Germany limps towards a new govt

Germany's centre-left Social Democrats yesterday voted to begin formal coalition talks with Chancellor Angela Merkel's conservatives, bringing Europe's top economy a step closer to a new government after months of deadlock.

At a special party congress in the western city of Bonn, 372 out of 642 party delegates backed SPD chief Martin Schulz's push to approve a preliminary coalition deal painstakingly hammered out with Merkel's CDU/CSU bloc.

The thumbs-up will come as a huge relief to Merkel, staving off the threat of snap polls or the unappealing prospect of leading an unstable minority government.

It also means a reprieve for Schulz who had staked his political future on a "yes" vote, despite initially rejecting another stint as Merkel's junior coalition partner.

"We are relieved, the result shows that we had to fight for this majority," Schulz said.

The vote, which was closely watched in Germany and abroad, paves the way for negotiators to launch in-depth negotiations this week.

If the talks are successfully concluded, a new government could be in place by mid-March -- nearly six months after September's tricky election.

Germany's political breakthrough is likely to be welcomed in capitals across Europe, eager to see an end to the political impasse in a pivotal member state that has left key EU policy decisions on hold.

The vote outcome was far from certain after leading SPD members savaged a coalition blueprint thrashed out by the three parties this month, complaining the 28-page document contained too many concessions on issues such as migration, taxes and healthcare.

Germany has been stuck in political limbo since September's inconclusive general election saw mainstream parties bleed support to the far-right AfD, which tapped into anger over Merkel's open-door refugee policy.

Schulz yesterday admitted that the party did not get everything on its wish list and vowed to extract more concessions in the formal coalition talks.

He also pledged to resist the CSU's demand to cap migrant arrivals at 200,000 a year and promised that any future coalition government would be put up for review after two years.

Merkel, often dubbed the world's most powerful woman, has been hamstrung on the global stage as the domestic drama has played out, and she is increasingly described by commentators as entering the twilight of her rule after more than 12 years in power.

While she has now overcome a key hurdle towards clinching a fourth term as chancellor, it's not yet a done deal.