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Angela Merkel coalition on the line as German SPD votes to talk or walk

Investors are bracing for the outcome, with the euro forecast to drop if the SPD bows out.

On New Year's eve, Merkel declares Europe top priority for new government
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German acting Chancellor Angela Merkel poses for photographs after the television recording of her annual New Year's speech at the Chancellery in Berlin, Germany. Photo: PTI/AP

Birgit JennenPatrick DonahueBloomberg
Chancellor Angela Merkel’s coalition plans face a make-or-break vote this weekend as the Social Democrats decide whether to help usher in her fourth term or walk away from government and risk pushing Europe’s biggest economy further into political uncertainty. Germany’s oldest political party is split over its future direction, and those divisions will play out at a national convention on Sunday in Bonn, where delegates are set to vote on whether to move forward on another government with Merkel or go into opposition.
 
Investors are bracing for the outcome, with the euro forecast to drop if the SPD bows