Coalition options narrow for Merkel’s CDU

Less than 48 hours after Angela Merkel secured a resounding victory in the German elections, the Chancellor's options to form a governing coalition appeared to narrow.

In theory, Merkel's conservatives could join forces with either the center-left social democrat SPD or the left-leaning Green party. While the German Chancellor has said she is open to talks with both, an alliance with the SPD is clearly her party's preferred option. Forming a coalition will likely be a long, drawn-out process however which will involve much haggling.

"This is going to be a tough game," Michael Fuchs, deputy chairman of Merkel's CDU party told CNBC.

He pointed out obvious differences between the Greens and the CDU, such as divisions over taxation and government spending.

"The Greens want higher taxes, Angela Merkel has made it very clear that we don't want to increase any taxes," Fuchs said. "We don't have a problem of too little taxes in Germany but of too much spending." Spending had to go down, he said.

(Read more: Merkel wins: And now for the hard part)

Ideologically, the two are miles apart and an alliance would be awkward. "The Greens have a lot of funny ideas such as vegetarian day for all Germans. We don't want this kind of input. We want the people to be free and to decide what they like," Fuchs said.

The sentiment was echoed by Gerhard Schick, finance spokesman for the Green Party.

"I don't see any basis for a coalition between the Christian Democrats and the Green Party…It's very difficult to imagine a coalition agreement that fits for both parties," Schick told CNBC.

The CDU's Bavarian allies, the CSU, have also ruled out talks with the Greens.

Follow us on Twitter: @CNBCWorld

Contact Europe News


    Get the best of CNBC in your inbox

    Please choose a subscription

    Please enter a valid email address
    To learn more about how we use your information,
    please read our Privacy Policy.

Europe Video

  • ETX to buy Alpari's client list

    Online trading company ETX is set to buy the entire client list of foreign exchange broker, Alpari. Joe Rundle, head of trading at ETX Capital, discusses further.

  • India: Open for business?

    India's stocks and currency have performed strongly recently thanks, in part, to new business-friendly policies. Ashish Chauhan, Managing Director and CEO of the Bombay Stock Exchange, discusses how this has reflected in stock listings.

  • Europe slumps as oil climbs; Airlines fall

    European equities closed sharply lower on Thursday following a selloff in the U.S. Wednesday and a lackluster lead from Asia.