Merkel Working on Forming Coalition After Election Victory

Angela Merkel and her CDU/CSU party won a resounding victory in Sunday's elections with nearly 42 percent of the vote and is headed for a third term as German chancellor.

Merkel has already had contact with the leader of the centre-left Social Democrats (SPD) about the possibility of a 'grand coalition.' However, she may need to offer the SPD, which has major reservations about joining her in a repeat of their 2005-2009 coalition under Merkel, key cabinet posts in order to convince them. Such an arrangement promises to be challenging, as the SPD has been insisting on addressing the growing low-wage sector.

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