BERLIN (MNI) – German Chancellor Angela Merkel’s CDU/CSU-FDP
federal government coalition on Wednesday lost its majority in the upper
house of parliament, the Bundesrat representing the 16 states.

Some two months after the center-right CDU and the free-market
orientated FDP lost state elections in North Rhine-Westphalia, a new
government of the center-left SPD and the Green Party was formed today
in Germany’s most populous state.

Thereby, the Merkel camp loses North Rhine-Westphalia’s six seats
in the Bundesrat and will now control only 31 out of 69 total seats.
Merkel’s federal government from now on will have to rely on the
opposition if it wants to get bills through the Bundesrat.

Most federal tax bills need the approval of the Bundesrat. Federal
budget bills, however, can only be delayed but not blocked indefinitely
by the upper house.

It is unclear how stable the new government in North
Rhine-Westphalia will be. The SPD-Green coalition lacks a majority of
its own in the regional parliament and depends on the post-communist
Left party. Analysts do not exclude that early elections will become
necessary.

The SPD and the Greens are currently markedly ahead of the CDU and
the FDP in opinion polls in North Rhine-Westphalia and would have good
chances to win an outright majority in early elections.

–Berlin bureau: +49-30-22 62 05 80; email: twidder@marketnews.com

[TOPICS: MT$$$$,MGX$$$,M$X$$$,MGX$$$,M$G$$$,MFX$$$]