InfoAnda - Merkel wins, Germans opt for center-right coalition

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My Profile Top News Reuters top ten news stories delivered to your inbox each day. Subscribe You are here: Home > News > International > Article Home Business & Finance News U.S. Politics International Technology Entertainment Sports Lifestyle Oddly Enough Health Science Special Coverage Video Pictures Your View The Great Debate Blogs Weather Reader Feedback Do More With Reuters RSS Widgets Mobile Podcasts Newsletters Your View Make Reuters My Homepage Partner Services CareerBuilder Affiliate Network Professional Products Support (Customer Zone) Reuters Media Financial Products About Thomson Reuters Merkel wins, Germans opt for center-right coalition Sun Sep 27, 2009 4:38pm EDT Email | Print | Share | Reprints | Single Page [-] Text [+] By Noah Barkin and Madeline Chambers BERLIN (Reuters) - German voters gave Chancellor Angela Merkel a second term in an election on Sunday and a mandate to form a new government with the business-friendly Free Democrats (FDP) that is expected to cut taxes to boost growth. The conservative Merkel has ruled for the past four years in an awkward "grand coalition" with her main rivals, the center-left Social Democrats (SPD). The election result frees her from the shackles of that partnership and allows her to form the center-right coalition she has argued is best placed to nurture Europe's largest economy back to health following its worst post-war recession. The next government faces major economic challenges. It will have to get a surging budget deficit under control, cope with rising unemployment and ward off a credit crunch as fragile banks rein in lending. Together with the FDP, Merkel is expected to pare back the role of the state in the economy and extend the lifespan of German nuclear plants that are scheduled to be phased out over the next decade. The parties, which last ruled Germany between 1982 and 1998 when Helmut Kohl was chancellor, will have to overcome differences on the size and timing of tax cuts in coalition talks over the coming weeks. Some analysts say, given budget constraints, such cuts will likely have to wait at least a year. "We can really celebrate tonight, but afterwards we have a hard job ahead of us," Merkel, wearing a bright red suit, told cheering supporters. Projections from ARD and ZDF public television showed Merkel's conservative bloc -- the Christian Democratic Union (CDU) and the Bavarian Christian Social Union (CSU) -- on 33.6 percent, down from their score of 35.2 percent in 2005, and their second-worst result in the post-war era. But the FDP, a party which saw its support rise in the wake of the financial crisis, compensated for those losses, surging to a record high of 14.6 percent and putting the center-right over the top. CAUTIOUS CAMPAIGN The SPD, which has been in government for over a decade, will join the environmentalist Greens and Left party in the opposition after plummeting double digits to 23.1 percent, their worst result since the war. Merkel's SPD challenger Frank-Walter Steinmeier, who served as her foreign minister for the past four years, called it a "bitter defeat." Projections showed the Greens on 10.5 percent and the Left on 12.1 percent. Merkel was accused of running a cautious campaign short on substance and passion, but Germans have been content with her steady, low-key style and -- unlike voters in the United States and Japan -- did not seem keen for a change in leadership. "This is a very good result for Angela Merkel, even if it is quite a weak result for her party," said Jan Techau, an analyst at the German Council on Foreign Relations. "She has been confirmed in her post, which is a big achievement in the depths of such a severe recession." In addition to a soaring deficit, which is projected to rise to 6 percent of gross domestic product (GDP) next year, the new government will face a host of other tasks in the next months. Continued... View article on single page Share: Del.icio.us Digg Mixx Yahoo! Facebook LinkedIn Next Article: German elections seen triggering brief stocks rally Analysis U.S. plan B for Afghanistan has its own problems While U.S. President Barack Obama wrestles with the idea of committing more troops to Afghanistan, a counter proposal is also on the table -- trim American forces and focus narrowly on counter-terrorism. Full Article | Full Coverage More International News Palestinians warn Israel after Jerusalem clash | Video Brazil rejects Honduras ultimatum over Zelaya | Video India minister says had candid talks with Pakistani Colombian rebels say will free two of 24 hostages Afghan cabinet minister escapes Taliban attack | Video More International News... Video Germans vote in general election Play Video More Video... Related News German elections seen triggering brief stocks rally 4:38pm EDT German coalition's tax cut plans may have to wait 3:44pm EDT German SPD candidate concedes bitter defeat in vote 12:46pm EDT Highlights of final campaign speeches in Germany 4:24am EDT SNAP ANALYSIS: German center-right would cut tax, shrink state 1:26pm EDT INSTANT VIEW: Merkel on course for center-right coalition 1:35pm EDT FACTBOX: Policy differences on German center-right 1:58pm EDT FACTBOX: Challenges facing next German government 2:19pm EDT FACTBOX: Likely cabinet members in new German government 2:33pm EDT FACTBOX: Policy in the next German government 2:47pm EDT Editor's Choice Slideshow A selection of our best photos from the past 24 hours. 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