German SPD rejects coalition with Merkel, wants new election

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Germany may face new elections after the talks of the establishment of the so-called Jamaica coalition that was supposed to include the Greens party, the CDU/CSU alliance and the Free Democrats collapsed on Monday. But the FDP announced late Sunday night that it would not continue with talks, taking the best chance for a stable governing coalition off the table.One option open to Merkel would be to try to form a minority government under her leadership - but that would require seeking ad-hoc majorities to pass pieces of legislation.

With no majority in parliament, due largely to her previous coalition partners the Social Democratic Party (SPD) refusing to enter a power sharing deal, Mrs Merkel yesterday said she would prefer another election over running a minority government.

Mrs Merkel said her conservatives had left "nothing untried to find a solution".

"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. "Germany needs stability", she told ZDF.

It has cast some doubt over whether Mrs Merkel, Europe's most powerful leader after 12 years in office, will serve a fourth term, despite winning the most seats in the September 24 election. If there is no agreement, Merkel can form a minority government or the president could call a new election.

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She said that she "will do everything to ensure that this country is well-led through these hard weeks".

Immigration policy was the main dividing point among the parties.

The other parties are also committed to reducing carbon emissions, but Mrs Merkel's bloc had not put a date on when to phase out coal.

On migration, the Christian Social Union was pushing for an annual cap on refugees, while the Greens wanted to allow more categories of recent migrants to bring their closest relatives to join them.