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What We’re Watching: German coalition talks, India’s power woes, Oz closes PNG migrant facility

German kingmakers make their pick: Despite fears of a drawn-out process that could take months like in 2017, the Greens and the pro-business FDP have taken less than two weeks to decide whom they want to team up with in a three-way coalition government. The two parties are now talking to the left-of-center SPD, which narrowly won the September 26 federal election. Good news for those hoping to have a new government in place before Christmas, since it'll be easier for the SPD to agree on stuff with its two junior partners than for the Greens and the FDP to find common ground themselves. Bad news for the conservative CSU/CDU, which has governed Germany for 16 years under Chancellor Angela Merkel but is likely headed to the opposition after achieving its worst election result ever.

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German election outcome begins new era of three-party cooperation

Carl Bildt, former Prime Minister and Foreign Minister of Sweden, shares his perspective from Europe:

What about the outcome of the German election?

Well, as expected, the Social Democrats under Olaf Scholz came out on top. They had a very credible campaign, presenting him primarily not as a Social Democrat, but as a possible successor to Angela Merkel. Then, It's going to take quite some time to form a new government and the exact outcome of that, not entirely certain.

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Looking ahead to a post-Merkel Europe

Ian Bremmer's Quick Take:

Hi, everybody. Ian Bremmer here. Happy week to all of you and thought I'd talk a little bit about Germany and Europe. Because of course, we just had elections in Germany, 16 years of Angela Merkel's rule coming to an end - by far the strongest leader that Germany has seen post-war, Europe has seen since the collapse of the Soviet Union. And indeed in many ways, the world has seen in the 21st century. Xi Jinping, of course, runs a much bigger country and has consolidated much more power, but in terms of the free world, it's been Angela Merkel.

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Germany’s frenemy kingmakers

The German people have spoken. For the first time in over 70 years, the country's next government is all but assured to be a three-way coalition.

That coalition will probably be led by the center-left SPD, the most voted party, with the Greens and the pro-business FDP as junior partners. Less likely but still possible is a similar combination headed by the conservative CDU/CSU, which got its worst result ever. A grand coalition of the SPD and the CDU/CSU — the two parties that have dominated German federal politics since World War II — is only a fallback option if talks fail badly.

Both the Greens and especially the FDP have been in coalition governments before. But this time it's different because together they have the upper hand in negotiations with the big parties wooing them.

The problem is that the two smaller parties agree on little beyond legalizing weed, and even when they do, diverge on how to reach common goals. So, where does each stand on what separates them?

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After Merkel, who leads Europe?

Carl Bildt, former Prime Minister and Foreign Minister of Sweden, shares his perspective from Europe:

Who's going to be the leading voice politician in Europe after Angela Merkel leaves?

Well, that remains to be seen. First, we need to wait for the outcome of the German election, and then it's going to take quite some time to form a government in Germany to see who's going to be chancellor. And then of course we have elections coming up in France in the spring. Macron is likely to win, but you never know. So by next summer, we'll know more about that. And then there are other personalities there. There's Mario Draghi, prime minister of Italy, who has a strong personality. Mark Rutte of the Netherlands, as long as he's there. So it's going to take quite some time for this to be sorted out.

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German election campaign full of drama and uncertainty

Carl Bildt, former Prime Minister and Foreign Minister of Sweden, shares his perspective from Europe:

What is the outlook for the upcoming German election?

Well, that's a dramatic election campaign if you have ever seen one. We've seen the CDU, the main governing - the Merkel party, their candidate has been faltering quite heavily. You see the SPD candidate presenting himself as the responsible successor to Merkel. And we are going to have an election night that's going to be highly uncertain with a number of options open for which kind of government will be in Germany for the next four years. But days left to go, so lots of drama ahead.

All German bets are off

You might think this looks like a traditional German election. Outgoing Chancellor Angela Merkel's center-right alliance and the center-left Social Democrats are the clear favorites to lead the next coalition government. Polls show that neither party will win a majority of seats in Germany's parliament, so smaller parties — like the Greens, the pro-business Free Democrats, and the far-left Die Linke — might each become governing partners. (The far-right Alternative for Deutschland party is highly unlikely to join a coalition.)

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