Balance of Power: Merkel Thrown Lifeline by Old Ruling Partner

After Angela Merkel’s hopes for a fourth term as German Chancellor were cast into chaos, her traditional rivals may now toss her a lifeline.

Spurned by the Free Democrats, who walked out of coalition talks Sunday and said they couldn’t trust her, the Social Democrats are signaling they may step into the breach.

SDP leader Martin Schulz has repeatedly ruled out recreating the so-called grand coalition that governed for the past four years after suffering a historic defeat in September. But, as Birgit Jennen exclusively reports, he’s coming under pressure from President Frank-Walter Steinmeier to cut a deal.

Schulz will tell Steinmeier when they meet this afternoon that he’s ready to start talks to explore how he and Merkel might work together. So far the SPD leader has only been prepared to support a minority government without a formal coalition.

While Merkel has expressed skepticism about governing without a majority, after a four-day standoff, Germany’s two biggest parties have started inching toward each other. The rest of Europe is hoping they’ll meet.

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