Merkel's Bid to End German Gridlock Hangs on Key SPD Vote

  • Parties agree to start formal talks to revive grand coalition
  • Many Social Democrats wary of again being junior partner
The political status quo is "no bad thing" given the way the economy is performing, State Street’s Timothy Graf says.Source: Bloomberg
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Chancellor Angela Merkel reached a preliminary accord with the Social Democrats to end Germany’s political gridlock, moving closer to a fourth term and defying domestic critics who say her time is running out.

The next hurdles are a key vote by her reluctant SPD partners later this month and then finalizing the deal in another round of talks.