‘Grand coalition’ prospect as Merkel polls lead narrows

CHANCELLOR Angela Merkel’s lead in the polls is narrowing days before an election, suggesting she may be forced into another “grand coalition” that may struggle to lift Germany out of a deep downturn.

Merkel wants to avoid a re-run of the right-left partnership with the Social Democrats (SPD) that has ruled Germany for the past four years, arguing that it would be less stable and could fail to agree on the policies Europe’s largest economy needs.

Instead, she wants to team up with the business-friendly Free Democrats (FDP) in a centre-right coalition that would pursue tax relief and rein in the role of the state.

A Reuters poll of fund managers and economists yesterday showed tax relief and banking sector reform are at the top of their wish list for the next government to tackle.

The survey also showed that while most respondents believe a centre-right government would be best for the German economy, the majority expect another grand coalition.

Pollsters are hedging their bets on which coalition will end up in power.

A Forsa poll showed Merkel’s conservatives with a wafer-thin lead that would just enable her to reach her goal.

“Nothing is guaranteed,” Forsa head Manfred Guellner said.

His poll gave the conservatives a 10-point lead over the SPD, virtually assuring Merkel of winning a second term.

But the centre-right parties are just one percentage point ahead of the combined total for the other three main parties, raising the spectre of another “grand coalition”.