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| Germany Faces Prolonged Uncertainty After Coalition Talks Fail | Germany Faces Prolonged Uncertainty After Coalition Talks Fail |
| (35 minutes later) | |
| BERLIN — Germany, an anchor of stability in Europe, faced a political crisis on Monday after late-night negotiations to form a governing coalition collapsed. | BERLIN — Germany, an anchor of stability in Europe, faced a political crisis on Monday after late-night negotiations to form a governing coalition collapsed. |
| The breakdown of the talks on Sunday night reverberated across the European continent and raised new doubts about the political longevity of Chancellor Angela Merkel of Germany, considered perhaps the West’s most ardent defender of democratic values and freedoms. | The breakdown of the talks on Sunday night reverberated across the European continent and raised new doubts about the political longevity of Chancellor Angela Merkel of Germany, considered perhaps the West’s most ardent defender of democratic values and freedoms. |
| “There is no coalition of the willing to form a government,” said Thomas Kleine-Brockhoff, director of the Berlin office of the German Marshall Fund. “This is uncharted territory since 1949. We’re facing a protracted period of political immobility. Not only is this not going to go away soon, there is no clear path out.” | “There is no coalition of the willing to form a government,” said Thomas Kleine-Brockhoff, director of the Berlin office of the German Marshall Fund. “This is uncharted territory since 1949. We’re facing a protracted period of political immobility. Not only is this not going to go away soon, there is no clear path out.” |
| The breakdown of the talks came against the backdrop of other forces of instability that have been rattling Europe recently, including Britain’s exit from the European Union and a Catalonia secession crisis in Spain. | The breakdown of the talks came against the backdrop of other forces of instability that have been rattling Europe recently, including Britain’s exit from the European Union and a Catalonia secession crisis in Spain. |
| Now Germany, Europe’s political and economic bedrock, has added to the sense of uncertainty. | Now Germany, Europe’s political and economic bedrock, has added to the sense of uncertainty. |
| Ms. Merkel met in private on Monday with President Frank-Walter Steinmeier, who, as head of state, is charged with trying to break the deadlock in coalition talks. He could also appoint a chancellor to lead a minority government. If those actions fail, a new round of elections could also be called. | Ms. Merkel met in private on Monday with President Frank-Walter Steinmeier, who, as head of state, is charged with trying to break the deadlock in coalition talks. He could also appoint a chancellor to lead a minority government. If those actions fail, a new round of elections could also be called. |
| The potential for instability in Germany would be a major blow to the European Union. Ms. Merkel has been the region’s dominant political figure of the past decade. Her leadership is credited with helping to guide the bloc through the 2008 financial crisis and, more recently, with providing a powerful countervoice to populists across the Continent and beyond. | The potential for instability in Germany would be a major blow to the European Union. Ms. Merkel has been the region’s dominant political figure of the past decade. Her leadership is credited with helping to guide the bloc through the 2008 financial crisis and, more recently, with providing a powerful countervoice to populists across the Continent and beyond. |
| Financial markets reacted calmly to the turmoil in Berlin, calculating that the German economy could power through the uncertainty. After opening lower, the DAX index of major stocks closed the day higher. The euro fell slightly. | Financial markets reacted calmly to the turmoil in Berlin, calculating that the German economy could power through the uncertainty. After opening lower, the DAX index of major stocks closed the day higher. The euro fell slightly. |
| But some economists warned that the longer term effects could be more severe. A weak government might be unable to agree on needed improvements to infrastructure and the education system, for example. | But some economists warned that the longer term effects could be more severe. A weak government might be unable to agree on needed improvements to infrastructure and the education system, for example. |
| “The economic situation is very good,” Christoph M. Schmidt, chairman of the German Council of Economic Experts, said in a statement. “But over the mid and long term there are big challenges, especially the demographic shift, digitalization, sensible development of the European Union, and climate change.” | “The economic situation is very good,” Christoph M. Schmidt, chairman of the German Council of Economic Experts, said in a statement. “But over the mid and long term there are big challenges, especially the demographic shift, digitalization, sensible development of the European Union, and climate change.” |
| The political instability stems from the elections in Germany on Sept. 24, when Ms. Merkel’s Christian Democrats finished first. But their share of the overall vote dropped significantly, while the far-right Alternative for Germany party scored a record vote, entering Parliament for the first time as the third-biggest grouping. | The political instability stems from the elections in Germany on Sept. 24, when Ms. Merkel’s Christian Democrats finished first. But their share of the overall vote dropped significantly, while the far-right Alternative for Germany party scored a record vote, entering Parliament for the first time as the third-biggest grouping. |
| Even so, political analysts had expected Ms. Merkel to form a new coalition government that would have allowed her to remain as chancellor. That may still happen, but it will be harder now, and it is unlikely to happen soon, experts say. | Even so, political analysts had expected Ms. Merkel to form a new coalition government that would have allowed her to remain as chancellor. That may still happen, but it will be harder now, and it is unlikely to happen soon, experts say. |
| “Building a government is always a difficult process,” Mr. Steinmeier said on Monday, reminding lawmakers of their duty to serve the people who voted them into office. “I expect from all a readiness to talk to make agreeing a government possible in the near future,” he added. | |
| Elsewhere in Europe, the possibility of a weakened Ms. Merkel and of an inward-looking Germany alarmed some leaders. The chancellor canceled a meeting in Berlin with Prime Minister Mark Rutte of the Netherlands. In Paris, President Emmanuel Macron of France said that Ms. Merkel’s difficulties were a serious hurdle to the partnership between their two countries. | Elsewhere in Europe, the possibility of a weakened Ms. Merkel and of an inward-looking Germany alarmed some leaders. The chancellor canceled a meeting in Berlin with Prime Minister Mark Rutte of the Netherlands. In Paris, President Emmanuel Macron of France said that Ms. Merkel’s difficulties were a serious hurdle to the partnership between their two countries. |
| France has “no interest in a worsening of the situation” in Germany, Mr. Macron said in a statement on Monday. “Our wish is that our main partner, for the sake of Germany and Europe, remains strong and stable, so that we can move forward together,” he added. | France has “no interest in a worsening of the situation” in Germany, Mr. Macron said in a statement on Monday. “Our wish is that our main partner, for the sake of Germany and Europe, remains strong and stable, so that we can move forward together,” he added. |
| Even if Ms. Merkel’s problems leave Mr. Macron as Europe’s de facto strongest leader — with weak domestic opposition in France, a strengthening economy, and a good record so far on driving through economic overhauls — the French president had been counting on Ms. Merkel as an ally in his push to make changes to the European Union. | Even if Ms. Merkel’s problems leave Mr. Macron as Europe’s de facto strongest leader — with weak domestic opposition in France, a strengthening economy, and a good record so far on driving through economic overhauls — the French president had been counting on Ms. Merkel as an ally in his push to make changes to the European Union. |
| Mr. Macron will be aware that his agenda for the bloc, which includes a common defense force, a strengthened euro, and a joint finance minister, stands no chance without German backing. He already seemed to have established a strong rapport with Ms. Merkel. The leaders have met frequently since Mr. Macron’s election; for the past six months, the French news media has been full of images of the two of them smiling side by side. | Mr. Macron will be aware that his agenda for the bloc, which includes a common defense force, a strengthened euro, and a joint finance minister, stands no chance without German backing. He already seemed to have established a strong rapport with Ms. Merkel. The leaders have met frequently since Mr. Macron’s election; for the past six months, the French news media has been full of images of the two of them smiling side by side. |
| Ms. Merkel had originally set Friday as the deadline for reaching an agreement with the Free Democrats, the Greens, and the Christian Social Union, which forms a conservative bloc with the chancellor’s Christian Democrats. From the outset, all of those parties had differed markedly on key issues, notably migration and climate policies, resulting in strained talks that led to open sniping between some participants. | Ms. Merkel had originally set Friday as the deadline for reaching an agreement with the Free Democrats, the Greens, and the Christian Social Union, which forms a conservative bloc with the chancellor’s Christian Democrats. From the outset, all of those parties had differed markedly on key issues, notably migration and climate policies, resulting in strained talks that led to open sniping between some participants. |
| After they agreed to take talks into overtime, negotiators and party leaders failed to produce any breakthroughs over the weekend, and the Free Democrats quit the talks. | After they agreed to take talks into overtime, negotiators and party leaders failed to produce any breakthroughs over the weekend, and the Free Democrats quit the talks. |
| Ms. Merkel could try to approach the Social Democrats about forming a coalition. But the center-left party has served as the junior coalition partner to the Christian Democrats since 2013 and on Monday, the party’s leader, Martin Schulz, said his group had no interest in another round. | Ms. Merkel could try to approach the Social Democrats about forming a coalition. But the center-left party has served as the junior coalition partner to the Christian Democrats since 2013 and on Monday, the party’s leader, Martin Schulz, said his group had no interest in another round. |
| Should Mr. Steinmeier decide to nominate a chancellor, it would most likely be Ms. Merkel, given that her party has the largest bloc in Parliament. She would then need to be confirmed by lawmakers, but would be left with a minority government. But such a constellation would require she continually seek alliances with other partners, robbing Germans of the governmental stability they have known since the end of World War II. | |
| Despite the difficulties presented by the possible solutions, experts said calling a snap election would be a last resort. | Despite the difficulties presented by the possible solutions, experts said calling a snap election would be a last resort. |