moment”.
French President Emmanuel Macron, who has sought Merkel’s backing for an ambitious EU reform plan, expressed concern about Germany’s political deadlock. He said he hoped Berlin would remain a “stable and strong” partner to allow the two partners to “move forward together,” his office said in a statement.
The euro and Germany’s blue-chip DAX index fell slightly on the news of the stalemate, but later back edged up, erasing early losses.The acrimonious negotiations stumbled on a series of issues including immigration.
Merkel let in more than one million asylum seekers since 2015, sparking a backlash that allowed the far-right AfD party to win its first seats in parliament.Its parliamentary co-leader Alexander Gauland welcomed the collapse of the talks, saying that Merkel had “failed” and that his party “looks forward to potential new elections” in which it stands to make strong gains.
The negotiating parties also differed on environmental issues, with the Greens wanting to phase out dirty coal and combustion-engine cars, while the conservatives and FDP emphasised the need to protect industry and jobs.The Greens angrily deplored the failure to form a government, 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. Merkel could now try to convince the Social Democratic Party (SPD), which has been the junior coalition partner in her government since 2013, to return to the fold.But after suffering a humiliating loss at the ballot box, the party’s top brass has repeatedly said the SPD’s place was now in the opposition.
Merkel, who has been in power for 12 years, could also lead a minority government although she had signalled that she was not in favour of such instability.