Germany in political crisis as Markel's coalition talks fail

BERLIN - German Chancellor Angela Merkel’s efforts to secure a fourth term by setting up a coalition government failed as pro-business Free Democrats Party (FDP) pulled out from talks.

FDP leader Christian Lindner said that he had taken the decision as his party could not find common ground on key issues with the two other parties – CDU and the Greens.

“Today, there was no progress but rather there were setbacks because specific compromises were questioned,” Lindner said while talking to reporters. “It is better not to rule than to rule falsely. Goodbye!”

Merkel, 63, and in office since 2005, regretted the collapse of the negotiations, adding that she would call on President Frank-Walter Steinmeier on Monday to inform him regarding the situation.

"It is a day of deep reflection on how to go forward in Germany," she said. "As chancellor, I will do everything to ensure that this country is well managed in the difficult weeks to come."

After failure in talks, Merkel is left with two options: either she forms a minority government with the Greens or the president calls the snap elections.

Her party won September’s poll but it won reduced numbers of seats as the voters did not prefer mainstream parties.

The centre-left Social Democrats (SPD), which emerged as the second biggest party in September's elections and also current partner of Merkel, has refused to again joint the coalition with her conservative.

The three unlikely would-be partners were engaged in negotiations for more than four weeks to reach a consensus on various issues regarding immigration, climate and spending.

Germany's failure to set up a government could have implications for eurozone reforms, European Union policy on Russia and Turkey, and other things.