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Published: Thu, February 15, 2018
Economy | By Melissa Porter

The German coalition agreement - the final results

The German coalition agreement - the final results

Mrs Merkel faces growing internal dissent over her decision to give the post of finance minister to Olaf Scholz, a Social Democrat (SPD), during hard coalition talks last week.

She sought to allay fears among conservatives that by ceding the finance ministry, the next government will stray from the strict fiscal discipline enforced by former finance ministerWolfgang Schaeuble.

Merkel's conservatives and the Social Democrats managed to reach a coalition agreement after the chancellor's attempt to forge an unorthodox "Jamaica" coalition with the pro-business Free Democrats and the Green party collapsed last December. We looked on the coalition agreement text, which provides directions on the new German coalition´s position on energy and carbon.

The party's membership will vote next week on the coalition deal struck last week between Mr Schulz and Mrs Merkel.

Schulz's other announcement Friday - that Andrea Nahles, the party's parliamentary leader, would take over as the Social Democrats' chairwoman - also gave rise to a chorus of concerns.

On Tuesday, Mr Schulz said he hoped his decision to resign would result in party members focusing on the coalition treaty rather than personnel issues.

Scholz and Nahles thanked Schulz for his leadership of the party.

Merkel, after more than 12 years in power in which she became Europe's go-to leader, is now widely held to be in the twilight phase of her political tenure, although she has not yet been openly challenged.

The coalition deal has yet to be approved by the SPD's approximately 460,000 members, whose verdict will be announced on 4 March.

"The SPD is trying to calm the public with the change in leadership", said Carsten Brzeski, chief economist at ING-Diba in Frankfurt.

"I am one of those people who sticks to what they promise", Merkel said in a TV interview with broadcaster ZDF on Sunday, cited by Politico.

Later this month, Mrs Merkel will reveal the names of the five CDU ministers likely to take their place in the new cabinet.

Within the demoralised SPD, an even more dramatic feud has broken out into the open - between election loser Martin Schulz and his former ally turned rival Sigmar Gabriel.

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