Germany: Social Democrats sign up to new Merkel-led German government - by Thomas Escritt, Michelle Martin

Germany’s Social Democrats (SPD) decisively backed another coalition with Chancellor Angela Merkel’s conservatives on Sunday, clearing the way for a new government in Europe’s largest economy after months of political uncertainty.

Two thirds of the membership voted“yes” to the deal in a ballot — a wider margin than many had expected. That means Merkel could be sworn in for a fourth term as early as the middle of the month, in a repeat of the grand coalition that has governed since 2013.

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Germany: German coalition talks reach breakthrough: A look at what comes next

The all-nighter appears to have focused minds: Germany's two biggest political parties — the Christian Democratic Union (CDU) and the Social Democratic Party (SPD) — announced on Friday morning that they had made a breakthrough in their exploratory talks, paving the way to formal coalition negotiations and, if all goes to plan, another iteration of the grand coalition.

The new agreement represents an important stage victory in the marathon negotiations for Chancellor Angela Merkel, who would certainly prefer a grand coalition to the other two options currently on the table: heading an unstable minority government, or a new election.

Should the negotiations with the SPD fail, a new election could well usher in the end of Merkel's time in office, as her CDU attempts to revive its fortunes following its worst election results ever. Her party took 32.9 percent in September's election, a drop of 8.6 percentage points on the 2013 result. This has resulted in much self-reflection in the party, along with speculation that Merkel's era was drawing to a close — and even debate about potential successors.

Read more: German coalition talks reach breakthrough: A look at what comes next | Germany| News and in-depth reporting from Berlin and beyond | DW | 12.01.2018

Germany Facing a Return to the Grand Coalition

On Thursday, German President Frank-Walter Steinmeier received the two party leaders for a long discussion, but even in the days leading up to that meeting, it had become clear that the two were eagerly burying the hatchet to lay the groundwork for a possible coalition. Schulz and Merkel, together with Horst Seehofer, who leads the Bavarian conservatives, now intend to explore the possibility of slapping together another governing coalition - the same "grand coalition" that voters so clearly rejected in the general election in late September.

As a group, Germans are thought to value political stability. But a repeat of the SPD-conservative coalition is the kind of stability that wouldn't be good for the country. The last four years have shown that a grand coalition is a static alliance, one that is good at spending money but not as adept at moving projects forward - aside from the project of right-wing populism, of course.

Deputy SPD head Olaf Scholz said recently that a rebirth of the grand coalition would "have negative consequences for our democracy." It would also mean that the right-wing populist Alternative for Germany (AfD) would be the strongest party in opposition. That means it would always have the privilege in parliament of delivering the first rebuttal to Merkel's speeches.

Nevertheless, for the leaders of the parties involved, a grand coalition isn't completely unattractive
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For Merkel, it represents the best opportunity to secure her power, a motive that has long been important to her. And SPD head Martin Schulz already seems to be practicing the arguments he hopes to use at next week's party congress to convince unwilling delegates of the utility of another alliance with Merkel's conservatives.

Read more: Germany Facing a Return to the Grand Coalition - SPIEGEL ONLINE