Global & Regional Focus Notes
21 November 2017
Olga Kosma, Eurobank Research Economist
Paraskevi Petropoulou, Senior Economist of Eurobank
The three-party Jamaica coalition talks involving Angela Merkel’s Conservative Christian democratic political alliance CDU/CSU, the liberal Free Democratic Party (FDP) and the Greens fell apart late on Sunday November 19 after the chairman of the FDP Christian Lindner unexpectedly pulled out of negotiations. Apparently, after four weeks of exploratory talks, the negotiators failed to reach a compromise on a number of key issues, including: immigration, climate protection and fiscal policy. With coalition talks coming to a deadlock, Germany is now left with four possible options: 1. Resumption of coalition talks, 2. Grand coalition between CDU/CSU and the Social Democratic party (SPD), 3. Minority government or 4. New elections.
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