Germany crisis: Chancellor Angela Merkel faces pressure for quick coalition talks

Germany crisis: Chancellor Angela Merkel faces pressure for quick coalition talks

In the immediate aftermath of the collapse of negotiations to form a so-called Jamaica Coalition, named after the colors of the four parties, Merkel had said she would prefer new elections rather than an "unstable" minority government.

The leader of Bavaria's conservatives threw his weight behind an alliance with Germany's Social Democrats (SPD) on Sunday, adding to momentum for a new "grand coalition" to break the political deadlock in Europe's biggest economy.

The former ruling parties that crossed the political divide to govern Germany together, the centre-right Christian Democrats (CDU) and left-wing Social Democratic Party (SPD) could again lead Germany despite being knocked down in the polls in September, as acting Chancellor Angela Merkel continues to search for a way to remain in power.

Dr Merkel earlier made it clear that her coalition partner would have to support a balanced budget and broadly pro-business policies.

The CSU is the Bavarian sister party of Merkel's Christian Democrats (CDU). Merkel also cited conflicts in the Middle East, tensions with Russian Federation and relations with the USA as factors that required a Germany "capable of acting".

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People have voted, and I absolutely do not favour asking people to vote again Angela Merkel German Chancellor.

She told BBC's Dateline programme: "Even if Schulz goes into talks with Merkel, current polling shows a majority of members SPD do not want this, and they will need to vote on this".

The head of the group told the paper if the SPD did not agree, then conservatives should pursue a minority government. Some 68 per cent wanted a snap election if the first round of coalition talks failed - which they now have - despite establishment figures calling a new vote a "disaster" for Germany.

The SPD, which had initially rejected a role in government after slumping to its worst election results since World War II in September, is seeking to gain leverage with the condition that any deal be subject to approval by the left-leaning party's members.

The SPD opened the door to a re-run of the grand coalition a week after talks with the Free Democrats and Greens broke down. The party will seek concessions in several areas including higher pensions and changes to the tax system. "The SPD is deeply convinced there should be discussions", Hubertus Heil, the party's general secretary, told reporters Friday.