After a torrid for German politics 24 hours, in which CSU leader and German interior minister Horst Seehofer first offered to resign, only to withdraw his offer shortly after and replace it with another ultimatum for Merkel, the whole world was on edge to see if Merkel and Seehofer would have a final falling out over Germany’s refugee situation, or if they would somehow kiss and make up in the 11th hour (and 59th minute).

The answer, it turns out, was the latter and moments ago Seehofer said that he would not resign as the migration clash with Merkel had been resolved, and that the CSU and CDU had reached a “clear agreement”, signaling an end to a coalition split that risked bringing down Merkel’s government.

“We’ve reached a clear agreement on how we can stop illegal migration in the future on the border between Germany and Austria,” Seehofer told reporters after more than four hours of last-ditch talks on Monday in Berlin. He now plans to stay on in his cabinet post. “I am glad that this agreement has been reached. It has once again become clear that it is worth fighting for a conviction. And what follows now is a very sustainable and clear agreement for the future. The agreement meets my expectations on all three points,” Seehofer added.

Merkel also confirmed that a “good compromise” was reached, with her party’s chairwoman, Annegret Kramp-Karrenbauer, saying the deal will prevent migrants registered elsewhere from entering Germany. The German chancellor also said that transit centers will be established in Germany which will return migrants to the European countries from which they arrived.

“I think after a tough struggle and some difficult days we’ve found a really good compromise,” Merkel told reporters in a statement at her party’s headquarters. She said the deal establishes “transit centers” for asylum seekers that’s in line with the “spirit of partnership” across the European Union. The chancellor added that as a result of the deal, will see German migration policy working at both the EU and national levels.

According to the agreement, Germany will set up transit centers at the German border, a move which Merkel called a “good compromise.”  New migrants will be assigned to the transit centers, and if they are found to have been registered in other EU-countries (or asked for asylum in these countries), they will be sent back, which however will require bilateral agreements between Germany and those countries, such as the ones Berlin already has in place between Greece and Spain.

Germany will now have to reach an agreement with France and especially Italy, which has refused to participation in this kind of arrangement, while Central and Eastern European countries such as Hungary and Austria have already closed their borders to any new migrants, according to zerohedge.com

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