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Merkel and Schroeder in showdown meeting

09/10/2005 - 14:27:17
Conservative leader Angela Merkel and Chancellor Gerhard Schroeder headed into a showdown today over who will lead a new government, seeking to end a post-election stalemate that is delaying efforts to tackle Germany’s stubborn economic problems.

Three weeks after parliamentary elections, opposition conservatives and Schroeder’s Social Democrats moved toward the formation of a so-called “grand coalition” of the country’s main parties of the right and left.

But the parties remain at loggerheads over whether Schroeder should extend his seven years at the head of the government, or whether Merkel should become Germany’s first female chancellor.

It appeared today that a decision on who will be chancellor and how Cabinet posts might be shared is likely to be firmed up only on Monday after the leaders consult with party officials.

Top-level negotiations, which were suspended Friday and Saturday so that Schroeder could pay a visit to Russian President Vladimir Putin, were to resume at 8pm (7pm Irish time) this evening in Berlin.

Schroeder, who returned to his home in Hanover yesterday, was meeting with his key ally – Social Democratic Party Chairman Franz Muentefering – to prepare for the evening session with Merkel and her fellow conservative leader Edmund Stoiber, party officials said.

The officials, who spoke on condition of anonymity, said plans have been modified so that the results of Sunday night’s meetings will be presented to party meetings on Monday morning, after which the four leaders will come back together at 11am (10am Irish time). Only then will the parties be able to sign off on a deal.

Should the deadlock be resolved, the way would be open for formal coalition negotiations. The leaders have sworn to make no public disclosures on their negotiations until they have party approvals.

Conservatives narrowly won the September 18 election, defeating Schroeder’s coalition with the environmentalist Greens despite a late surge in support for the Social Democrats.

Merkel’s Christian Democratic Union and Stoiber’s Christian Social Union have 226 seats in the 614-seat lower house of parliament, four seats more than the Social Democrats. A coalition needs 308 seats for a majority.

But Merkel failed to reach 308 seats with her preferred centre-right coalition partners, the pro-business Free Democrats, forcing the two largest parties toward uncomfortable talks on a broad left-right alliance.

In several rounds of exploratory talks, the two parties have identified a string of fields where they believe they can work together, including reforming Germany’s tangled federal system and shoring up the government’s overdrawn finances.

They also agree on the need for economic reforms to address double-digit unemployment and shore up the creaking welfare state – though the Social Democrats reject Merkel’s plans to cut the power of labour unions and make it easier for firms to hire and fire.

The parties also differ on foreign policy. Merkel is eager to patch up relations with the US damaged by Schroeder’s opposition to the war in Iraq and is critical of his support for Turkey’s bid to join the European Union.

For now, though, the conservatives refuse to enter formal coalition talks unless Schroeder backs down, fueling speculation that the chancellor is driving a hard bargain in return for his withdrawal – and keeping alive the chance that the country may have to vote again.

“One thing is completely clear: without Angela Merkel as chancellor, there will be no grand coalition,” Peter Mueller, a senior conservative, said on ZDF television.

Some Social Democrats remained defiant, insisting agreements on policy should come before those on personnel.

“There is absolutely no need to decide the chancellor question at Sunday’s summit,” Johannes Kahrs, spokesman for a centrist group within Schroeder’s party, told Die Welt daily. “The main thing is that something with long-term stability emerges.”

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