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German chancellor designate Angela Merkel's Christian Democrats and outgoing Chancellor Gerhard Schroeder's Social Democrats formally inked the coalition accord on Friday reached between them a week ago.
The signing of the near 200-page deal by the Christian Democratic Union (CDU), its Bavarian sister party Christian Social Union (CSU) and the Social Democratic Party (SPD) came exactly two months after the inconclusive Sept. 18 elections.
"We want to lead Germany back to the top," said Merkel at the signing ceremony, adding that her goal was to make her country one of the top three nations in the European Union (EU) in economic growth, job creation and education in ten years. Merkel is to be installed as chancellor on Nov. 22.
"We urgently need a more dynamic economy, while protecting social welfare system," said SPD chairman Matthias Platzeck on the same occasion.
Germany currently has one of the lowest economic growth rates in EU with GDP expected to grow 0.8 percent this year, and the near record high jobless rate of 11 percent.
The CDU/CSU and SPD have been forced into a month-long talks for a grand coalition government as neither of them won majority in the elections.
They finally hammered out the accord last Friday on the basis of mutual compromises. The two traditional arch political rivals sharply differ over various issues.
Such were the differences over the health insurance system reform that it had to be left out of the coalition agreement altogether.
Merkel had wanted all health insurance policies to charge a single, flat rate for all members to bail out Germany's public sickness funds, while current and future SPD Health Minister Ulla Schmidt has called for getting rid of smaller private health insurance sector by forcing doctors to charge the same fees for both public and private patients.
Merkel's party rejected the idea, which also drew strong opposition from doctors who say that without private patients subsidizing their practices, many would be driven out business.
That doctors in Germany charge far higher rates to private patients, mainly high income people, for a faster and higher quality service, accusations abound that the country has two classes of health insurance.
(Xinhua News Agency November 19, 2005)
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