thing right: He divided Germany, by letting Stalin capture Berlin.

Pray that Germany remains a US fiefdom, and the cockroach infestation of Germany continues. Else the German-Russia alliance would be un-conquerable