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Merkel and Schulz track their coalition in Germany and a reform phase in Europe

Democrats and Socialists reach an agreement 110 days after the elections and after an intense night of negotiations

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Merkel and Schulz track their coalition in Germany and a reform phase in Europe

Content relief. The two major German parties have achieved a 24-hour negotiating marathon to light up a principle of agreement to set up an executive, after 111 days without government. The unblocking of political crisis in first economy of euro area would guarantee a fourth mandate of Angela Merkel and promises to open a new stage in construction of a European Union, needing cohesion and momentum. "A new beginning is needed in Europe. Toger with France we will find common solutions, "Chancellor Merkel said in morning, after transcending white smoke.

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"Toger, we are determined to use economic and political power of Germany to make Europe a great project again," said Martin Schulz, Social Democrat leader, cosigner of pact with Merkel and her Bavarian ally, Horst Seehofer. The preamble to 28-page document born of a strenuous negotiating week announces "a new beginning for Europe," as a priority of "new political time." But draft agreement does not imply much less immediate formation of a government in Berlin. We will have to wait weeks for parties to draft pact's small print.

So far relief of having reached a pact that averts a potentially larger crisis, with a possible repeat of elections included. Containment has to do with large coalition project still to overcome thorny procedures before being made effective. The principal, to achieve approval between divided social democratic bases, where for many, idea of a new agreement with conservative block of Merkel raises rashes.

The next 21st in Bonn, more than fifty SPD delegates will have to decide if y agree to embark on a large coalition like one that has ruled so far and who has reported to SPD disastrous election results – worst since World War II. And in a few weeks, it will be all militants – about 400,000 – who vote on final agreement. Within CDU and also CSU ( CDU's Bavarian partner), some members are also wary of a pact which y believe will cost citizens very expensive because of social spending and investment demands of those who have been raised.

The consensual document constitutes skeleton of government programme of future German executive. And it constitutes first firm and to some extent detailed response to invitation of French President Emmanuel Macron, ready to "refound Europe" by hand of German chancellor.

CDU, CSU and SPD undertake to reinforce eurozone in cooperation with France and to transform European rescue mechanism into a sort of European Monetary Fund under control of Parliament. They also declare mselves willing to increase German contribution to European budget. "We are prepared to make greater contributions from Germany to European budget," text says.

The text also indicates that re will not be a tax hike for big fortunes as required by SPD and that it has been one of points that has provoked most confrontation between negotiators. In migratory matters, y set a stop for refugee entry as Conservatives demanded.

The negotiations have taken a sideways look at far right, rubbing ir hands at prospect of prolonged German misrule, which in ir view demonstrated inability of traditional politicians.

With this agreement, Merkel has reproved her ability to resist — also physically — and to start arrangements late in morning. With it, Chancellor also guarantees a fourth mandate to front of Germany, when again rage criticisms to its management. Although Chancellor won elections in September, he did not achieve majority enough to form a government. In recent weeks Merkel tried to form an executive with Liberals and Greens — so-called Jamaica Coalition — but attempt failed miserably. The Chancellor n resurrected idea of a new big coalition with Social Democrats, like one that has ruled in Germany for eight of last 12 years. A second failure, would have been a perhaps deadly coup for political future of hirto eternal Chancellor.

But SPD's acceptance was not much less insured. After September elections, SPD announced that it would go to opposition after attrition suffered as a minority partner in Merkel's third government. Political engineering was needed to persuade Social Democrats to sit down at negotiating table. To achieve a consensus on skeleton of a government program without great ideological sacrifices is a new triumph for Chancellor.

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