Merkel’s Not-So-Grand Coalition To duck a new election, she may move further left on policy.

https://www.wsj.com/articles/merkels-not-so-grand-coalition-1512661140

Angela Merkel’s leftward drift cost her center-right party seats in September’s German election, and her center-left coalition partners fared even worse for having governed with her. Yet now she proposes to move even further left at the behest of that losing partner so she can form another unpopular coalition with them? Go figure.

Mrs. Merkel has failed to form a government since September’s murky result in which her center-right Christian Democrats (the CDU and Bavarian CSU) lost 65 seats. Her first try at a coalition, with the free-market Free Democrats (FDP) and the urban leftist Greens, fell apart when the FDP refused to bend on energy policy and migration.

Yet Mrs. Merkel is resisting a new election or a minority government, on the theory that either would be a post-War novelty in Germany and would echo a less stable and more frightening time in the country’s history. Instead she’s trying to browbeat the center-left Social Democrats (SPD) into negotiating another grand coalition after months of SPD resistance.

The SPD has participated in such coalitions for eight of the 12 years that Mrs. Merkel has been in office and seemed to have concluded after winning their lowest post-1949 vote share in September that voters want an opposition party that opposes.

On the policy merits a grand coalition is likely to be a bad deal. Some SPD leaders think the party can mitigate the political fallout from cooperation with Mrs. Merkel by striking a harder bargain than it has in the past, and Mrs. Merkel might go along to keep power.

That would mean less tax relief than the €15 billion ($18 billion) cuts to personal income taxes Mrs. Merkel promised before the election, or a further retreat from modest pension reforms that raised the retirement age. The SPD also could pull Mrs. Merkel away from a more realistic approach to Middle Eastern migration.

The bigger consequences of another grand coalition would be political. Mrs. Merkel, having been punished by voters for her milquetoast centrism, would be bowing to the policy wishes of a center-left party that now has even less of a mandate than it did before the election. This will be worse than the instability of a minority government or another election because it signals that voter dissatisfaction doesn’t matter in Berlin. That, and not a second election, is what creates opportunity for political extremists on the left and right.

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