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MNI US Macro Weekly: Politics To The Fore
GERMANY VOTE: FDP Increasingly Likely Merkel Coalition Partner
By Tara Oakes
BRUSSELS (MNI) - Germany's liberal FDP party are set for a comeback in the
upcoming federal elections, according to the most recent polling data.
Emnid's survey, conducted between July 20-26 and published Saturday, put
voting intentions for Chancellor Angela Merkel's CDU/CSU coalition at 38%, 14
points ahead of closest rivals the SPD, who have dropped a point to 24% since
the pollster's last indications.
The eurosceptic AfD have benefited from the SPD's 1% fall and now match the
far-left Die Linke party at 9%, while the Greens remain steady at 8%, the poll
said.
But all eyes are on the FDP, who on these figures would be set to reenter
the Bundestag after an embarrassing failure to meet the 5% threshold at the last
election. Their figures have climbed steadily since late April, when they were
only just hitting the necessary 5%.
Merkel's party, despite the clear lead over Martin Schulz's centre-left
rivals, would still need a coalition partner to prop up their government if
voting continues in line with Emnid's estimates.
Since 2013, the CDU have governed as a "grand coalition" with the SPD. But
historically the FDP have consistently been their coalition partner of choice
where possible: eight of the 18 Bundestag sessions since 1949 have involved the
pair governing together in some form of deal.
Seat estimates are difficult due to the mixed electoral format used for
Bundestag votes. Germany's electoral system splits seats roughly 50-50 in the
630-member house between direct election in constituencies and a proportional
list. If a party gets at least three directly elected members or 5% of the
national vote they are allocated a proportional number of seats -- something the
FDP missed out on last time for the first time in its history.
But on current figures a CDU/CSU and FDP coalition is increasingly likely,
as is already the case in Germany's North Rhine-Westphalia regional government.
If the pair together fail to top the 50% mark of seats, the most likely "trio"
of coalition partners could be the so-called "Jamaica" format of CDU-FDP-Greens,
unless the SDP are keen to throw their lot in with Merkel's party for another
"grand coalition" - and, of course, if they are invited to do so.
--MNI Brussels Bureau; +44 203-865-3851; email: tara.oakes@marketnews.com
--MNI London Bureau; tel: +44 203-586-2225; email: les.commons@marketnews.com
[TOPICS: M$E$$$,M$G$$$,M$X$$$,MC$$$$]
To read the full story
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Please enter your details below.
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.