Tough coalition talks lead to government deal
A month of German coalition talks proved difficult, with many thorny issues decided only after 17 straight hours of negotiations. Now the outline for the next government is set, but ministry jobs still need handing out.
Done deal in Berlin
After weeks of political wrangling, leaders of Germany's two largest political parties announced a deal to form a new grand coalition government early Wednesday morning. The agreement resulted from a final round of negotiations that lasted 17 hours. The deal did not hand out minister positions and still needs to be approved by Social Democratic Party members.
The path to compromise
After September elections handed German Chancellor Angela Merkel's Christian Democrats (CDU) nearly 42 percent of the vote, many saw the Social Democrats (SPD) under chairman Sigmar Gabriel as her most probable future coalition partner. But the two parties' policy goals varied widely.
Minimum wage: Ideological battleground
It was on the issue of a national minimum wage that the two sides were furthest apart going into talks. The final deal calls for the introduction of a federal minimum wage of 8.50 euros ($11.55) as demanded by the SPD. But it won't come into effect for all industry and labor groups until 2017. The CDU had said it fears that jobs and Germany's international competitiveness will suffer.
Paying for the autobahn
Neither the SPD nor the CDU wanted tolls on German highways. But Horst Seehofer, head of the CDU's Bavarian sister party, the Christian Social Union (CSU), had promised voters he would only join a coalition if highway tolls for cars were implemented. Yet only foreign visitors are to be charged. Finding a way to impose the toll without breaching EU law will be a tricky task.
Who gets a bigger pension?
The SPD wanted employees who have worked for 45 years to be able to draw a full pension, even if they're only 63 years old, while the CDU aimed to give a pension bonus to mothers who had children before 1992. The final deal reportedly calls for both demands to be met, which is likely to cost Germany several billion euros.
More women in top jobs
Only 12.5 percent of the BMW board members are women - that's her legs you can see in the middle of the picture. It's not enough, both parties say. They want to make public companies declare how they're going to increase the number of women on their boards and in senior management. There'll be a legal quota of 30 percent in supervisory boards - almost three times as many as there are now.
How to handle health care
There was surprisingly quick agreement on health care: insurance rates will rise and the cap on public health insurance premiums will end. The SPD won the abandonment of the so-called head-tax, which the CDU wanted to use as a transition to a single rate for rich and poor alike. That was an important issue for the SPD.
Reliable foreign policy
Though not set in stone, it's expected that the Social Democrat Frank-Walter Steinmeier will be chosen as foreign minister, with the task of giving a bit more shape to German foreign policy. Whereas the Foreign Ministry used to be the big prize, that's no longer the case - the CDU thinks the Finance Ministry is much more important.
Energy policy compromise
The two sides agreed to expand the use of renewable energy to 55 percent to 60 percent of the country's needs by 2030. The SPD had pushed for 75 percent of German electricity to come from renewable sources while the CDU said 50 percent to 55 percent would be enough.
Yea-or-nay vote
Now that party leaders have agreed, the nail-biting can start. For the first time in German history, members of a party will have the right to approve the coalition. The SPD will ask its grassroots supporters if they accept the result. Results from the anonymous postal ballot are expected in mid-December.