Merkel pushes for "Jamaica" coalition in Germany
German Chancellor Angela Merkel is calling for a union between her CDU (black), FDP (yellow), and Green Party to form a coalition and secure a parliamentary majority. Dubbed the "Jamaica coalition" by political analysts (it shares the colors of the Central American country's flag), it's the only chance to avoid another election in Germany following the rise of the far-right. Investors are already showing concern about this possibility.
Reuters - German Chancellor Angela Merkel on Saturday called on conservatives to forge a three-way alliance with the Free Democrats (FDP) and the Greens, in her most explicit support yet for the so-called "Jamaica" coalition.
Merkel, who won her fourth term in the September 24 election but lost support to the far-right, needs to form a coalition. The "Jamaica" alliance, named for the parties' black, yellow, and green colors, which are also the colors of the Jamaican national flag, is Merkel's most likely path to a parliamentary majority.
Merkel also said that a special party meeting should be held to allow members of her conservative party to discuss and vote on any coalition agreement.
In addition to internal differences within the conservative camp, especially regarding immigration policies, the three parties that will form the "Jamaica" coalition disagree on energy and climate policies, taxes, and Europe.
Merkel made it clear that there is no option other than a coalition. She ruled out another alliance with the FDP, her coalition partner for the past four years, which announced its intention to go into opposition after receiving its worst result since World War II.
"It is clear that the Social Democrats are not capable of being in government at the national level in the foreseeable future, so I advise that we not spend any more time thinking about this," Merkel said.
If Merkel fails to form the "Jamaica" coalition, the prospects of a minority government or even new elections increase, creating an unpleasant scenario for investors who are already worried about the uncertainties of the coming months.