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Tomorrow's formal election of Angela Merkel as Germany's chancellor will not mark a new era in economic policy. But in one respect there is a cause for guarded optimism. German foreign policy towards both the European Union and the US may become more stable and predictable. Ms Merkel intends to return to the foreign policy doctrine that prevailed under Helmut Kohl, the last Christian Democrat chancellor. Mr Kohl managed to combine unwavering support for European integration - often in seeming contradiction to the national interest - with a firm commitment to transatlantic relations. It was this policy that made Germany,...

PARIS (AP) - A stoic atmosphere prevailed Friday at outgoing German Chancellor Gerhard Schroeder's farewell dinner with French President Jacques Chirac, one of his closest allies on issues ranging from Europe's future to the Iraq war. "Let's not be too sentimental or else we'll have to get out our handkerchiefs," Schroeder said before dinner at the Elysee Palace. Schroeder is to step down after Chancellor-designate Angela Merkel formally takes office. Every six weeks, Chirac and Schroeder have got together for informal dinners, harmonizing their policies. They hugged warmly as Schroeder got out of the car Friday. Through Chirac, "I have...

Germany's new government line-up began taking take shape as the Social Democrats said party chief Franz Muentefering would become the number two to incoming conservative chancellor Angela Merkel. Muentefering, a close ally of outgoing Chancellor Gerhard Schroeder, would also hold the post of labour minister, senior party official Matthias Platzeck said Thursday. He confirmed that the key finance and foreign ministries, will respectively go to Peer Steinbrueck, a state premier, and Frank-Walter Steinmeier, the current minister in the chancellory. The 49-year-old Steinmeier is also a close ally of Schroeder and a smooth political operator who has earned the respect even...

<p>Gerhard Schröder, ousted German chancellor, continues to make life difficult for his successor. In his latest snub to Angela Merkel, he has decided to attend the European Union summit at Hampton Court, London on October 27.</p> <p>By representing Germany a mere three weeks before he is due to step down, Mr Schröder is proving less of a gentleman than Helmut Kohl, his predecessor.</p>

Schröder bows out with a dig at Blair and Bush By Kate Connollyin Berlin (Filed: 13/10/2005) Germany's outgoing chancellor, Gerhard Schröder, took swipes at Britain and America yesterday as he announced that he would not be part of the next government. In a speech to trade unionists in his home town of Hanover, he criticised Tony Blair over his vision for the future of the European Union. Gerhard Schröder yesterday "I say to my British friend that people in Germany, in Europe, do not want complete denationalisation," he said. "They want a state that is not in front of their...

Even when she became the leader of the conservatives, few people -- including many within her own party -- took her seriously. All luck, they said. But now, Angela Merkel is set to become Germany's first ever woman chancellor and has left all her political opponents in the dust. How did she do it? It's the middle of February in 2000 and Angela Merkel has invited her most trusted advisors, office manager Beate Baumann and spokeswoman Eva Christiansen, to a closed door meeting in her office at the Christian Democratic headquarters in Berlin. The mood in the building is grim;...

By Noah Barkin and Claudia Kade BERLIN, Oct 10 (Reuters) - Conservative leader Angela Merkel will become Germany's first woman chancellor under a deal with Gerhard Schroeder's Social Democrats (SPD) to break a post-election deadlock, sources said on Monday. Three weeks after voters gave Merkel's conservatives an unexpectedly narrow win over Schroeder's SPD in a federal election, senior sources from both parties said an agreement had been struck that should pave the way for a power-sharing cabinet. According to a senior SPD source, the SPD is poised to get the foreign, finance, justice and labour ministries in a new coalition...

GERMAN Chancellor Gerhard Schroeder met his conservative rival Angela Merkel on the weekend amid reports he was ready to concede defeat and allow her to become chancellor. The political stalemate caused by inconclusive elections three weeks earlier appeared to be nearing a solution, but no decision will be announced until Monday (local time). Ms Merkel and Mr Schroeder were to hold a further meeting after the outcome of Sunday's talks had been put to their respective party leaderships. The leaders maintained their promise not to comment after Sunday's discussions, just as they stayed silent after their first leadership summit on...

Merkel has worked out a deal with Schroeder after a close election. She will be the new chancellor come November. Here is an interview the FT had with her last July...this is our new ally in the WoT.The following is an edited transcript of the FT interview with Angela Merkel, Christian Democratic Union leader. FT: You have been in France recently. Was it a productive journey? Angela Merkel: I was in France. I spoke to the president, the prime minister and to the interior minister, but in the last case I was speaking to him in my capacity as chairwoman...

BERLIN (Reuters) - Germans are expected to learn on Monday who will take charge of their country, after talks between Chancellor Gerhard Schroeder and conservative rival Angela Merkel aimed at settling the bitter leadership feud. Schroeder and Social Democrat (SPD) chairman Franz Muentefering are to sit down for a third, and probably final, time from 11 a.m. (0900 GMT) on Monday with Merkel and her ally, Christian Social Union (CSU) leader Edmund Stoiber. The four party heavyweights ended a second round of discussions shortly before midnight on Sunday and left without saying a word. They had cautioned last week that...

Merkel set to replace Schröder as German leader By Hugh Williamson in Berlin and Bertrand Benoit in Frankfurt Published: October 7 2005 19:41 | Last updated: October 7 2005 19:41 Christian Democrat leader Angela Merkel is set to replace Gerhard Schröder as Germany's next chancellor, in a political deal that will see the departure of Mr Schröder from the national political stage, senior members of the ruling Social Democrats have told the Financial Times. Ms Merkel's expected victory in the battle for the chancellorship is likely to be announced on Monday, following a meeting on Sunday evening in Berlin between...

Germany's Christian Democrats (CDU) have won the last seat in the country's inconclusive general election. The result in the eastern city of Dresden means the CDU increases its narrow lead over the Social Democrats (SPD) by one seat. Both CDU leader Angela Merkel and current Chancellor Gerhard Schroeder hoped for a win to boost their chances of leading a governing coalition. The Dresden vote was postponed when a candidate died during the campaign.

DRESDEN, Germany (AP) - Partial vote returns from the last district in Germany's parliamentary election Sunday indicated that conservative challenger Angela Merkel's party would gain one legislative seat, giving her some extra momentum in coalition talks to form a new government. With 172 of 260 electoral districts reporting, Andreas Laemmel from Merkel's Christian Democrats led with 37.2 percent, while Marlies Volkmer from Chancellor Gerhard Schroeder's party received 32.2 percent. A third candidate in Dresden, Katja Kipping of the Left Party, made up largely of former East Germany communists, trailed with 19.2 percent. That result, if it holds, would give the...

DRESDEN, Germany - Chancellor Gerhard Schroeder and challenger Angela Merkel battled over a last remaining seat in parliament Friday, hoping to get an edge in a weekend vote and end Germany's political stalemate. Merkel suggested that Sunday's balloting in the eastern city of Dresden might prompt Schroeder to back off his bid to stay in the chancellery. But Schroeder showed no sign of yielding, reminding voters of his popular opposition to the war in Iraq and calling his rivals "not fit" to govern because they couldn't stand up to "big partners" — such as the United States. The rest of...

WARSAW -- In Mitteleuropa, the roles have reversed. The boring, steady Germans last Sunday opted for political chaos by failing to elect a government. A week later, the passionate but messy Poles expressed no ambivalence in picking a clean slate of leaders. Polish former communists were chucked out after a single term, keeping alive a losing streak for incumbents dating back to the birth of democratic Poland. The fresh Polish twist is found in the victor's camp. Two conservative parties built a majority around the very ideas that Angela Merkel and her center-right allies failed to sell Germans on. Law...

A senior German conservative argued Saturday that Chancellor Gerhard Schroeder must back off his claim to lead the government before the country's two biggest parties can embark on post-election coalition talks. A "grand coalition" of Schroeder's Social Democrats and challenger Angela Merkel's conservative bloc is emerging as a likely solution to the impasse following last weekend's election. But both leaders insist they should be the next chancellor. Merkel's Christian Democrats and their Bavarian sister party, the Christian Social Union, emerged three seats ahead of the Social Democrats -- well short of a majority for her program of accelerated economic reforms.

Germany's new Left party, which could play a crucial role in deciding the next chancellor, faced acute embarrassment yesterday amid claims that at least seven of its MPs had collaborated with the Stasi, the East German secret police. The head of Germany's state-held Stasi archive, Marianne Birthler, said she had documents to prove the MPs had worked as "inoffizielle mitarbeiter" (unofficial collaborators). The public had a right to know which MPs had collaborated, she said, adding: "It's a question of trust." The revelation came as the Left party held its first meeting as a parliamentary group after Sunday's inconclusive general...

Amid the post-election noise in Germany, one salient fact has been getting little play. German voters don't trust political parties to the right of the center. It's been a long time coming, but its time to write the obituary of German conservatism.

This is from the Stratfor premium service, so I can't link to it or post from it. However, it looks like a number of the German Left party were former member of the East German Stasi. This will be a big scandal, and should wipe the German Left party out of the upcoming elections for the lower house. This should change things in the big kerfuffle over how or if to make a new government.

Schroeder shows remorse for attacking Merkel Reuters Sep. 22, 2005 - Chancellor Gerhard Schroeder said on Thursday he may have gone too far with a bullying TV attack on conservative leader Angela Merkel that has drawn widespread condemnation all week -- even from his wife. "My wife said I was not at my best; I have nothing to add to that," Schroeder said when asked if he regretted a television performance on Sunday in which he has been criticized as rude. Schroeder had belittled Merkel in a joint television appearance. Schroeder has already said his wife had admonished him for...