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Tribune News Service
Tribune News Service
National
Arne Delfs and Birgit Jennen

Merkel coalition looks hard at its options after key resignation

BERLIN _ Germany's two main governing parties will try to pick up the pieces of their rattled coalition on Monday after one of Chancellor Angela Merkel's key allies quit in the wake of poor election results.

The Social Democrats, the junior coalition partner, will begin searching for an interim chief after Andrea Nahles said she lost the support of her party, part of which wants to ditch Merkel's Christian Democrat-led bloc in hopes of rebuilding voter trust. The chancellor's CDU will engage in a second day of soul-searching following its own setbacks in last month's European elections and uncertainty over Merkel's succession.

Nahles played a key role in forging and keeping alive the so-called grand coalition government. Her departure could prompt the SPD's exit from the government, forcing Merkel to lead a minority government, form an alliance with the pro-market Free Democrats and the Greens, or face an early election. While the administration's future looks more uncertain than ever, the SPD is likely to remain put as it would face a resounding defeat in a new nationwide poll, according to Holger Schmieding, London-based chief economist at Berenberg Bank.

"The temptation of cutting the ties looks beneficial for the SPD but new elections would be a catastrophe for it," said Schmieding by phone. "I expect the SPD under new leadership will remain in the coalition _ if not, it'll be the end of Merkel as chancellor."

One potential contender ruled himself out as SPD head on Sunday: Finance Minister Olaf Scholz said on an evening talk show that he isn't in the running.

Merkel, the chancellor of Europe's biggest economy since 2005, signaled she'll seek to ride out the latest crisis in a shifting political landscape that's increasingly testing her hold on power.

"We'll push ahead with the work of our government with a sense of complete seriousness and, crucially, a great sense of responsibility," she told reporters in Berlin.

CDU chairwoman Annegret Kramp-Karrenbauer, known as AKK, said she expected the SPD to decide swiftly on a new leader to avoid hampering the coalition's work.

There's growing concern over AKK's leadership skills since she succeeded Merkel at the helm of the CDU in December. As Bloomberg reported on May 28, Merkel has decided that AKK is not up to the country's top job, according to two officials with knowledge of her thinking. A poll published Sunday showed most Germans agree with the chancellor.

GREENS AHEAD

Merkel's CDU-led bloc was replaced in the No. 1 spot by the Green Party for the first time in a national survey, polling company Forsa said on Saturday. Support for the Social Democrats dropped 5 percentage points to 12%, just 1 point ahead of the far-right Alternative for Germany.

Late on Sunday there were signs the CDU was closing ranks as the government's survival looked at risk.

"We are all responsible, we must all become better. The CDU stands behind its party leader," Armin Laschet, the party's state leader in North Rhine-Westphalia, said when asked whether AKK was to blame for the party's poor EU election result. Along with Friedrich Merz, Laschet is considered a possible replacement for Merkel in case of early elections.

SUPPORT HALVED

The SPD reluctantly agreed to enter a third alliance with Merkel 14 months ago. In the European Parliament elections in May, its support almost halved to 15.8%. The same day, the SPD lost its traditional stronghold of Bremen, coming in second to Merkel's CDU in the city-state's election.

The SPD choice for a new leader in coming weeks is expected to be linked to a debate about the grand coalition's future. SPD lawmaker Karl Lauterbach called for an interim leadership so to avoid any rush decision.

"The party is split, there are many members who want to leave and many who want to stay," Ingrid Arndt-Brauer, an SPD lawmaker on the Bundestag's Finance Committee, said by phone. "The decision on that should not be rushed."

_With assistance from Zoe Schneeweiss.

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