New German coalition will emerge from tricky talks

Significance

Such a coalition is the only viable option to form a new government -- yet it is unprecedented at the national level.

Impacts

• A ‘Jamaica’ coalition would position Germany more strongly in favour of free-market policies than previous governments.
• The inevitable question of Merkel’s succession could destabilise the coalition in a few years’ time, with no obvious successor in place.
• The SPD is likely to move to the left in order to sharpen its profile.
• The AfD may struggle to meet the test of sustained parliamentary work.