Political jiu-jitsu

20 November 2017 By Swaha Pattanaik Follow @swahapattanaik

The collapse of coalition talks will force German Chancellor Angela Merkel to weigh other options. Another grand coalition or a minority government would be preferable to new elections. Revamping the euro zone will be easier without the Free Democrats opposing fiscal integration.

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Chancellor Angela Merkel said on Nov. 20 that her efforts to form a three-way coalition government had failed. She added that she would stay on as acting chancellor and consult with President Frank-Walter Steinmeier on how to move forward.

The pro-business Free Democrats (FDP) unexpectedly pulled out after more than four weeks of negotiations with Merkel’s conservative bloc and the ecologist Greens, citing irreconcilable differences.

The euro was up slightly against the U.S. dollar at 1.179 by 0940 GMT on Nov. 20.

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