>> Two weeks since securing her fourth term as chancellor, and Angela Merkel still doesn't have a functioning government. She can still call on support at this youth event for her party. But Reuters' Noah Barkin in Berlin says coalition building is looking increasingly fraught.>> But we haven't seen a lot of progress so far.
The four parties that are expected to enter coalition talks, Merkel's Conservatives, the Bavarian Christian Social Union, the Free Democrats, and the Greens have been sorting out their positions internally. Figuring out what the red lines in the coalition negotiations will be over the past week or so.>>
> Here she gave that coalition her most ringing endorsement yet. In reality she has little choice. Her conservatives won September's election, but bled support to the far right Alternative for Germany Party as have many>>
>> That formula is untested on the national level.>>
>> As of her coalition suitors.
Now Merkel finds herself in unfamiliar territory. And part of it boils down to sibling rivalry. Her sister party, the CSU, could prove the most problematic in talks.>> There are big concerns about whether they can resolve their differences over asylum policy. The CSU is demanding a cap, an annual cap on the number of refugees allowed into Germany.
Merkel has been resisting this for months and months. And the other parties in the potential coalition, the FTP and The Greens, also don't support this. So the CSU is seen as one of the big problems. The CSU faces a state election, Bavaria, next year and they're desperate to claw back votes from the AfD ahead of that election.
So they're taking a very hard line on immigration.>> The CDU and CSU meet Sunday to try and resolve their differences. And for the other coalition partners, there's policy on the environment and Europe that could raise red flags. A deal is predicted to be in place by Christmas.
Without one, a beacon of European stability could be heading for political crisis.