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Irreconcilable migration and energy differences between four parties led to a Collapse in Merkel's Coalition Talks . Chancellor Angela Merkel has two unpleasant options: Forming a minority government or fresh elections.

Exploratory talks to form Germany’s next coalition government collapsed shortly before midnight on Sunday when the pro-business Free Democratic Party (FDP) walked out of marathon negotiations.“The four discussion partners have no common vision for modernisation of the country or common basis of trust,” the FDP leader, Christian Lindner, announced after the four parties involved missed several self-prescribed deadlines to resolve differences on migration and energy policy. “It is better not to govern than to govern badly.”Migration emerged as a contentious political issue in Germany following the refugee crisis, when 1.2 million migrants entered the country in 2015-16. The backlash against Merkel’s decision to keep open Germany’s borders has resulted in a far-right party, the anti-refugee Alternative für Deutschland, entering the German parliament for the first time in more than 50 years.In the coalition talks in Berlin, the CDU, the CSU and the FDP have, at times, worked to outdo each other on calling for a harder line on migration controls. The parties have struggled to find a common ground on climate change, with the Greens calling for a reduction in coal-generated power of 8-10 gigawatts while its potential coalition partners have expressed concerns about job losses in the energy and manufacturing sectors. With talks now seemingly over, Merkel could seek to form a minority government, either with the FDP or the Greens, and gather support from other parties on individual policy votes.

Unprecedented Result

As discussed three days ago in Hurricane Over Germany: Coalition on Verge of Collapse, New Elections? a minority government, new elections, and a 4-way coalition would be unprecedented results.

We can now rule out the coalition.

Queen of the Backroom Fails

Merkel's fourth-term bid is now in turmoil following the failure of Contentious Coalition Talks.

Merkel’s biggest setback since she first won the chancellorship in 2005 follows unusually contentious exploratory talks. Policy disagreements on immigration, climate and energy proved so entrenched that even Merkel, once dubbed “the queen of the backrooms,” couldn’t bridge them.Lindner said the draft agreement to enter into formal coalition talks was riddled with “countless contradictions,” prompting his party to walk out.

Who's Worse for the Environment: Merkel or Trump?

Earlier today, before FDP walked out, I asked this question: Who's Worse for the Environment: Merkel or Trump?

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The short answer is Merkel. I concluded with:

Peak MerkelPeak Merkel has long ago come and gone. It happened with the refugee crisis.She may not survive this mess. If the Greens and CSU fail to come to terms, new German elections may be in the works.

Good Riddance

And so here we are. Merkel's influence and power just died. The "queen of the backroom" deal failed.

Her inane refugee policy, coupled with blatant hypocrisy on energy and the environment, finally mattered.

The answer is not "more Europe".

Merkel's immigration policy led to the rise of AfD which in turn led to this result.

Europe is suffering mightily from "more Europe" rules, regulations, taxes, and hypocrisy.

Good riddance, hypocrite.

Mike "Mish" Shedlock