Previous: The North Is Annexed After the election, the two largest bourgeois parties start talks for a coalition - the Catholic centre, winner in the South and West, and the National Liberals, who won the North. Although there are region- and confession-based resentments against each other, the two major political forces finally agree to form a coalition government. Emperor Luitpold makes the liberal von Miquel his first federal chancellor. But not everybody profits from this fast growth. In the industrial towns, slums grow fast and the working class still lives in squalour.