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IMPACT – MEDIUM
Germany’s two largest political parties have formally agreed to begin another grand coalition government, with Angela Merkel poised to begin her fourth term as the country’s chancellor. The agreement forged between Merkel’s Christian Democratic Union (CDU) and the Social Democratic Party (SPD) is expected to pave the way for new immigration policies.
The two sides agreed:
Background: Although Merkel won a fourth term as Germany’s chancellor in September, the victory was dampened by a weak showing for her party and a stronger than expected finish for the far-right Alternative für Deutschland, which will now become the biggest opposition party. The CDU-SPD discussions only began after talks between the CDU and the business-friendly Free Democrats and the Greens fell apart last fall. The CDU-SPD coalition agreement was finalized with a favorable vote by the SPD’s rank-and-file members.
BAL Analysis: The new government is preparing to take control this month, with Parliament expected to choose Merkel as chancellor March 14. The agreement offers an indication of what policies Germany will develop on immigration. BAL will continue to follow matters in Germany and will alert clients to any significant changes.
This alert has been provided by the BAL Global Practice group. For additional information, please contact your BAL attorney.
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