Participants have described the negotiations as "good", but SPD leaders need to convince their party members as they are offering them a vote on January 21 on whether to proceed.
"I think we have reached excellent results", Schulz said after the conservatives and SPD agreed a blueprint for formal coalition negotiations in exploratory talks.
Schulz said the SPD would only agree to form a coalition if it was sure such a government would strengthen Europe, adding that his party would make suggestions on how to do that during Thursday's talks. The negotiations look sideways to far right, rubbing ir hands before a German misrule, which in ir view demonstrates inability of traditional politicians and legitimizes ir existence. The immigration of refugees should not exceed 180,000 to 220,000 people per year, no tax increases are planned, and the family reunion for refugees should be possible in the future "only for humanitarian reasons" and limited to 1,000 cases per month.
A poll released days later by Die Welt had even worse news for Merkel: Nearly half the country would like her to step down right away.
After her earlier attempt at forging a coalition with two smaller parties collapsed, she is now pinning her hopes on renewing an alliance with the Social Democrats (SPD).
Despite such reticence, German media reported on Tuesday that conservative and SPD negotiators had reached agreement on a law to attract skilled immigrants.
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The 28-page coalition deal also includes agreements on a variety of other topics, like emissions standards, more federal oversight over German education and increasing social welfare benefits.
She had until Friday been unsuccessful in forming a new government since the vote in September.
The new Merkel-led government will seek to "strengthen social cohesion in our country and overcome the divisions that have arisen", the paper says following September's inconclusive election when both the conservatives and the SPD suffered a big slump in support. They said Germany wants to reform the eurozone in partnership with France and is prepared to pay more into the European Union budget. He also referred to future of a union in need of impetus and cohesion, German president, Frank-Walter Steinmeier, who warned that Germany's reputation is on table and that Berlin should not forget that it "has a responsibility to Europe".
Gustav Horn, macroeconomic policy expert at trade union-related foundation Hans-Boeckler, said for any coalition deal to succeed, the SPD s leadership needs "something tangible to put to their members where they can say those are SPD policies, and that s why we re going into this grand coalition ". That vote will likely depend on whether rank and file members are satisfied that the party will have greater influence in a new government than in the previous grand coalition.
Seehofer told reporters this grand coalition would be different than the last one, and said the deal highlights that - for example, by including a basic pension guarantee. But they are also decisions that can not be taken by a caretaker government.
Merkel, who pledged before September's election to stick to the 2020 target, has been dubbed the "Climate Chancellor" for her ambitious aims for renewable energy.
Merkel ruled with the SPD in two of her three terms in office, including in the last parliament from 2013-2017.