Angela Merkel: 'I absolutely do not favor' a new election

Angela Merkel rejects snap elections after failed talks

The FDP made a decision to withdraw the talks with the Greens, the CDU and the Bavarian Christian Social Union (CSU), for a new coalition government after the September 24 federal elections.

The U-turn marks a deepening crisis for the Chancellor as hopes of a coalition officially fell apart when her Christian Democratic Union (CDU), its Bavarian sister party the Christian Social Union (CSU), the pro-business Freedom Democratic Party (FDP) and the Green party failed to come to an agreement earlier this month.

To that end, last week Merkel commented that she would be open to new elections instead of creating a minority government.

SDP leader Martin Schulz refused to back Mrs Merkel in any deal and called for further elections in the hope of regaining seats. "The SPD is deeply convinced there should be discussions", Hubertus Heil, the party's general secretary, told reporters Friday.

German Chancellor Angela Merkel spoke out Saturday against holding another election, saying she intends to form a government as soon as possible.

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Merkel, whose conservatives won most parliamentary seats in a September 24 vote but bled support to the far right, has said she wants to maintain sound finances in Germany, cut some taxes and invest in digital infrastructure.

Its leader, Paul Ziemiak, said any deal must contain recognizable conservative policies, particularly on migration and public finances.

With Germany's political map in flux, her aversion to governing without a parliamentary majority and the SPD's refusal to be her junior partner for a third time may both be negotiable.

Under pressure to preserve stability and avoid new elections, the SPD reversed its position and agreed to talk to Merkel, raising the prospect of a new grand coalition, which has ruled for the last four years, or a minority government.

An Emnid poll showed on Sunday that 52 percent of Germans backed a grand coalition.

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