Angela Merkel and Martin Schulz have reached a coalition agreement to form a government in Germany, putting an end to the political crisis that lasted for several months.

The Christian Democratic Union, the Christian Social Union and the German Social Democratic Party have reached a coalition agreement more than four months after the parliamentary elections in the country. However, the price of filling the power vacuum seems rather high for Merkel.

She was criticized by her conservative alliance for making concessions in favor of the Social Democrats. As part of the agreement, the conservatives agreed to give up the influential Ministry of Finance to the Social Democrats. The transmission of the financial department shows the high cost that the conservatives have to pay for the renewal of a Big Coalition with the Social Democrats.

Merkel was elected with only 32.9 percent of the vote and had to pay for the poor voter confidence.

The new deal with the old coalition partners is in fact just that government against which the Germans voted back in September 2017.

Reactions in Germany are mixed – while the news has relieved many Germans, tired of months of political uncertainty, the business sector is pessimistic about the achieved coalition agreement. There are concerns about costly regulations in the future, which will mostly affect this sector. Merkel’s coalition partners for the new cabinet are also criticized for the lack of innovation as well as the country’s lagging behind in terms of digitization.

Brussels, however, breathes a sigh of relief because the European Union continues to hope for more solid support from Berlin, but the news has some reason to worry about the future of Western liberal democracy. The fact that the German center-left and center-right parties were forced to resume a coalition that weakened both formations underlined the growing influence of the marginal forces in the political spectrum.

This fact alarms both Germany and other Western countries that the center could eventually do not survive. However, this is the lesser evil than alternatives such as an unstable minority government or new elections that will lead to months of uncertainty.

The Coalition Agreement places Europe as a priority. An illustration of this is the section that is intended to deal with the “Fresh start for Europe”, which takes the lead in the text of the agreement. It is supposed to increase Germany’s contribution to the EU budget so that the Union can better perform its tasks.