German Chancellor Angela Merkel [Xinhua]

On the night of September 24, 2017, German Chancellor Angela Merkel was celebrating victory in the latest federal election. Although her Christian Democratic Union (CDU) failed to reach the high percentages of the previous elections in 2013 and 2009, her fourth term could hardly be jeopardized. 

However, the new political environment created by the electorate meant a different type of coalition government could possibly emerge in the place of the previous one between the CDU, its sister Bavaria Christian Social Union (CSU) and the Social Democratic Party (SPD). 

In a television debate involving all political leaders organized almost immediately after the announcement of the first results, SPD head Martin Schulz said that no repeat of the grand coalition was possible. 

He interpreted the 20.5 percent voting share of the SPD as a clear mandate to stay in opposition and organize itself for the next election in four years. Merkel did not hide her disappointment at this, seeing Schulz's comments as questioning the quality of the government work produced by the coalition from 2013 until 2017. 

So, another scenario started to gain ground: potential cooperation between CDU/CSU, the Liberals (FDP) and the Greens. When such talks collapsed last November, Germany faced a possible political impasse. To avoid a snap election or a minority government, CDU/CSU and SPD had no other choice but to revive the possibility of a continuation of the grand coalition. 

Under heavy pressure Schulz buried his previous public comments, and  the parties reached a preliminary agreement outlining the basis for moving ahead with formal coalition talks. 

There is no final agreement yet; however, there is a 28-page paper containing a list of policies where common ground has been identified. For example, they agreed that the number of asylum seekers to be accepted should be capped at between 180,000 and 220,000 per year; and, in the meantime, they are also prepared to show some flexibility in regard to family reunification allowing 1,000 people per month.  

As far as taxation is concerned, they do not plan any tax hikes and the special tax instituted after the reunification of Germany in 1990 to help support the former Eastern part of the country will be gradually reduced. In the field of health insurance, no single "citizen's insurance" will replace the current dual system involving public and private schemes. 

With reference to social policy, the state pension will be fixed at its current level of 48 percent of average lifetime salaries until 2025, although it had been projected to fall to 47.6 percent over the next two years. Also, more investments in education and digital infrastructure will be realized. 

However, Germany will continue to balance its budget on the whole. The expected $7.2 billion in planned investments will not challenge Berlin's general economic principles set last year. 

When a compromise is reached, parties involved have to make concessions. This is what has happened with the CDU/CSU and SPD. Depending on the political perspective of someone reading the 28-page document, more benefits or losses for the one or the other side respectively are acknowledged. 

However, what matters more is that Germany is finding a way for political calmness after a few months of turbulence, a situation rather bizarre for its political culture. 

The last obstacle will be the SPD Congress to take place on January 21 because party members will have to approve the provisionary deal with the CDU/CSU. Some of them are skeptical with Schulz's adjustment to political reality after the collapse of talks between CDU/CSU, FDP and the Greens, predicting huge political damage for the party. 

Others are seeking more social justice, which in their view is absent from the 28-page paper. In response, the official SPD line is that 60 points put forward by the party committee have been included. 

The initial agreement between CDU/CSU and SPD is good news not only for Germany but also for Europe and anyone beyond believing in European integration, including China. Unveiling it, Merkel hailed a "new dawn for Europe," with her country being back at the forefront of efforts to reform the EU. 

Schulz, who hopes for the creation of a "United States of Europe" by 2025 might push for more cooperation with France in this regard. Of course, obstacles posed by the CDU/CSU will hardly be eliminated in the next three-and-a-half years. It is better to have the EU reform on the agenda than to officially sideline it, though.

George N. Tzogopoulos is a columnist with China.org.cn. For more information please visit:

http://www.china.org.cn/opinion/GeorgeNTzogopoulos.htm

Opinion articles reflect the views of their authors, not necessarily those of China.org.cn.

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