Berlin: Chancellor Angela Merkel was left scrambling for ways to drag Germany out of crisis today after high-stakes talks to form a new government collapsed, potentially forcing Europe's top economy into snap elections.
Germany now faces weeks, if not months of paralysis with a lame-duck government that is unlikely to take bold policy action.
With no other viable coalition in sight, Germany may be forced to hold new elections that risk being as inconclusive as September's polls.
Merkel, whose liberal refugee policy has proved deeply divisive, had been forced to seek an alliance with an unlikely group of parties after the ballot left her without a majority. But following more than a month of gruelling negotiations, the leader of the pro-business FDP, Christian Lindner, walked out of talks overnight, saying there was no "basis of trust" to forge a government with Merkel's conservative alliance CDU-CSU and ecologist Greens.
"It is better not to govern than to govern badly," he said, adding that the parties did not share "a common vision on modernising" Germany.
Voicing regret for the FDP's decision, Merkel vowed to steer Germany through the crisis. "As chancellor... I will do everything to ensure that this country comes out well through this difficult time," she said.
News magazine Der Spiegel called the breakdown in negotiations a "catastrophe" for Merkel and said Germany, long seen as an island of stability in a turbulent West, was having its "Brexit moment, its Trump moment".
The euro fell following the news, although analysts said the longer-term implications for the currency were not yet clear.
The negotiations, which turned increasingly acrimonious, stumbled on a series of issues including immigration policy. Merkel's liberal refugee policy that let in more than one million asylum seekers since 2015 had also pushed some voters to the far-right AfD, which captured 12.6 percent of the vote after an Islamophobic and anti-immigration campaign.
The parties also differed on environmental issues, with the ecologists wanting to phase out dirty coal and combustion-engine cars, while the conservatives and FDP emphasised the need to protect industry and jobs.
Party chiefs had initially set a deadline of 6:00 pm on Sunday, but that passed without a breakthrough -- after already blowing through a previous target on Thursday.
The Greens angrily deplored the collapse of talks, saying they had believed a deal could be done despite the differences and accusing the FDP of negotiating in bad faith.
Lindner, who had taken a harder line on refugees as the talks progressed, "opted for his kind of populist agitation instead of political responsibility", Greens Europe MP Reinhard Buetikofer tweeted.
Germany now faces weeks, if not months of paralysis with a lame-duck government that is unlikely to take bold policy action.
With no other viable coalition in sight, Germany may be forced to hold new elections that risk being as inconclusive as September's polls.
"It is better not to govern than to govern badly," he said, adding that the parties did not share "a common vision on modernising" Germany.
Advertisement
News magazine Der Spiegel called the breakdown in negotiations a "catastrophe" for Merkel and said Germany, long seen as an island of stability in a turbulent West, was having its "Brexit moment, its Trump moment".
Advertisement
The negotiations, which turned increasingly acrimonious, stumbled on a series of issues including immigration policy. Merkel's liberal refugee policy that let in more than one million asylum seekers since 2015 had also pushed some voters to the far-right AfD, which captured 12.6 percent of the vote after an Islamophobic and anti-immigration campaign.
Advertisement
Party chiefs had initially set a deadline of 6:00 pm on Sunday, but that passed without a breakthrough -- after already blowing through a previous target on Thursday.
Advertisement
Lindner, who had taken a harder line on refugees as the talks progressed, "opted for his kind of populist agitation instead of political responsibility", Greens Europe MP Reinhard Buetikofer tweeted.
COMMENTS
Advertisement
AI-Generated Images Of Barack Obama And Angela Merkel Enjoying Vacation On A Beach Amazes Internet Ex-German Chancellor Wins UN Award For Resettling Syrian Refugees "No Apologies": Ex-German Chancellor Defends Her Russia Policy Amid War "Trusted Mamata Banerjee But...": Father Of Murdered Doctor To NDTV UK Girl Discovers Dinosaur Footprints On Beach Walk: "Cool And Exciting" "3 Options": Champai Soren's Post On His Resignation And After India Rankings 2024: Explore Top 10 Pharmacy Colleges Japanese Man Who Lost His Wife In 2011 Tsunami Still Searches For Her UP School Teacher Suspended For Pulling Student's Hair, Kicking Her Track Latest News Live on NDTV.com and get news updates from India and around the world.